Top tax facts for 2014-15 tax year @WMA_UK
PERSONAL TAX
ALLOWANCE
FOR THOSE EARNING UP TO £100,000
Born before 6 April 1938 Born between 6 April 1938 and 5 April 1948 Born after 5 April 1948 AGED 77+
£10,660 £10,500 £10,000
MARRIED COUPLES ALLOWANCE £8,165
INCOME TAX RATE BANDS Basic rate: 20% Higher rate: 40% Additional rate: 45%
£0 - £31,865 £31,866 - £150,000 £150,000+
NATIONAL INSURANCE
CONTRIBUTIONS PER WEEK (Unless stated)
EMPLOYEES’ PRIMARY CLASS 1 RATE
between primary threshold and upper earnings limit:
SAVINGS Starting rate for savings income: 10% between £0 and £2,880*
ISA ALLOWANCES
(from 6 April 2014 to 1 July 2014, when ISAs are replaced with New ISAs, or NISAs)
CASH: £5,940
20%
MARRIED WOMEN’S REDUCED RATE between primary threshold and upper earnings limit: 5.85% CLASS 2 RATE: £2.75 CLASS 2 small earnings exception (per year): £5,885
PENSIONS
ANNUAL ALLOWANCE: £40,000
STOCKS & SHARES: £11,880
(you can carry forward unused allowances for the previous three tax years)
JUNIOR ISA: £3,840
LIFETIME ALLOWANCE: £1.25million
NISA ALLOWANCES (from 1 July 2014)
DEATH BENEFITS FROM PENSIONS IN DRAWDOWN: 55%
ANNUAL ALLOWANCE: £15,000 Can be held in cash or invested in stocks and shares in any combination.
JUNIOR ISA: £4,000
STAMP DUTY
CAPITAL GAINS TAX ANNUAL CGT ALLOWANCE /ANNUAL CGT EXEMPTION: £11,000 STANDARD RATE OF CGT: 18% HIGHER RATE (For higher rate income tax payers): 28% RATE FOR ENTREPRENEURS: 10%
ON SHARES TAXABLE TRANSACTIONS YOU PAY TAX OF 0.5% WHEN YOU BUY: • • • • •
existing shares in a company incorporated in the UK an option to buy shares rights arising from shares, e.g. the rights under a rights issue an interest in shares, e.g. an interest in the money from selling them shares in a foreign company that maintains a share register in the UK
NON-TAXABLE TRANSACTIONS INHERITANCE TAX
THRESHOLD
£325,000
YOU DON’T HAVE TO PAY TAX IF YOU: • • • •
are given shares for free buy a new issue of shares in a company buy units in a unit trust invest in an ‘open ended investment company’ (the trust or company pays the tax, so you don’t have to) • buy employee shareholder shares up to 50,000
£
*If, after deducting your Personal Allowance from your total income liable to income tax, your non-savings income is above this limit, then the 10% starting rate for savings will not apply. Non-savings income includes income from employment, profits from self-employment, pensions, income from property and taxable benefits.