FA 2013

TAX RATES AND ALLOWANCES F6 (Taxation).

The following tax rates and allowances are to be used in answering the questions. Income tax Normal rates % 20 40 45 Dividend rates % 10 325 37.5

Basic rate Higher rate Additional rate

1 32,010 32,011 to 150,000 150,001 and over

A starting rate of 10% applies to savings income where it falls within the first 2,790 of taxable income. Personal allowance Born on or after 6 April 1948 Born between 6 April 1938 and 5 April 1948 Born before 6 April 1938 Income limit for Born on or after 6 April 1948 Income limit for Born before 6 April 1948 Car benefit percentage The base level of CO2 emissions is 100 grams per kilometer. The percentage rates applying to petrol cars with CO2 emissions up to this level are: 75 grams per kilometer or less 5% 76 grams to 94 grams per kilometer 10% 95 grams per kilometer 11% Car fuel benefit The base figure for calculating the car fuel benefit is 21,100. Individual savings accounts (ISAs) The overall investment limit is 11,520, of which 5,760 can be invested in a cash ISA. Pension scheme limit Annual allowance 50,000 9,440 10,500 10,660 100,000 26,100

The maximum contribution that can qualify for tax relief without any earnings is 3,600.

JR JESUN
1

jesun73@yahoo.com

FA 2013
Authorized mileage allowances: cars Up to 10,000 miles Over 10,000 miles Capital allowances: rate of allowances % Plant and machinery Main pool Special rate pool 18 8 45p 25p

Motor cars (purchases since 6 April 2009 (1 April 2009 for limited companies)) New cars with CO2 emissions up to 95 grams per kilometer 100 CO2 emissions between 96 and 130 grams per kilometer 18 CO2 emissions over 130 grams per kilometer 8 Annual investment allowance First 250,000 of expenditure Corporation tax Financial year Small profits rate Main rate Lower limit 1 Upper limit Standard fraction 2011 2012 2013 20% 20% 20% 26% 24% 23% 300,000 1 300,000 1 300,000 1,500,000 1,500,000 1,500,000 3/200 1/100 3/400 100

333

Marginal relief Standard fraction x (U A) x N/A Value added tax (VAT) Standard rate Registration limit Deregistration limit Inheritance tax: tax rates 1 325,000 Excess Death rate Lifetime rate Nil 40% 20% 20% 79,000 77,000

JR JESUN
2

jesun73@yahoo.com

FA 2013
Inheritance tax: taper relief Years before death Over 3 but less than 4 years Over 4 but less than 5 years Over 5 but less than 6 years Over 6 but less than 7 years Capital gains tax Rates of tax Lower rate Higher rate Annual exempt amount Entrepreneurs relief Lifetime limit Rate of tax National insurance contributions (Not contracted out rates) Class 1 Employee 1 7,755 per year 7,756 42,475 per year 41,451 and above per year 1 7,696 per year 7,697 and above per year 27 per week Small earnings exemption 1 7,755 per year 7,756 41,450 per year 41,451 and above per year Rates of interest (assumed) Official rate of interest Rate of interest on underpaid tax Rate of interest on overpaid tax 40% 30% 05% % Nil 120 120 Nil 138 138 5,315 Nil 90 20 18% 28% 10,900 10,000,000 10% Percentage reduction % 20 40 60 80

Class 1 Class 1A Class 2 Class 4

Employer

Thank You Best of Luck. END

JR JESUN
3

jesun73@yahoo.com