The Income Tax Rates 2013/14 can be found in the summary table below:
| Tax bands and rates | 2013/14 | ||
|---|---|---|---|
| Basic rate band | £32,010 | ||
| Basic tax rate | 20% | ||
| Dividend ordinary tax rate | 10% | ||
| Savings rate band | £2,790 | ||
| Savings rate | 10% | ||
| Higher rate band | £32,011 – £150,000 | ||
| Higher tax rate | 40% | ||
| Dividend higher tax rate | 32.5% | ||
| Additional rate band over | £150,000 | ||
| Additional tax rate | 45% | ||
| Dividend additional tax rate | 37.5% | ||
| Allowances that reduce taxable income | |||
| Personal allowances | under 65 | £9,440 | |
| 65 to 74 | £10,500 | ||
| 75 and over | £10,660 | ||
| Age related allowances are reduced by £1 for each £2 of income above £26,100, until the minimum of £9,440 is reached. The minimum personal allowance is reduced, by £1 for each £2 of income from ££100,000 to £118,880. | |||
| Allowances that reduce tax | |||
| Married couple’s allowance (MCA) | Born before 6 April 1935 | £7,915 | |
| Tax reduction at 10% | £791.50 | ||
| The age for MCA is of the elder spouse or civil partner. The loss of tax reduction is £1 for each £2 of income above £26,100 until the minimum £3,040 is reached. | |||
| Non domicile charge | |||
| Charge for adult non UK domiciliary – applies after UK residence in seven or more of the previous tax years |
£30,000 | ||
| Tax shelters | |||
| Enterprise Investment Scheme (EIS) up to | £1,000,000 | ||
| Maximum amount for EIS carry back | £50,000 | ||
| Income tax relief rate | 30% | ||
| Seed Enterprise Investment Scheme (SEIS) | £100,000 | ||
| Venture Capital Trust | £200,000 | ||
| VCT tax relief rate | 30% | ||
| Golden handshake max. | £30,000 | ||
| Rent a room – exempt on gross annual rent up to | £4,250 | ||
| Construction industry scheme – deduction rate | |||
| Standard rate – registered | 20% | ||
| Higher rate – not registered | 30% | ||
