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RSM Tenon’s guide to the 2010/11 tax rates. Our tax experts have produced this practical reference outlining the Chancellor\'s key tax rate changes.

RSM Tenon’s guide to the 2010/11 tax rates. Our tax experts have produced this practical reference outlining the Chancellor\'s key tax rate changes.

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  • 1. value added tax capital gains taxStandard rate 20% 2012/13 and 2011/12 IndividualsVAT fraction 1/6 £Taxable turnover limits From 1.4.12Registration* £77,000 Exemption 10,600Deregistration next year under £75,000 Standard rate 18%Cash accounting scheme £1.35m Higher rate* 28%Annual accounting scheme £1.35m Trusts* Registration is required if turnover exceeded the limit in the previous 12 months or is predicted to Exemption 5,300 exceed the limit in the next 30 days. Rate 28% *For higher and additional rate taxpayers. stamp duty/stamp duty land tax Entrepreneurs’ Relief reduces the rate to 10% on qualifying disposals, subject toStamp duty is payable at 0.5% on transfers of shares and securities. Exemption a lifetime allowance of £10m (lower limits applied prior to 6 April 2011).from stamp duty for transfers where stamp duty is £5 or less or considerationis £1,000 or less. inheritance taxStamp duty land tax (SDLT) is due on full consideration paid.On the transfer of residential land, SDLT is payable at the following rates: 2012/13 and 2011/12 Nil rate band* £325,000£0 - £125,000 nil Rate of tax on balance:£125,001 - £250,000 1% Chargeable lifetime transfers 20%£250,001 - £500,000 3% Transfers on death 40%£500,001 - £1m 4% * A claim can be made to transfer any unused nil rate band of the deceased to the surviving spouse or£1,000,001 - £2m 5% registered civil partner. The amount will be expressed as a percentage and this percentage will beOver £2m* 7% applied to the band in use on the surviving spouse or civil partner’s death and added to their own nil* This rate applies for transactions with an effective date on or after 22 March 2012 and will be 15% rate band. for most corporate purchases. All lifetime transfers not covered by exemptions and made within seven years ofThere is no SDLT up to and including 5 April 2013 for transactions in death will become chargeable for the purpose of calculating the tax payable. Anydisadvantaged areas on all residential property unless consideration is greater tax due on the lifetime transfer may then be reduced by taper relief.than £150,000. 2012/13 and 2011/12Disadvantaged areas are based upon electoral ward and postcode; more details Annual exemption £3,000at www.hmrc.gov.uk/so/disadvantaged.htm Small gifts exemption £250On the transfer of non-residential land, SDLT is payable at the following rates: Business Property Relief£0 - £150,000 nil Business/interest in unquoted company 100%£150,001 - £250,000 1% Controlling interest in quoted company 50%£250,001 - £500,000 3% Land, buildings, machinery or plant used by theOver £500,000 4% transferor’s own company (controlling interest only) or partnership 50%No SDLT is charged on new ‘zero carbon’ homes/flats up to £500,000 and thereis a credit of £15,000 for homes/flats over £500,000. This relief only applies to Agricultural Property Relief (on agricultural value only) www.rsmtenon.comacquisitions before 1 October 2012. Owner occupied land and property 100%Lease duty is payable on new leases and is calculated by reference to the NPV Tenanted land and property with vacant possession 100% RSM Tenon Limited is a member of RSM Tenon Group.(Net Present Value) of all rental payments due under the terms of the lease. Agricultural land and property let on or after 1/9/95 100% RSM Tenon Group PLC is an independent member of the RSM International network.Non-residential properties up to £150,000 0% The RSM International network is a network of independent accounting and consulting firms over £150,000 1% each of which practices in its own right. RSM International is the brand used by the network which is not itself a separate legal entity in any jurisdiction.Residential properties up to £125,000 0% RSM Tenon Limited (No 4066924) is registered in England and Wales. Registered Office 66 Tax Rates 2012/13 over £125,000 1% The information in this tax card is based upon the 2012 Budget and earlier announcements Chiltern Street, London W1U 4GB. England. and may be subject to amendment by the Finance Act. MMH26380212
  • 2. INCOME TAX RATES national insurance benefits company taxation 2012/13 2011/12 2012/13 Class 1 (employed) contracted in rates Year to 31.3.13 Year to 31.3.12 Chargeable on employees earning £8,500 or over (including benefits) and directors. Band £ Rate % Band £ Rate % Employee Employer Profits band Rate Profits band Rate 0 - 2,710 10* 0 - 2,560 10* Company car benefit - 2012/13 £ % £ % Earnings per week % Earnings per week % The charge is a percentage of the list price. The percentage depends on the level 0 - 34,370 20** 0 - 35,000 20** Small profits rate 0 - 300,000 20* 0 - 300,000 20* Up to £146 Nil* Up to £144 Nil of carbon dioxide emissions (CO2). The lower threshold is 11% for cars with CO2 34,371 - 150,000 40 35,001 - 150,000 40 Marginal (small £146.01 - £817 12 Over £144 13.8 emissions of 100g/km or over (except certain green cars, see below) and increases Over 150,000 50l Over 150,000 50l at 1% per 5g/km to the maximum charge of 35%. An additional 3% diesel charge profits) rate 300,001 - 1,500,000 25* 300,001 - 1,500,000 27.5**Only applicable to dividends and savings income. The 10% rate is not available if taxable non-savings Over £817 2 *Entitlement to contribution-based benefits retained for earnings between £107 and £146 per week. applies (not to exceed 35% overall). Main rate Over 1,500,000 24* Over 1,500,000 26*income exceeds £2,710 (£2,560).**Except dividends (10%). The list price relates to the day before first registration and includes accessories. Standard fraction 1/100* 3/200* Except dividends (32.5%). Class 1A (employers) 13.8% on employee taxable benefitsl Except dividends (42.5%). Class 1B (employers) 13.8% on PAYE Settlement Agreements The list price is reduced by the employee’s capital contribution when the car is The profits limits are reduced for accounting periods of less than 12 months and for a company withOther income taxed first, then savings income and finally dividends. first made available, subject to a maximum deduction of £5,000. Payments by associated companies. Class 2 (self-employed) flat rate per week £2.65 *Different rates apply for ring-fenced (broadly oil industry) profit. small earnings exception £5,595 p.a. employees for private use may reduce the above benefits. INCOME TAX Reliefs Loans to individuals Class 3 (voluntary) flat rate per week £13.25 Green cars 2012/13 2011/12 Overdrawn current or loan accounts of participators – corporation tax based £ £ Class 4 (self-employed) Cars with CO2 emissions of 75g/km or less are charged at 5% and cars with CO2 9% on profits between £7,605 and £42,475 upon 25% of loan balance at accounting period end, unless repaid within 9Personal allowance - under 65 8,105 7,475 plus 2% on profits over £42,475 emissions up to and including 99g/km are charged at 10% of the list price. The - 65 - 74* 10,500 9,940 5% or 10% charge can be increased by the 3% diesel supplement. Cars and vans months of accounts date. - 75 and over* 10,660 10,090 individual savings accounts (ISAs) which cannot emit CO2 emissions when driven are charged at 0%.(Reduce personal allowance by £1 for every £2 of adjusted net income over £100,000.) CAPITAL ALLOWANCES AND RELIEFS 2012/13 2011/12 Van benefitMarried couple’s allowance (relief at 10%)* 7,705 7,295 Plant & machinery 18% (1) Reducing balance on existing plant(Either partner 75 or over and born before 6 April 1935.) Overall annual investment limit £11,280 £10,680 The company van benefit for all types of CO2 emitting vans is £3,000 when used for significant private use. If free or subsidised fuel is provided for private use Annual Investment 100% (2) On first £25,000 investment in plant and - min. amount 2,960 2,800 Comprising - cash up to £5,640 max. £5,340 max. there is an additional chargeable fuel benefit of £550. Allowance machinery*Age allowance income limit 25,400 24,000 - balance in stocks and shares £11,280 max. £10,680 max.(Reduce age allowance by £1 for every £2 of adjusted net income over £25,400 (£24,000).) Long-life assets 8% (3) Junior ISA* £3,600 £3,600 Car fuel benefit Integral features 8% (3)Blind person’s allowance 2,100 1,980 The charge is calculated using the same CO2 emission basis as used for the car * Child Trust Fund accounts also have the same limit. Low emission new cars 100% New cars with CO2 emissions not benefit. The appropriate percentage will be multiplied by £20,200 (2011/12 £18,800). exceeding 110g/km Non-domiciles and remittance basis trusts and estates Advisory fuel rates – company cars Lower emission cars 18% (1) Cars with CO2 emissions not exceedingDe minimis limit for foreign income before remittance basis election applies: £2,000. The tax-free limits per mile from 1 March 2012* are as follows: 160g/km Income Tax 2012/13 2011/12 Higher emission cars 8% (3) Cars with CO2 emissions more thanThe tax charge on unremitted income for non-domiciles who elect for remittance Engine size Petrol LPG Engine Size Diesel Standard rate band* £1,000 £1,000basis for 2012/13 is: 1,400cc or less 15p 10p 1,600cc or less 13p 160g/km Rates of tax** Energy Efficient Plant 100% (4) Details at www.etl.decc.gov.uk• £30,000 - where UK resident in at least 7 of the 9 tax years immediately Rate applicable to trusts 50% 50% 1,401cc - 2000cc 18p 12p 1,600cc - 2,000cc 15p preceding that year, and Over 2,000cc 26p 18p Over 2,000cc 19p Research & Development 100% Assets used solely for qualifying R&D Dividends 42.5% 42.5% (1) 20% before April 2012.• £50,000 - where UK resident in at least 12 of the 14 tax years immediately Capital Gains Tax * These rates are reviewed quarterly on 1 March, 1 June, 1 September and 1 December. (2) The allowance is generally available for long life assets and integral features as well as plant and preceding that year. Rate of tax 28% 28% A passenger payment of 5p per mile also applies to company cars. machinery (excluding cars). Special rules apply to accounting periods which straddle April 2012 and toRemittance basis taxpayers are not entitled to UK personal or capital gains allowances businesses under common control. Before April 2012 the allowance was £100,000 per annum. Exemptions Statutory mileage allowances – employee owned cars - 2012/13 (3) 10% before April 2012.unless foreign income falls within de minimis of £2,000. Most trusts (maximum)*** £5,300 £5,300 (4) Subject to cap, first year tax credits available at 19% of the loss attributable to ECAs. The tax-free limits per mile are as follows: Certain trusts and most estates**** £10,600 £10,600 Enhanced tax relief for companies - 2012/13 Pension Premiums First 10,000 miles in tax year Miles over 10,000 * The band is divided equally by the number of settlements created by same settlor subject to a Research & Development: Enhanced deduction of up to 225%* (200% for minimum of £200 for each settlement. Cars and vans 45p 25p• From 6 April 2012, tax relief available for personal contributions: higher of £3,600 ** Trusts for the vulnerable will be taxed on the basis of the individual’s circumstances for both income Motorcycles 24p 24p 2011/12) for SMEs and 130% for large companies of qualifying costs incurred (gross) or 100% of relevant earnings. tax and capital gains tax. Cycles 20p 20p on qualifying R&D. The definition of an SME** is:• Any contributions in excess of £50,000, whether personal or by the employer, *** Exemption divided by the number of qualifying settlements created after 6 June 1978 by one settlor, subject to a minimum of £1,060. Passengers 5p 5p Employees < 500 and either may be subject to income tax on the individual. **** Trustees of settlements for the disabled and personal representatives of the estate of a deceased person. Turnover < Euro 100m or Payments in excess of these limits are taxable. Where payment is less than the• Where the £50,000 limit is not fully used it may be possible to carry the unused Assets < Euro 86m The exemption is available for personal representatives in year of death and in the authorised mileage rate employees can claim tax relief on the shortfall. amount forward for three years. * The increased rate is subject to State aid approval. following two years.• Employers will obtain tax relief on employer contributions if they are paid and ** This is subject to aggregating relevant amounts of any related companies such as group companies. made ‘wholly and exclusively’. Tax relief for large contributions may be spread Contaminated Land Relief: 150% deduction for qualifying costs incurred on over several years. remediation of land and buildings.
  • 3. INCOME TAX RATES national insurance benefits company taxation 2012/13 2011/12 2012/13 Class 1 (employed) contracted in rates Year to 31.3.13 Year to 31.3.12 Chargeable on employees earning £8,500 or over (including benefits) and directors. Band £ Rate % Band £ Rate % Employee Employer Profits band Rate Profits band Rate 0 - 2,710 10* 0 - 2,560 10* Company car benefit - 2012/13 £ % £ % Earnings per week % Earnings per week % The charge is a percentage of the list price. The percentage depends on the level 0 - 34,370 20** 0 - 35,000 20** Small profits rate 0 - 300,000 20* 0 - 300,000 20* Up to £146 Nil* Up to £144 Nil of carbon dioxide emissions (CO2). The lower threshold is 11% for cars with CO2 34,371 - 150,000 40 35,001 - 150,000 40 Marginal (small £146.01 - £817 12 Over £144 13.8 emissions of 100g/km or over (except certain green cars, see below) and increases Over 150,000 50l Over 150,000 50l at 1% per 5g/km to the maximum charge of 35%. An additional 3% diesel charge profits) rate 300,001 - 1,500,000 25* 300,001 - 1,500,000 27.5**Only applicable to dividends and savings income. The 10% rate is not available if taxable non-savings Over £817 2 *Entitlement to contribution-based benefits retained for earnings between £107 and £146 per week. applies (not to exceed 35% overall). Main rate Over 1,500,000 24* Over 1,500,000 26*income exceeds £2,710 (£2,560).**Except dividends (10%). The list price relates to the day before first registration and includes accessories. Standard fraction 1/100* 3/200* Except dividends (32.5%). Class 1A (employers) 13.8% on employee taxable benefitsl Except dividends (42.5%). Class 1B (employers) 13.8% on PAYE Settlement Agreements The list price is reduced by the employee’s capital contribution when the car is The profits limits are reduced for accounting periods of less than 12 months and for a company withOther income taxed first, then savings income and finally dividends. first made available, subject to a maximum deduction of £5,000. Payments by associated companies. Class 2 (self-employed) flat rate per week £2.65 *Different rates apply for ring-fenced (broadly oil industry) profit. small earnings exception £5,595 p.a. employees for private use may reduce the above benefits. INCOME TAX Reliefs Loans to individuals Class 3 (voluntary) flat rate per week £13.25 Green cars 2012/13 2011/12 Overdrawn current or loan accounts of participators – corporation tax based £ £ Class 4 (self-employed) Cars with CO2 emissions of 75g/km or less are charged at 5% and cars with CO2 9% on profits between £7,605 and £42,475 upon 25% of loan balance at accounting period end, unless repaid within 9Personal allowance - under 65 8,105 7,475 plus 2% on profits over £42,475 emissions up to and including 99g/km are charged at 10% of the list price. The - 65 - 74* 10,500 9,940 5% or 10% charge can be increased by the 3% diesel supplement. Cars and vans months of accounts date. - 75 and over* 10,660 10,090 individual savings accounts (ISAs) which cannot emit CO2 emissions when driven are charged at 0%.(Reduce personal allowance by £1 for every £2 of adjusted net income over £100,000.) CAPITAL ALLOWANCES AND RELIEFS 2012/13 2011/12 Van benefitMarried couple’s allowance (relief at 10%)* 7,705 7,295 Plant & machinery 18% (1) Reducing balance on existing plant(Either partner 75 or over and born before 6 April 1935.) Overall annual investment limit £11,280 £10,680 The company van benefit for all types of CO2 emitting vans is £3,000 when used for significant private use. If free or subsidised fuel is provided for private use Annual Investment 100% (2) On first £25,000 investment in plant and - min. amount 2,960 2,800 Comprising - cash up to £5,640 max. £5,340 max. there is an additional chargeable fuel benefit of £550. Allowance machinery*Age allowance income limit 25,400 24,000 - balance in stocks and shares £11,280 max. £10,680 max.(Reduce age allowance by £1 for every £2 of adjusted net income over £25,400 (£24,000).) Long-life assets 8% (3) Junior ISA* £3,600 £3,600 Car fuel benefit Integral features 8% (3)Blind person’s allowance 2,100 1,980 The charge is calculated using the same CO2 emission basis as used for the car * Child Trust Fund accounts also have the same limit. Low emission new cars 100% New cars with CO2 emissions not benefit. The appropriate percentage will be multiplied by £20,200 (2011/12 £18,800). exceeding 110g/km Non-domiciles and remittance basis trusts and estates Advisory fuel rates – company cars Lower emission cars 18% (1) Cars with CO2 emissions not exceedingDe minimis limit for foreign income before remittance basis election applies: £2,000. The tax-free limits per mile from 1 March 2012* are as follows: 160g/km Income Tax 2012/13 2011/12 Higher emission cars 8% (3) Cars with CO2 emissions more thanThe tax charge on unremitted income for non-domiciles who elect for remittance Engine size Petrol LPG Engine Size Diesel Standard rate band* £1,000 £1,000basis for 2012/13 is: 1,400cc or less 15p 10p 1,600cc or less 13p 160g/km Rates of tax** Energy Efficient Plant 100% (4) Details at www.etl.decc.gov.uk• £30,000 - where UK resident in at least 7 of the 9 tax years immediately Rate applicable to trusts 50% 50% 1,401cc - 2000cc 18p 12p 1,600cc - 2,000cc 15p preceding that year, and Over 2,000cc 26p 18p Over 2,000cc 19p Research & Development 100% Assets used solely for qualifying R&D Dividends 42.5% 42.5% (1) 20% before April 2012.• £50,000 - where UK resident in at least 12 of the 14 tax years immediately Capital Gains Tax * These rates are reviewed quarterly on 1 March, 1 June, 1 September and 1 December. (2) The allowance is generally available for long life assets and integral features as well as plant and preceding that year. Rate of tax 28% 28% A passenger payment of 5p per mile also applies to company cars. machinery (excluding cars). Special rules apply to accounting periods which straddle April 2012 and toRemittance basis taxpayers are not entitled to UK personal or capital gains allowances businesses under common control. Before April 2012 the allowance was £100,000 per annum. Exemptions Statutory mileage allowances – employee owned cars - 2012/13 (3) 10% before April 2012.unless foreign income falls within de minimis of £2,000. Most trusts (maximum)*** £5,300 £5,300 (4) Subject to cap, first year tax credits available at 19% of the loss attributable to ECAs. The tax-free limits per mile are as follows: Certain trusts and most estates**** £10,600 £10,600 Enhanced tax relief for companies - 2012/13 Pension Premiums First 10,000 miles in tax year Miles over 10,000 * The band is divided equally by the number of settlements created by same settlor subject to a Research & Development: Enhanced deduction of up to 225%* (200% for minimum of £200 for each settlement. Cars and vans 45p 25p• From 6 April 2012, tax relief available for personal contributions: higher of £3,600 ** Trusts for the vulnerable will be taxed on the basis of the individual’s circumstances for both income Motorcycles 24p 24p 2011/12) for SMEs and 130% for large companies of qualifying costs incurred (gross) or 100% of relevant earnings. tax and capital gains tax. Cycles 20p 20p on qualifying R&D. The definition of an SME** is:• Any contributions in excess of £50,000, whether personal or by the employer, *** Exemption divided by the number of qualifying settlements created after 6 June 1978 by one settlor, subject to a minimum of £1,060. Passengers 5p 5p Employees < 500 and either may be subject to income tax on the individual. **** Trustees of settlements for the disabled and personal representatives of the estate of a deceased person. Turnover < Euro 100m or Payments in excess of these limits are taxable. Where payment is less than the• Where the £50,000 limit is not fully used it may be possible to carry the unused Assets < Euro 86m The exemption is available for personal representatives in year of death and in the authorised mileage rate employees can claim tax relief on the shortfall. amount forward for three years. * The increased rate is subject to State aid approval. following two years.• Employers will obtain tax relief on employer contributions if they are paid and ** This is subject to aggregating relevant amounts of any related companies such as group companies. made ‘wholly and exclusively’. Tax relief for large contributions may be spread Contaminated Land Relief: 150% deduction for qualifying costs incurred on over several years. remediation of land and buildings.
  • 4. INCOME TAX RATES national insurance benefits company taxation 2012/13 2011/12 2012/13 Class 1 (employed) contracted in rates Year to 31.3.13 Year to 31.3.12 Chargeable on employees earning £8,500 or over (including benefits) and directors. Band £ Rate % Band £ Rate % Employee Employer Profits band Rate Profits band Rate 0 - 2,710 10* 0 - 2,560 10* Company car benefit - 2012/13 £ % £ % Earnings per week % Earnings per week % The charge is a percentage of the list price. The percentage depends on the level 0 - 34,370 20** 0 - 35,000 20** Small profits rate 0 - 300,000 20* 0 - 300,000 20* Up to £146 Nil* Up to £144 Nil of carbon dioxide emissions (CO2). The lower threshold is 11% for cars with CO2 34,371 - 150,000 40 35,001 - 150,000 40 Marginal (small £146.01 - £817 12 Over £144 13.8 emissions of 100g/km or over (except certain green cars, see below) and increases Over 150,000 50l Over 150,000 50l at 1% per 5g/km to the maximum charge of 35%. An additional 3% diesel charge profits) rate 300,001 - 1,500,000 25* 300,001 - 1,500,000 27.5**Only applicable to dividends and savings income. The 10% rate is not available if taxable non-savings Over £817 2 *Entitlement to contribution-based benefits retained for earnings between £107 and £146 per week. applies (not to exceed 35% overall). Main rate Over 1,500,000 24* Over 1,500,000 26*income exceeds £2,710 (£2,560).**Except dividends (10%). The list price relates to the day before first registration and includes accessories. Standard fraction 1/100* 3/200* Except dividends (32.5%). Class 1A (employers) 13.8% on employee taxable benefitsl Except dividends (42.5%). Class 1B (employers) 13.8% on PAYE Settlement Agreements The list price is reduced by the employee’s capital contribution when the car is The profits limits are reduced for accounting periods of less than 12 months and for a company withOther income taxed first, then savings income and finally dividends. first made available, subject to a maximum deduction of £5,000. Payments by associated companies. Class 2 (self-employed) flat rate per week £2.65 *Different rates apply for ring-fenced (broadly oil industry) profit. small earnings exception £5,595 p.a. employees for private use may reduce the above benefits. INCOME TAX Reliefs Loans to individuals Class 3 (voluntary) flat rate per week £13.25 Green cars 2012/13 2011/12 Overdrawn current or loan accounts of participators – corporation tax based £ £ Class 4 (self-employed) Cars with CO2 emissions of 75g/km or less are charged at 5% and cars with CO2 9% on profits between £7,605 and £42,475 upon 25% of loan balance at accounting period end, unless repaid within 9Personal allowance - under 65 8,105 7,475 plus 2% on profits over £42,475 emissions up to and including 99g/km are charged at 10% of the list price. The - 65 - 74* 10,500 9,940 5% or 10% charge can be increased by the 3% diesel supplement. Cars and vans months of accounts date. - 75 and over* 10,660 10,090 individual savings accounts (ISAs) which cannot emit CO2 emissions when driven are charged at 0%.(Reduce personal allowance by £1 for every £2 of adjusted net income over £100,000.) CAPITAL ALLOWANCES AND RELIEFS 2012/13 2011/12 Van benefitMarried couple’s allowance (relief at 10%)* 7,705 7,295 Plant & machinery 18% (1) Reducing balance on existing plant(Either partner 75 or over and born before 6 April 1935.) Overall annual investment limit £11,280 £10,680 The company van benefit for all types of CO2 emitting vans is £3,000 when used for significant private use. If free or subsidised fuel is provided for private use Annual Investment 100% (2) On first £25,000 investment in plant and - min. amount 2,960 2,800 Comprising - cash up to £5,640 max. £5,340 max. there is an additional chargeable fuel benefit of £550. Allowance machinery*Age allowance income limit 25,400 24,000 - balance in stocks and shares £11,280 max. £10,680 max.(Reduce age allowance by £1 for every £2 of adjusted net income over £25,400 (£24,000).) Long-life assets 8% (3) Junior ISA* £3,600 £3,600 Car fuel benefit Integral features 8% (3)Blind person’s allowance 2,100 1,980 The charge is calculated using the same CO2 emission basis as used for the car * Child Trust Fund accounts also have the same limit. Low emission new cars 100% New cars with CO2 emissions not benefit. The appropriate percentage will be multiplied by £20,200 (2011/12 £18,800). exceeding 110g/km Non-domiciles and remittance basis trusts and estates Advisory fuel rates – company cars Lower emission cars 18% (1) Cars with CO2 emissions not exceedingDe minimis limit for foreign income before remittance basis election applies: £2,000. The tax-free limits per mile from 1 March 2012* are as follows: 160g/km Income Tax 2012/13 2011/12 Higher emission cars 8% (3) Cars with CO2 emissions more thanThe tax charge on unremitted income for non-domiciles who elect for remittance Engine size Petrol LPG Engine Size Diesel Standard rate band* £1,000 £1,000basis for 2012/13 is: 1,400cc or less 15p 10p 1,600cc or less 13p 160g/km Rates of tax** Energy Efficient Plant 100% (4) Details at www.etl.decc.gov.uk• £30,000 - where UK resident in at least 7 of the 9 tax years immediately Rate applicable to trusts 50% 50% 1,401cc - 2000cc 18p 12p 1,600cc - 2,000cc 15p preceding that year, and Over 2,000cc 26p 18p Over 2,000cc 19p Research & Development 100% Assets used solely for qualifying R&D Dividends 42.5% 42.5% (1) 20% before April 2012.• £50,000 - where UK resident in at least 12 of the 14 tax years immediately Capital Gains Tax * These rates are reviewed quarterly on 1 March, 1 June, 1 September and 1 December. (2) The allowance is generally available for long life assets and integral features as well as plant and preceding that year. Rate of tax 28% 28% A passenger payment of 5p per mile also applies to company cars. machinery (excluding cars). Special rules apply to accounting periods which straddle April 2012 and toRemittance basis taxpayers are not entitled to UK personal or capital gains allowances businesses under common control. Before April 2012 the allowance was £100,000 per annum. Exemptions Statutory mileage allowances – employee owned cars - 2012/13 (3) 10% before April 2012.unless foreign income falls within de minimis of £2,000. Most trusts (maximum)*** £5,300 £5,300 (4) Subject to cap, first year tax credits available at 19% of the loss attributable to ECAs. The tax-free limits per mile are as follows: Certain trusts and most estates**** £10,600 £10,600 Enhanced tax relief for companies - 2012/13 Pension Premiums First 10,000 miles in tax year Miles over 10,000 * The band is divided equally by the number of settlements created by same settlor subject to a Research & Development: Enhanced deduction of up to 225%* (200% for minimum of £200 for each settlement. Cars and vans 45p 25p• From 6 April 2012, tax relief available for personal contributions: higher of £3,600 ** Trusts for the vulnerable will be taxed on the basis of the individual’s circumstances for both income Motorcycles 24p 24p 2011/12) for SMEs and 130% for large companies of qualifying costs incurred (gross) or 100% of relevant earnings. tax and capital gains tax. Cycles 20p 20p on qualifying R&D. The definition of an SME** is:• Any contributions in excess of £50,000, whether personal or by the employer, *** Exemption divided by the number of qualifying settlements created after 6 June 1978 by one settlor, subject to a minimum of £1,060. Passengers 5p 5p Employees < 500 and either may be subject to income tax on the individual. **** Trustees of settlements for the disabled and personal representatives of the estate of a deceased person. Turnover < Euro 100m or Payments in excess of these limits are taxable. Where payment is less than the• Where the £50,000 limit is not fully used it may be possible to carry the unused Assets < Euro 86m The exemption is available for personal representatives in year of death and in the authorised mileage rate employees can claim tax relief on the shortfall. amount forward for three years. * The increased rate is subject to State aid approval. following two years.• Employers will obtain tax relief on employer contributions if they are paid and ** This is subject to aggregating relevant amounts of any related companies such as group companies. made ‘wholly and exclusively’. Tax relief for large contributions may be spread Contaminated Land Relief: 150% deduction for qualifying costs incurred on over several years. remediation of land and buildings.
  • 5. INCOME TAX RATES national insurance benefits company taxation 2012/13 2011/12 2012/13 Class 1 (employed) contracted in rates Year to 31.3.13 Year to 31.3.12 Chargeable on employees earning £8,500 or over (including benefits) and directors. Band £ Rate % Band £ Rate % Employee Employer Profits band Rate Profits band Rate 0 - 2,710 10* 0 - 2,560 10* Company car benefit - 2012/13 £ % £ % Earnings per week % Earnings per week % The charge is a percentage of the list price. The percentage depends on the level 0 - 34,370 20** 0 - 35,000 20** Small profits rate 0 - 300,000 20* 0 - 300,000 20* Up to £146 Nil* Up to £144 Nil of carbon dioxide emissions (CO2). The lower threshold is 11% for cars with CO2 34,371 - 150,000 40 35,001 - 150,000 40 Marginal (small £146.01 - £817 12 Over £144 13.8 emissions of 100g/km or over (except certain green cars, see below) and increases Over 150,000 50l Over 150,000 50l at 1% per 5g/km to the maximum charge of 35%. An additional 3% diesel charge profits) rate 300,001 - 1,500,000 25* 300,001 - 1,500,000 27.5**Only applicable to dividends and savings income. The 10% rate is not available if taxable non-savings Over £817 2 *Entitlement to contribution-based benefits retained for earnings between £107 and £146 per week. applies (not to exceed 35% overall). Main rate Over 1,500,000 24* Over 1,500,000 26*income exceeds £2,710 (£2,560).**Except dividends (10%). The list price relates to the day before first registration and includes accessories. Standard fraction 1/100* 3/200* Except dividends (32.5%). Class 1A (employers) 13.8% on employee taxable benefitsl Except dividends (42.5%). Class 1B (employers) 13.8% on PAYE Settlement Agreements The list price is reduced by the employee’s capital contribution when the car is The profits limits are reduced for accounting periods of less than 12 months and for a company withOther income taxed first, then savings income and finally dividends. first made available, subject to a maximum deduction of £5,000. Payments by associated companies. Class 2 (self-employed) flat rate per week £2.65 *Different rates apply for ring-fenced (broadly oil industry) profit. small earnings exception £5,595 p.a. employees for private use may reduce the above benefits. INCOME TAX Reliefs Loans to individuals Class 3 (voluntary) flat rate per week £13.25 Green cars 2012/13 2011/12 Overdrawn current or loan accounts of participators – corporation tax based £ £ Class 4 (self-employed) Cars with CO2 emissions of 75g/km or less are charged at 5% and cars with CO2 9% on profits between £7,605 and £42,475 upon 25% of loan balance at accounting period end, unless repaid within 9Personal allowance - under 65 8,105 7,475 plus 2% on profits over £42,475 emissions up to and including 99g/km are charged at 10% of the list price. The - 65 - 74* 10,500 9,940 5% or 10% charge can be increased by the 3% diesel supplement. Cars and vans months of accounts date. - 75 and over* 10,660 10,090 individual savings accounts (ISAs) which cannot emit CO2 emissions when driven are charged at 0%.(Reduce personal allowance by £1 for every £2 of adjusted net income over £100,000.) CAPITAL ALLOWANCES AND RELIEFS 2012/13 2011/12 Van benefitMarried couple’s allowance (relief at 10%)* 7,705 7,295 Plant & machinery 18% (1) Reducing balance on existing plant(Either partner 75 or over and born before 6 April 1935.) Overall annual investment limit £11,280 £10,680 The company van benefit for all types of CO2 emitting vans is £3,000 when used for significant private use. If free or subsidised fuel is provided for private use Annual Investment 100% (2) On first £25,000 investment in plant and - min. amount 2,960 2,800 Comprising - cash up to £5,640 max. £5,340 max. there is an additional chargeable fuel benefit of £550. Allowance machinery*Age allowance income limit 25,400 24,000 - balance in stocks and shares £11,280 max. £10,680 max.(Reduce age allowance by £1 for every £2 of adjusted net income over £25,400 (£24,000).) Long-life assets 8% (3) Junior ISA* £3,600 £3,600 Car fuel benefit Integral features 8% (3)Blind person’s allowance 2,100 1,980 The charge is calculated using the same CO2 emission basis as used for the car * Child Trust Fund accounts also have the same limit. Low emission new cars 100% New cars with CO2 emissions not benefit. The appropriate percentage will be multiplied by £20,200 (2011/12 £18,800). exceeding 110g/km Non-domiciles and remittance basis trusts and estates Advisory fuel rates – company cars Lower emission cars 18% (1) Cars with CO2 emissions not exceedingDe minimis limit for foreign income before remittance basis election applies: £2,000. The tax-free limits per mile from 1 March 2012* are as follows: 160g/km Income Tax 2012/13 2011/12 Higher emission cars 8% (3) Cars with CO2 emissions more thanThe tax charge on unremitted income for non-domiciles who elect for remittance Engine size Petrol LPG Engine Size Diesel Standard rate band* £1,000 £1,000basis for 2012/13 is: 1,400cc or less 15p 10p 1,600cc or less 13p 160g/km Rates of tax** Energy Efficient Plant 100% (4) Details at www.etl.decc.gov.uk• £30,000 - where UK resident in at least 7 of the 9 tax years immediately Rate applicable to trusts 50% 50% 1,401cc - 2000cc 18p 12p 1,600cc - 2,000cc 15p preceding that year, and Over 2,000cc 26p 18p Over 2,000cc 19p Research & Development 100% Assets used solely for qualifying R&D Dividends 42.5% 42.5% (1) 20% before April 2012.• £50,000 - where UK resident in at least 12 of the 14 tax years immediately Capital Gains Tax * These rates are reviewed quarterly on 1 March, 1 June, 1 September and 1 December. (2) The allowance is generally available for long life assets and integral features as well as plant and preceding that year. Rate of tax 28% 28% A passenger payment of 5p per mile also applies to company cars. machinery (excluding cars). Special rules apply to accounting periods which straddle April 2012 and toRemittance basis taxpayers are not entitled to UK personal or capital gains allowances businesses under common control. Before April 2012 the allowance was £100,000 per annum. Exemptions Statutory mileage allowances – employee owned cars - 2012/13 (3) 10% before April 2012.unless foreign income falls within de minimis of £2,000. Most trusts (maximum)*** £5,300 £5,300 (4) Subject to cap, first year tax credits available at 19% of the loss attributable to ECAs. The tax-free limits per mile are as follows: Certain trusts and most estates**** £10,600 £10,600 Enhanced tax relief for companies - 2012/13 Pension Premiums First 10,000 miles in tax year Miles over 10,000 * The band is divided equally by the number of settlements created by same settlor subject to a Research & Development: Enhanced deduction of up to 225%* (200% for minimum of £200 for each settlement. Cars and vans 45p 25p• From 6 April 2012, tax relief available for personal contributions: higher of £3,600 ** Trusts for the vulnerable will be taxed on the basis of the individual’s circumstances for both income Motorcycles 24p 24p 2011/12) for SMEs and 130% for large companies of qualifying costs incurred (gross) or 100% of relevant earnings. tax and capital gains tax. Cycles 20p 20p on qualifying R&D. The definition of an SME** is:• Any contributions in excess of £50,000, whether personal or by the employer, *** Exemption divided by the number of qualifying settlements created after 6 June 1978 by one settlor, subject to a minimum of £1,060. Passengers 5p 5p Employees < 500 and either may be subject to income tax on the individual. **** Trustees of settlements for the disabled and personal representatives of the estate of a deceased person. Turnover < Euro 100m or Payments in excess of these limits are taxable. Where payment is less than the• Where the £50,000 limit is not fully used it may be possible to carry the unused Assets < Euro 86m The exemption is available for personal representatives in year of death and in the authorised mileage rate employees can claim tax relief on the shortfall. amount forward for three years. * The increased rate is subject to State aid approval. following two years.• Employers will obtain tax relief on employer contributions if they are paid and ** This is subject to aggregating relevant amounts of any related companies such as group companies. made ‘wholly and exclusively’. Tax relief for large contributions may be spread Contaminated Land Relief: 150% deduction for qualifying costs incurred on over several years. remediation of land and buildings.
  • 6. value added tax capital gains taxStandard rate 20% 2012/13 and 2011/12 IndividualsVAT fraction 1/6 £Taxable turnover limits From 1.4.12Registration* £77,000 Exemption 10,600Deregistration next year under £75,000 Standard rate 18%Cash accounting scheme £1.35m Higher rate* 28%Annual accounting scheme £1.35m Trusts* Registration is required if turnover exceeded the limit in the previous 12 months or is predicted to Exemption 5,300 exceed the limit in the next 30 days. Rate 28% *For higher and additional rate taxpayers. stamp duty/stamp duty land tax Entrepreneurs’ Relief reduces the rate to 10% on qualifying disposals, subject toStamp duty is payable at 0.5% on transfers of shares and securities. Exemption a lifetime allowance of £10m (lower limits applied prior to 6 April 2011).from stamp duty for transfers where stamp duty is £5 or less or considerationis £1,000 or less. inheritance taxStamp duty land tax (SDLT) is due on full consideration paid.On the transfer of residential land, SDLT is payable at the following rates: 2012/13 and 2011/12 Nil rate band* £325,000£0 - £125,000 nil Rate of tax on balance:£125,001 - £250,000 1% Chargeable lifetime transfers 20%£250,001 - £500,000 3% Transfers on death 40%£500,001 - £1m 4% * A claim can be made to transfer any unused nil rate band of the deceased to the surviving spouse or£1,000,001 - £2m 5% registered civil partner. The amount will be expressed as a percentage and this percentage will beOver £2m* 7% applied to the band in use on the surviving spouse or civil partner’s death and added to their own nil* This rate applies for transactions with an effective date on or after 22 March 2012 and will be 15% rate band. for most corporate purchases. All lifetime transfers not covered by exemptions and made within seven years ofThere is no SDLT up to and including 5 April 2013 for transactions in death will become chargeable for the purpose of calculating the tax payable. Anydisadvantaged areas on all residential property unless consideration is greater tax due on the lifetime transfer may then be reduced by taper relief.than £150,000. 2012/13 and 2011/12Disadvantaged areas are based upon electoral ward and postcode; more details Annual exemption £3,000at www.hmrc.gov.uk/so/disadvantaged.htm Small gifts exemption £250On the transfer of non-residential land, SDLT is payable at the following rates: Business Property Relief£0 - £150,000 nil Business/interest in unquoted company 100%£150,001 - £250,000 1% Controlling interest in quoted company 50%£250,001 - £500,000 3% Land, buildings, machinery or plant used by theOver £500,000 4% transferor’s own company (controlling interest only) or partnership 50%No SDLT is charged on new ‘zero carbon’ homes/flats up to £500,000 and thereis a credit of £15,000 for homes/flats over £500,000. This relief only applies to Agricultural Property Relief (on agricultural value only) www.rsmtenon.comacquisitions before 1 October 2012. Owner occupied land and property 100%Lease duty is payable on new leases and is calculated by reference to the NPV Tenanted land and property with vacant possession 100% RSM Tenon Limited is a member of RSM Tenon Group.(Net Present Value) of all rental payments due under the terms of the lease. Agricultural land and property let on or after 1/9/95 100% RSM Tenon Group PLC is an independent member of the RSM International network.Non-residential properties up to £150,000 0% The RSM International network is a network of independent accounting and consulting firms over £150,000 1% each of which practices in its own right. RSM International is the brand used by the network which is not itself a separate legal entity in any jurisdiction.Residential properties up to £125,000 0% RSM Tenon Limited (No 4066924) is registered in England and Wales. Registered Office 66 Tax Rates 2012/13 over £125,000 1% The information in this tax card is based upon the 2012 Budget and earlier announcements Chiltern Street, London W1U 4GB. England. and may be subject to amendment by the Finance Act. MMH26380212
  • 7. value added tax capital gains taxStandard rate 20% 2012/13 and 2011/12 IndividualsVAT fraction 1/6 £Taxable turnover limits From 1.4.12Registration* £77,000 Exemption 10,600Deregistration next year under £75,000 Standard rate 18%Cash accounting scheme £1.35m Higher rate* 28%Annual accounting scheme £1.35m Trusts* Registration is required if turnover exceeded the limit in the previous 12 months or is predicted to Exemption 5,300 exceed the limit in the next 30 days. Rate 28% *For higher and additional rate taxpayers. stamp duty/stamp duty land tax Entrepreneurs’ Relief reduces the rate to 10% on qualifying disposals, subject toStamp duty is payable at 0.5% on transfers of shares and securities. Exemption a lifetime allowance of £10m (lower limits applied prior to 6 April 2011).from stamp duty for transfers where stamp duty is £5 or less or considerationis £1,000 or less. inheritance taxStamp duty land tax (SDLT) is due on full consideration paid.On the transfer of residential land, SDLT is payable at the following rates: 2012/13 and 2011/12 Nil rate band* £325,000£0 - £125,000 nil Rate of tax on balance:£125,001 - £250,000 1% Chargeable lifetime transfers 20%£250,001 - £500,000 3% Transfers on death 40%£500,001 - £1m 4% * A claim can be made to transfer any unused nil rate band of the deceased to the surviving spouse or£1,000,001 - £2m 5% registered civil partner. The amount will be expressed as a percentage and this percentage will beOver £2m* 7% applied to the band in use on the surviving spouse or civil partner’s death and added to their own nil* This rate applies for transactions with an effective date on or after 22 March 2012 and will be 15% rate band. for most corporate purchases. All lifetime transfers not covered by exemptions and made within seven years ofThere is no SDLT up to and including 5 April 2013 for transactions in death will become chargeable for the purpose of calculating the tax payable. Anydisadvantaged areas on all residential property unless consideration is greater tax due on the lifetime transfer may then be reduced by taper relief.than £150,000. 2012/13 and 2011/12Disadvantaged areas are based upon electoral ward and postcode; more details Annual exemption £3,000at www.hmrc.gov.uk/so/disadvantaged.htm Small gifts exemption £250On the transfer of non-residential land, SDLT is payable at the following rates: Business Property Relief£0 - £150,000 nil Business/interest in unquoted company 100%£150,001 - £250,000 1% Controlling interest in quoted company 50%£250,001 - £500,000 3% Land, buildings, machinery or plant used by theOver £500,000 4% transferor’s own company (controlling interest only) or partnership 50%No SDLT is charged on new ‘zero carbon’ homes/flats up to £500,000 and thereis a credit of £15,000 for homes/flats over £500,000. This relief only applies to Agricultural Property Relief (on agricultural value only) www.rsmtenon.comacquisitions before 1 October 2012. Owner occupied land and property 100%Lease duty is payable on new leases and is calculated by reference to the NPV Tenanted land and property with vacant possession 100% RSM Tenon Limited is a member of RSM Tenon Group.(Net Present Value) of all rental payments due under the terms of the lease. Agricultural land and property let on or after 1/9/95 100% RSM Tenon Group PLC is an independent member of the RSM International network.Non-residential properties up to £150,000 0% The RSM International network is a network of independent accounting and consulting firms over £150,000 1% each of which practices in its own right. RSM International is the brand used by the network which is not itself a separate legal entity in any jurisdiction.Residential properties up to £125,000 0% RSM Tenon Limited (No 4066924) is registered in England and Wales. Registered Office 66 Tax Rates 2012/13 over £125,000 1% The information in this tax card is based upon the 2012 Budget and earlier announcements Chiltern Street, London W1U 4GB. England. and may be subject to amendment by the Finance Act. MMH26380212
  • 8. value added tax capital gains taxStandard rate 20% 2012/13 and 2011/12 IndividualsVAT fraction 1/6 £Taxable turnover limits From 1.4.12Registration* £77,000 Exemption 10,600Deregistration next year under £75,000 Standard rate 18%Cash accounting scheme £1.35m Higher rate* 28%Annual accounting scheme £1.35m Trusts* Registration is required if turnover exceeded the limit in the previous 12 months or is predicted to Exemption 5,300 exceed the limit in the next 30 days. Rate 28% *For higher and additional rate taxpayers. stamp duty/stamp duty land tax Entrepreneurs’ Relief reduces the rate to 10% on qualifying disposals, subject toStamp duty is payable at 0.5% on transfers of shares and securities. Exemption a lifetime allowance of £10m (lower limits applied prior to 6 April 2011).from stamp duty for transfers where stamp duty is £5 or less or considerationis £1,000 or less. inheritance taxStamp duty land tax (SDLT) is due on full consideration paid.On the transfer of residential land, SDLT is payable at the following rates: 2012/13 and 2011/12 Nil rate band* £325,000£0 - £125,000 nil Rate of tax on balance:£125,001 - £250,000 1% Chargeable lifetime transfers 20%£250,001 - £500,000 3% Transfers on death 40%£500,001 - £1m 4% * A claim can be made to transfer any unused nil rate band of the deceased to the surviving spouse or£1,000,001 - £2m 5% registered civil partner. The amount will be expressed as a percentage and this percentage will beOver £2m* 7% applied to the band in use on the surviving spouse or civil partner’s death and added to their own nil* This rate applies for transactions with an effective date on or after 22 March 2012 and will be 15% rate band. for most corporate purchases. All lifetime transfers not covered by exemptions and made within seven years ofThere is no SDLT up to and including 5 April 2013 for transactions in death will become chargeable for the purpose of calculating the tax payable. Anydisadvantaged areas on all residential property unless consideration is greater tax due on the lifetime transfer may then be reduced by taper relief.than £150,000. 2012/13 and 2011/12Disadvantaged areas are based upon electoral ward and postcode; more details Annual exemption £3,000at www.hmrc.gov.uk/so/disadvantaged.htm Small gifts exemption £250On the transfer of non-residential land, SDLT is payable at the following rates: Business Property Relief£0 - £150,000 nil Business/interest in unquoted company 100%£150,001 - £250,000 1% Controlling interest in quoted company 50%£250,001 - £500,000 3% Land, buildings, machinery or plant used by theOver £500,000 4% transferor’s own company (controlling interest only) or partnership 50%No SDLT is charged on new ‘zero carbon’ homes/flats up to £500,000 and thereis a credit of £15,000 for homes/flats over £500,000. This relief only applies to Agricultural Property Relief (on agricultural value only) www.rsmtenon.comacquisitions before 1 October 2012. Owner occupied land and property 100%Lease duty is payable on new leases and is calculated by reference to the NPV Tenanted land and property with vacant possession 100% RSM Tenon Limited is a member of RSM Tenon Group.(Net Present Value) of all rental payments due under the terms of the lease. Agricultural land and property let on or after 1/9/95 100% RSM Tenon Group PLC is an independent member of the RSM International network.Non-residential properties up to £150,000 0% The RSM International network is a network of independent accounting and consulting firms over £150,000 1% each of which practices in its own right. RSM International is the brand used by the network which is not itself a separate legal entity in any jurisdiction.Residential properties up to £125,000 0% RSM Tenon Limited (No 4066924) is registered in England and Wales. Registered Office 66 Tax Rates 2012/13 over £125,000 1% The information in this tax card is based upon the 2012 Budget and earlier announcements Chiltern Street, London W1U 4GB. England. and may be subject to amendment by the Finance Act. MMH26380212