Resources
Home 
Resource Centre 
Tax Tables
Income Tax Rates
Income Tax Allowances, Reliefs and Credits
|
2013/14 |
2012/13 |
Given at marginal rate of income tax |
||
Personal allowance (minimum) |
9,440 |
8,105 |
Personal allowance (age 65-74) |
10,500 |
10,500 |
Personal allowance (age 75+) |
10,660 |
10,660 |
|
||
Blind Person's Allowance |
2,160 |
2,100 |
|
||
Rent-a-room tax free home income* |
4,250 |
4,250 |
|
||
Relief restricted to 10% |
|
|
Married couples/Civil partnerships allowance (age under 75 and born before 6th April 1935) |
N/A |
N/A |
Married couples/Civil partnerships allowance (age 75+) |
7,915 |
7,705 |
Married couples/Civil partnerships allowance (minimum) |
3,040 |
2,960 |
Income limit for age-related allowances |
25,400 |
25,400 |
Personal allowances progressively reduced £1 for £2 income above £100,000 |
||
|
|
|
Child Tax Credit (CTC) |
|
|
Family element |
545 | 545 |
Child element |
2,720 | 2,690 |
Disabled child element |
3,015 | 2,950 |
Severely disabled child element |
1,220 | 1,190 |
|
|
|
Working Tax Credit (WTC) |
|
|
Basic element |
1,920 | 1,920 |
Couples & lone parent element |
1,970 | 1,950 |
30 hour element |
790 | 790 |
Disabled worker element |
2,855 | 2,790 |
Severe disability element |
1,220 | 1,190 |
|
|
|
Childcare Element of WTC |
|
|
Maximum eligible cost for one child |
£175 per week |
£175 per week |
Maximum eligible cost for two or more children |
£300 per week |
£300 per week |
Percentage of eligible costs covered |
70% |
70% |
Withdrawal Rates for CTC & WTC |
|
|
First income threshold |
6,420 | 6,420 |
First income threshold for CTC only |
15,910 | 15,860 |
First withdrawal rate |
41% |
41% |
Second income threshold |
40,000 |
40,000 |
Second withdrawal rate |
41% | 41% |
Income increase disregarded |
5,000 | 10,000 |
Income decrease disregarded |
2,500 | 2,500 |
|
|
|
Universal Credit is a new single monthly payment for people in work or out of work. It will be made up of a standard allowance plus other 'elements' - for example for children, childcare, housing and caring. There will also be an element for those with limited capability for work. If you qualify, your monthly payment will cover everyone in your family who qualifies for support. 'Family' could mean you as a single person for example, or you might also be claiming for a partner and/or children. How will tax credits and other benefits be affected? |
||
How will tax credits and other benefits be affected? |
||
Universal Credit will eventually replace all of the following:
Universal Credit won't replace Child Benefit. Universal Credit will start in April 2013 in the Greater Manchester and Cheshire regions. It will be rolled out across the country from October 2013. Wherever you live, you don’t need to do anything until the Tax Credit Office tells you to. The Tax Credit Office will tell you when you can make a claim for Universal Credit, and stop claiming tax credits. You won't claim both at the same time. It will take up to four years before all tax credits claims are stopped. |
||
|
|
|
Limits for other reliefs |
|
|
Enterprise Investment Scheme (EIS) |
30% |
30% |
Maximum Investment |
1000,000 |
1000,000 |
EIS capital gains re-investment |
Unlimited |
Unlimited |
|
|
|
Seed Enterprise Investment Scheme (SEIS) |
|
|
Maximum Investment |
100,000@50% |
100,000@50% |
|
|
|
Venture Capital Trusts (VCT) @ 30% |
|
|
Maximum Investment |
200,000 |
200,000 |
|
|
|