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In this document you will find:

• Capital Allowances
• Capital Gains Tax
• Car And Fuel Benefits
• Charitable Gifts
• Corporation Tax
• Fuel Rates
• Income Tax Allowances
• Income Tax Bands & Rates
• Individual Savings Accounts
• Inheritance Tax
• Key Tax Dates
• Minimum Wage
• National Insurance
• Pension Premiums
• Social Security Benefits
• Stamp Duty
• Tax Credits & Child Benefit
• Tax Free Mileage Allowances
• Tax Shelters
• Value Added Tax
• Van Benefits

Capital Allowances

	Allowance 2012/13
Plant and machinery
Main rate pool: - expenditure up to £25,000 - First Year - expenditure over £25,000 - subsequent years writing down allowance	100% (1) 18% 18%
Special rate pool (long life assets, integral features): - expenditure up to £25,000 - First Year - expenditure over £25,000 - First Year - subsequent writing down allowance	100% (1) 8% 8%
Energy saving plant and machinery	100% (2)
Motor cars
New cars with CO2 emission not exceeding 95gm/km	100%(3)
Cars with C02 emission over 130gm/km - writing down allowance	10% (3)
Cars with C02 emission of 130gm/km or less (added to main plant pool) - writing down allowance	18% (3)
Cars acquired prior to April 2009 - writing down allowance	18% - max £3,000 (3)
Research & development
Large Companies	130%
SME's	225%
Intangible assets for companies	Amortisation per accounts or 4%
Disadvantaged Areas Business Premises Renovation allowance	100%

Capital allowances write off the cost of capital assets against taxable profits. They are used instead of the depreciation in the accounts, which is not allowable as a tax deduction.

(1) For accounting periods shorter or longer than 1 year the £25,000 limit is pro-rata. There is a single £25,000 AIA limit for groups of companies and there is "anti-fragmentation" rules for "related" companies and businesses under common control. The AIA limit can be allocated between companies as they wish.

(2) Companies that make losses attributable to 100% first year allowances on designated energy saving or environmentally beneficial plant and machinery can surrender the loss in exchange for the first year tax credit equal to 19% of the loss surrendered subject to a maximum of the greater of £250,000 or the company's total PAYE and NIC liability for the period concerned.

(3) The distinction between cars that cost more and less than £12,000 ended on 1 April 2009 for companies and 6 April 2009 for unincorporated businesses. From this date cars will be put into one of two general plant pools, those over 130g/km added to a special rate 10% pool and those at or below 130gm/km will go into the main plant pool. Cars with private usage will still be held in individual pools but the rate determined by these criteria. For expenditure on cars before April 2009, there is a 5 year transitional period where they will continue to be subject to the existing expensive car rules. Prior to these dates there was a 20% writing down allowance subject to a maximum of £3000p.a.

Capital Gains Tax

Annual exempt amount	2012-13 (£)	2011-12 (£)
Individuals etc*	10,600	10,600
Other trustees (spread between each trust)	5,300	5,300

*Individuals, trustees of settlements for the disabled, and personal representatives of the estate of a deceased person.

	2012-13 (£)	2011-12 (£)
Standard Rate of tax	18%	18%
Higher rate	28%	28%
Entrepreneurs' Relief - effective rate	10%	10%
Entrepreneurs' Relief lifetime limit	£10million	£10million

Entrepreneurs' relief is available on qualifying lifetime gains on or after 6th April 2008.

** The higher rate applies to higher and additional rate taxpayers.

Transfers between husband and wife or civil partners that live together are exempt.

Car And Fuel Benefits

The following rates apply for 2012/13.

CO2 emissions grams per kilometre	Petrol	Diesel
	% of list price
1 - 75	5	8
76 - 99	10	13
100-104	11	14
105-109	12	15
110-114	13	16
115-119	14	17
120-124	15	18
125-129	16	19
130-134	17	20
135-139	18	21
140-144	19	22
145-149	20	23
150-154	21	24
155-159	22	25
160-164	23	26
165-169	24	27
170-174	25	28
175-179	26	29
180-184	27	30
185-189	28	31
190-194	29	32
195-199	30	33
200-204	31	34
205-209	32	35
210-215	33	35
215-219	34	35
220 and above	35	35

To find the CO2 figure for your car, you can...

• visit the Vehicle Certification Agency www.vca.gov.uk
• inspect the car's V5 registration document
• ask your dealer
• look at the data pages of car magazines

For cars registered from 1 January 1998 with no CO2 emissions figures, the tax charge is 15% of the list price for engines up to 1,400 cc, 22% for engines of 1,401 cc to 2,000 cc and 32% for engines above 2,000 cc.

Where cars have zero CO2 emissions in all circumstances, the car benefit charge is reduced to zero.

List price is reduced for capital contributions made by the employee up to £5,000.

Employee contributions reduce the taxable benefit by the amount paid.

There are various discounts on the percentages for car driven on alternative fuels

Fuel Benefits

The car fuel benefit is calculated by applying the above car benefit percentage to a figure of £20,200 (2011/12 - £18,800).

The fuel benefit charge is proportionately reduced if provision of private fuel ceases part way through the year.

The fuel benefit is reduced to nil only if the employee pays for all private fuel.

Charitable Gifts

Gift Aid

Individuals can claim higher and additional rate relief on cash gifts and payments to charities using gift aid. It allows a charity to reclaim the basic-rate tax on donations made by UK taxpayers from HMRC. Higher and additional rate taxpayers can claim an additional tax relief on the gross donation through their tax return at their marginal rate.

You can make a claim for a charitable donation made in one tax year to be treated as if it had been made in the previous tax year.

To qualify for gift aid you must pay at least as much tax as the amount the charities will reclaim on your gifts in the tax year in which you make them. You must make a declaration to the charity concerned.

Give As You Earn

Give As You Earn allows employees to make regular donations tax-free from their gross salary. The employer will deduct the amount from their salary for payment to the charity.

The taxable pay of the employee is reduced by the amount of their donation.

Corporation Tax

Corporation Tax On Profits - £ per year (unless stated)

Rate	Financial Year to 31/3/2013	Financial Year to 31/3/2012
Small companies rate	20% on first 300,000	20% on first 300,000
Marginal relief	300,001 - 1,500,000	300,001 - 1,500,000
Marginal relief fraction	1/100	3/200
Effective marginal rate	25%	27.5%
Main rate	24% on 1,500,001 or more	26% on 1,500,001 or more

The profits limits are reduced for accounting periods of less than 12 months and for a company with associated companies.

It has been announced the main companies rate will decrease to 22% from 1st April 2014.

Fuel Rates

From 1st March 2012*

	Petrol	LPG
Up to 1400cc	15p	10p
1401cc to 2000cc	18p	12p
Over 2000cc	26p	18p

	Diesel
Up to 1600cc	13p
1601cc to 2000cc	15p
Over 2000cc	19p

From 1st December 2011*

	Petrol	LPG
Up to 1400cc	15p	10p
1401cc to 2000cc	18p	12p
Over 2000cc	26p	18p

	Diesel
Up to 1600cc	12p
1601cc to 2000cc	15p
Over 2000cc	18p

*Rates per mile

Income Tax Allowances

	2012-13 (£)	2011-12 (£)
Personal allowance (1)	8,105	7,475
Personal allowance for people aged 65-74 at the end of year of assessment (1)(2)	10,500	9,940
Personal allowance for people 75 and over at the end of year of assessment (1)(2)	10,660	10,090
Income limit for age-related allowances	25,400	24,000
Married couple's allowance - aged 75 or more (relief at 10%) (2)	7,705	7,295
Minimum amount of married couple's allowance	2,960	2,800
Blind person's allowance	2,100	1,980

(1) The personal allowance is reduced for individuals with a gross income before the allowance of £100,000. The allowance will be reduced by £1 for every £2 of gross income above the income limit up to a maximum reduction down to zero. This applies irrespective of age.

(2) These allowances are reduced where the income is above the income limit by £1 for every £2 of income above the limit but will never be less than the personal allowance or minimum amount of married couple's allowance.

Income Tax Bands & Rates

2012-13		2011-12
Taxable Bands(£)	Rate	Taxable Bands(£)	Rate
0 - 2,710	10%*	0 - 2,560	10%*
2,711-34,370	20%**	2,561-35,000	20%**
34,371-150,000	40%***	35,001-150,000	40%***
Over 150,000	50%****	Over 150,000	50%****

* Only applies to savings income (otherwise is 20%)

** Dividends taxed at 10%

*** Dividends taxed at 32.5% of the gross dividend

**** Dividends taxed at 42.5% of the gross dividend

Other income is taxed first, then savings and then dividends.

Individual Savings Accounts

Annual exempt amount	Overall Limit (£)	Cash Limit (£)
2012/13	11,280	5,640
2011/12	10,680	5,340

Savings are exempt from income tax and capital gains tax.

Anyone aged 16-17 can invest in a cash ISA only up to the cash limit above.

Junior ISA's are available for those under 18 to invest up to £3,600.

Inheritance Tax

Inheritance Tax Thresholds

Year	Amount (£)
2012-13	325,000
2011-12	325,000

The IHT threshold is to be frozen at £325,000 until 2014/15.

For deaths after 9th October 2007, a transfer of any unused nil rate band is available from former deceased spouses and civil partners.

Amounts above the threshold are taxed at 40%.

Most transfers between spouses and civil partners are exempt.

Chargeable lifetime transfers are initially charged at 20%.

Business Property Relief

• Business, interest in business or qualifying shareholders in unquoted companies (includes AIM listed companies) - 100%
• Land, buildings, machinery, or plant used in a company controlled by the transferor - 50%
• Agricultural property - 50% or 100%

Other Reliefs:

• Annual gifts of up to £3000 per donor are exempt.
• Small gifts £250
• Marriage gifts...
  • parent £5,000
  • grandparent £2,500
  • bride/groom £2,500
  • other £1,000

Reduced charge on gifts made within seven years of death:

Years before death	0-3	3-4	4-5	5-6	6-7
% of death charge	100	80	60	40	20

Key Tax Dates

Income Tax and Class 4 NIC

• 31 July 2012 - 2nd payment on account for 2011/12
• 31 Jan 2013 - balancing payment for 2011/12 and 1st payment on account for 2012/13
• 31 July 2013 - 2nd payment on account for 2012/13
• 31 Jan 2014 - balancing payment for 2012/13 and 1st payment on account for 2013/14

Tax Return

• 31 October 2012 - Filing deadline for 2012 paper return
• 31 January 2013 - Filing deadline for 2012 online return

Capital Gains Tax

• 31 January 2013 - CGT payment due for 2011/12
• 31 January 2014 - CGT payment due for 2012/13

Inheritance Tax

Payment due 6 months after the end of the month of death or chargeable transfer.

For chargeable lifetime transfers from 6 April to 30 September, payment is due by 30 April in the following tax year.

Corporation Tax

Payment due 9 months and one day after the end of the accounting period. Accounts longer than 12 months are divided into two periods.

2011/12 PAYE Return Deadlines

• 19 May 2012 - P35, P14, P38, P38A and CIS36
• 31 May 2012 - P60s to employees
• 6 July 2012 - P11D, P11Db and P9D - and give copies to employees
• 19 July 2012 - Payment of Class 1A National Insurance on benefits due or 22nd July 2012 for electronic payments

Minimum Wage

	From 1 October 2012	From 1 October 2011
21 & over	£6.19 p.h.	£6.08 p.h.
18 to 20	£4.98 p.h.	£4.98 p.h.
16 and 17	£3.68 p.h.	£3.68 p.h.
Apprentice rate	£2.65 p.h.	£2.60 p.h.

National Insurance

£ per week	2012-13	2011-12
Employees
Lower earnings limit, primary Class 1	£107	£102
Upper earnings limit, primary Class 1	£817	£817
Upper accruals point (for those on contracted out pensions)	£770	£770
Primary threshold (employees)	£146	£139
Secondary threshold (employers)	£144	£136
Employees' primary Class 1 rate between primary threshold and upper earnings limit	12%	12%
Employees' primary Class 1 rate above upper earnings limit	2%	2%
Employees' contracted out rebate	1.4%	1.6%
Married women's reduced rate between primary threshold and upper earnings limit	5.85%	5.85%
Married women's rate above upper earnings limit	2%	2%
Employers' secondary Class 1 rate above secondary threshold	13.8%	13.8%
Employers' contracted-out rebate, salary-related schemes	3.4%	3.7%
Employers' contracted-out rebate, money-purchase schemes	Abolished from 6.4.12	1.4%
Rates are nil for those over state retirement age. Normal employers' contributions are still payable.
Class 1A and Class 1B	13.8%	13.8%
Class 2 rate (self-employed)	£2.65	£2.50
Class 2 small earnings exception	£5,595 per year	£5,315 per year
Special Class 2 rate for share fishermen	£3.30	£3.15
Special Class 2 rate for volunteer development workers	£5.35	£5.10
Class 3 rate (voluntary contributions)	£13.25	£12.60
Class 4 lower profits limit (self-employed)	£7,605 per year	£7,225 per year
Class 4 upper profits limit (self-employed)	£42,475 per year	£42,475 per year
Class 4 rate between lower profits limit and upper profits limit	9%	9%
Class 4 rate above upper profits limit	2%	2%
There is no Class4 payable if the state retirement age was reached by 6 April 20112

NIC Holiday

Some businesses will be exempt from paying the employer's class 1 NICs for 12 months for up to 10 employees, capped at £5,000 per employee. The scheme started in September 2010 but will apply to new businesses set up on and after 22 June 2010. It will only apply in Scotland, Wales, Northern Ireland, the North of England, Yorkshire, the Midlands and the South West regions. Certain businesses are excluded, such as those under the IR35 or Managed Service Company rules, and businesses in grant-supported sectors such as agriculture, fisheries and coal.

Pension Premiums

For 2012/13...

• Maximum amount of pension contributions that qualify for tax relief is the greater of £3,600 or the individuals UK relevant earnings.
• An annual allowance is set at £50,000 for the Pension Input Period ending in the tax year. Contributions in excess of the allowance are charged to tax at the top slice of income. Contributions also include those made by the employer.
• Unused annual allowances of up to £50,000 can be carried forward for the next three years. When considering if there is any unused allowance from 2009/10, 2010/11 and 2011/12 the annual allowance for those years will be deemed to be £50,000.
• Employer contributions need to be "wholly and exclusively" for the benefit of the trade to obtain tax relief.
• Minimum age for taking benefits is 55. Was 50 Prior to 6 April 2010.
• Maximum age for tax relief on contributions is 74.
• Lifetime allowance is £1,500,000.(£1,8,000,000 2011/12)
• There is a tax charge of 55% on the excess value above the lifetime allowance if the excess if taken as a lump sum and 25% on monies retained.
• Maximum tax-free lump sum is 25%.

Social Security Benefits

Weekly Benefit	2012-13	2011-12
Basic retirement pension - single person	£107.45	£102.15
Basic retirement pension - married couple	£171.85	£163.35
Statutory pay rates - average weekly earnings £95 or over
Statutory Sick Pay	£85.85	£81.60
Statutory Maternity Pay - first six weeks	90% of weekly earnings
Statutory Maternity Pay - next 33 weeks	£135.45*	£128.73*
Statutory Paternity Pay - 2 weeks	£135.45*	£128.73*
Statutory Adoption Pay - 39 weeks	£135.45*	£128.73*
Jobseekers Allowance - Single Person (over 25)	£71.00	£67.50
Jobseekers Allowance - Married Couple	£111.45	£105.95

* Or 90% of weekly earnings if this is lower

Stamp Duty

The following rates apply for 2012/13.

Stamp Duty Land Tax

The applicable rate of Stamp Duty Land Tax must be applied to the whole of the consideration paid to acquire the land / buildings.

	Land and Buildings in the UK
Rate	Residential	Non-residential
Zero	£0 to £125,000	£0 to £150,000
1%	£125,000+ to £250,000*	£150,000+ to £250,000
3%	£250,000+ to £500,000	£250,000+ to £500,000
4%	£500,000+ to £1,000,000	Over £500,000
5%	£1,000,000+to £2,000,000
7%	Over £2,000,000
15%	Over £2,000,000 bought through a company

For disadvantaged areas, sales of land and buildings up to £150,000 are exempt.

Zero Carbon Homes

From 1 October 2007 until 30 September 2012 all new zero carbon homes and flats costing up to £500,000 are exempt from stamp duty land tax. Homes and flats above this have the first £500,000 exempt. This only applies to new homes which have SDLT on the first sale.

New leases (lease duty)

Duty on rent

	Net present value of rent
Rate	Residential	Non-residential
Zero	£0 to 125,000	£0 to £150,000
1%	£125,000+	£150,000+

Please note that when calculating duty payable on the 'NPV' (Net Present Value) of leases, you must reduce your 'NPV' calculation by the following before applying the 1% rate.

Residential - £125,000
Non-Residential - £150,000

Duty on premium is the same as for transfers of land (except special rules apply for premium on non-residential properties where the rent exceeds £1,000 annually).

Stamp Tax

The rate of stamp duty / stamp duty reserve tax for the transfer of shares and securities is 0.5%. Where the consideration is £1,000 or less on the transfer of shares, they will be exempt from stamp duty.

Tax Credits & Child Benefit

Working Tax Credit - £ per year (unless stated)

Rates and Thresholds	2012-13	2011-12
Basic element	1,920	1,920
Couple and lone parent element	1,950	1,950
30 hour element	790	790
Disabled worker element	2,650	2,650
Severe disability element	1,190	1,130
50+ Return to work payment (16-29 hours)	Withdrawn	1,365
50+ Return to work payment (30+ hours)	Withdrawn	2,030

Childcare Element of the Working Tax Credit - £ per year (unless stated)

Rates and Thresholds	2012-13	2011-12
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%

Child Tax Credit - £ per year (unless stated)

Rates and Thresholds	2012-13	2011-12
Child Tax Credit Family element	545	545
Child element	2,690	2,555
Disabled child element	2,950	2,800
Severely disabled child element	1,190	1,130

Income thresholds and withdrawal rates - £ per year (unless stated)

Rates and Thresholds	2012-13	2011-12
First income threshold	6,420	6,420
First withdrawal rate (per cent)	41%	41%
Second income threshold	Withdrawn	40,000
Second withdrawal rate (per cent)	N/A	41%
First threshold for those entitled to Child Tax Credit only	15,860	15,860
Income disregard	10,000	10,000
Income fall disregard	2,500

Child Benefit/Guardian Allowance - £ per week

Rates and Thresholds	2012-13	2011-12
Eldest/Only Child	20.30	20.30
Other Children	13.40	13.40
Guardian's Allowance	15.55	14.75

From 7 January 2013 tax payers with income of over £50,000 will have their Child Benefit restricted.

This will be administered as an income tax charge on the person earning over £50,000.

The income tax charge will apply at a rate of one per cent of the full Child Benefit for each £100 of income between £50,000 and £60,000. The charge on taxpayers with income above £60,000 will be equal to the amount of Child Benefit paid.

Where both partners earn over £50,000 it is the partner with the highest income who will be subject to the charge.

Tax Free Mileage Allowances

Rates for 2012/13

	First 10,000 business miles in the tax year	Each mile over 10,000 miles in the tax year	Extra passenger making same trip
Cars and vans	45p	25p	5p
Motor cycles	24p	24p	N/A
Bicycles	20p	20p	N/A

These rates represent the maximum tax-free mileage allowances for employees using their own vehicles for business. Any excess is taxable. If the employee receives less than the statutory rate, tax relief can be claimed on the difference.

Tax Shelters

	2012-13 (£)	2011-12 (£)
Enterprise Investment Scheme (EIS) up to (Income tax relief is 30% & CGT deferral relief also available)	1,000,000	500,000
Seed Enterprise Investment Scheme (SEIS ) up to (Income tax relief is 50% and CGT relief is 18% or 28%)	100,000	N/A
Venture Capital Trust (VCT ) up to (Income tax relief of VCT's is at 30%)	200,000	200,000
Golden Handshake maximum	30,000	30,000
Rent a Room - exempt on gross annual rent up to	4,250	4,250

Value Added Tax

Standard Rate	20.0%
VAT Fraction	1/6
Lower rate	5%
	From 1/4/12	From 1/4/11
Registration level	£77,000 p.a.	£73,000 p.a.
Deregistration limit	£75,000 p.a.	£71,000 p.a.
Cash accounting scheme - up to	£1,350,000	£1,350,000
Optional flat rate scheme - up to	£150,000	£150,000
Annual accounting scheme - up to	£1,350,000	£1,350,000

VAT fuel scale charges from 1/5/11

CO2 band	Scale charge per quarter £	VAT on quarterly charge £
124 or below	157	26.13
125 - 129	236	39.33
130 - 134	252	42.00
135 - 139	268	44.67
140 - 144	283	47.17
145 - 149	299	49.83
150 - 154	315	52.50
155 - 159	331	55.17
160 - 164	346	57.67
165 - 169	362	60.33
170 - 174	378	63.00
175 - 179	394	65.67
180 - 184	409	68.17
185 - 189	425	70.83
190 - 194	441	73.50
195 - 199	457	76.17
200 - 204	472	78.67
205 - 209	488	81.33
210 - 214	504	84.00
215 - 219	520	86.07
220 - 224	536	89.33
225 and above	551	91.83

VAT fuel scale charges from 4/1/11 to 30/4/11

CO2 band	Scale charge per quarter £	VAT on quarterly charge £
124 or below	141	23.50
125 - 134	212	35.33
135 - 139	227	37.83
140 - 144	241	40.17
145 - 149	255	42.50
150 - 154	269	44.83
155 - 159	283	47.17
160 - 164	297	49.50
165 - 169	312	52.00
170 - 174	326	54.33
175 - 179	340	56.77
180 - 184	354	59.00
185 - 189	368	61.33
190 - 194	383	63.83
195 - 199	397	66.17
200 - 204	411	68.50
205 - 209	425	70.83
210 - 214	439	73.17
215 - 219	454	75.67
220 - 224	468	78.00
225 - 229	482	80.33
230 and above	496	82.67

Van Benefits

2012/13 and 2011/12

The taxable benefit for private use of a company van that is more than home to work travel is £3,000. For 5 years from 2010/11 this is reduced to nil for vans which cannot produce CO2 emissions under any circumstances.

The taxable benefit for fuel provided for private use is £550.