Budget 2012: Tax rate table

HM Williams Accountants, author of Lawpack's 101 Ways to Pay Less Tax and winner of the prestigious Butterworth Tolley Best Tax Team Award, outline the changes to the tax rates for 2012/13.

Red text = tax year 2012/2013; Blue text = tax year 2011/12

INCOME TAX

BandFromToRate
Starting rate for savings*£0£2,710 (was £2,560)10%
Basic Rate£0£34,370 (was £35,000)20%
Higher Rate£34,371 (was £35,001)£150,00040%
Additional Rate£150,001 50%

*If your non-savings income is above this limit then the 10 per cent starting rate for savings will not apply


CAPITAL GAINS TAX (for individuals)

First £10,600 exempt


CORPORATION TAX

BandFromToRate
Small Companies Rate£1£300,00020%
Marginal Relief£300,001£1,500,00025% (was 27.5%)
Main Rate£1,500,001 24% (was 26%)


PERSONAL ALLOWANCES


Personal**£8,105 (was £7,475)
Personal (aged 65 to 74)£10,500 (was £9,940)
Personal over 75£10,660 (was £10,090)
Married Couples over 75*#£7,705 (was £7,295)

**From the 2010/11 tax year the Personal Allowance reduces where the income is above £100,000 - by £1 for every £2 of income above the £100,000 limit. This reduction applies irrespective of age.
All four higher age allowances are only available for incomes up to £25,400 for 2012/13
* = relief restricted to 10%, # = husband or wife must be born before 6th April 1935


NATIONAL INSURANCE 

Class 1 (Employment)

Employee (not contracted out)

Earnings per week - up to £146 (was £139)Nil
Earnings per week - £146-£817 (was £139-£817)12%
Earnings per week - over £8172%

Employer (not contracted out)

Earnings per week - up to £144 (was £136)Nil
Earnings per week - over £144 (was £136)13.8%

Class 2 (Self-Employment)

The old weekly stamp - £2.65 (was £2.50)
No contributions due if profits below £5,595 (was £5,315)

Class 4 (Self-Employment)

9% on profits between £7,605 and £42,475 (was 9% on profits between £7,225 and £42,475)
2% on profits over £42,475


STATE PENSION

 Per WeekPer Year
Single£107.45 (was £102.15)£5,587.40 (was £5,311.80)
Married£171.85 (was £163.35)£8,936.20 (was £8,494.20)
Age Addition (Over 80)£0.25£13.00


VAT

  • Threshold - £77,000 (was £73,000)
  • VAT Rate - 20%


STAMP DUTY

  • 5% from £1,000,000 to £2,000,000
  • 7% over 2,000,000


CAR MILEAGE ALLOWANCE

  • Up to 10,000 miles per annum - 45p
  • Over 10,000 miles per annum - 25p 


More information on these tax changes, plus this tax rate table, will be found in HM Williams Accountants' tax guides 101 Ways to Pay Less Tax and Tax Answers at a Glance. Both books are currrently being updated and will be published on 19th April including all the latest Budget changes.

Published on: March 26, 2012

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