Tax allowances 2014/15

Published:
18 March 2014
Topic:
News,Money,Savings

Want to know what your tax allowances will be for the 2014/15 tax year? Then check out our easy to read guide for all the information you'll need. 

ISAs

 

Until 
April 5 2014

From 
April 6 2014

 Change

Annual allowance

£11,520

£11,880

+ £360

Cash element

£5,760

£5,940

+ £180

Junior ISA allowance

£3,720

£3,840

+£120

Child Trust Fund
allowance

£3,720

£3,840

+£120

From July 1, 2014 you will be able to hold £15,000 in a New ISA (NISA) and there will be no distinction between cash and stocks and shares ISAs. The junior ISA (JISA) threshold will rise to £4,000 from July 1, 2014 but you'll still have to wait until April 6, 2015 if you want to transfer a Child Trust Fund (CTF) into a JISA.

Inheritance Tax

 

2013-2014

2014-2015

Change

Personal allowance

£325,000

£325,000

£0

Couple's allowance

£650,000

£650,000

£0

Capital gains tax allowance

 

2013-2014

2014-2015

Change

Individuals

£10,900

£11,000

+£100

Changes were made to the rate at which Capital Gains Tax (CGT) is paid in the coalition government's Emergency Budget in 2010. The rates of CGT remain at 18% for non and basic rate taxpayers, while higher and additional rate taxpayers, as well as most trusts, will pay at a rate of 28%.

The CGT allowance will increase by £100 to £11,00 for the 2014-15 tax year, and by another £100, to £11,100 for the 2015-16 tax year.

Pension Scheme - Personal Allowance

 

2013-2014

2014-2015

 Change

Annual allowance

£50,000

£40,000

£-10,000

Lifetime allowance

£1,500,000

£1,250,000

£-250,000

As of April 6, 2012 the lifetime allowance for pension savings was reduced by £300,000 from £1.8million to £1.5million. From April 6, 2014 this will be cut again to £1.25million.

For any pension scheme members who have already built up savings in excess of £1.25 million, or have planned to do so as they were unaware that the lifetime allowance would not reduce from the current level, there will be a new form of protection called 'fixed protection'. 

Income Tax - Personal Allowances

 

2013-2014

 2014-2015

 Change

Those born after April 5, 1948*

£9,440

 £10,000

+£560

Those born between April 6, 1938 and
April 5, 1948*

£10,500

£10,500 

£0

Those born before April 6, 1938

£10,660

£10,660 

£0

 Married couple's allowance* ^ (for people born before April 6, 1935) maximum allowance

£7,915

£8,165 

+£250

Married couple's allowance^ (minimum amount)

£3,040

 £3,140

+£100

 Income limit for age-related allowances

£26,100

£27,000 

+£900

Blind person's allowance

£2,160

£2,230

+£70

These allowances may be lower depending on your income. As of 2013-14, an individual's personal allowance will based upon date of birth and income in the tax year. For more information on how age-related allowances work, click here.

From April 6, 2015, the personal allowance for those born after April 5, 1948 will rise to £10,500.

Married couple's allowance is given at the rate of 10%. It applies to couples where at least one spouse was born before April 6 1935.

Income: Taxable bands

 

2013-2014

2014-2015

Basic Rate 20%

£0 - £32,010

£0 - £31,865

 Higher Rate 40%

£32,011 - £150,000

£31,866 - £150,000

 Additional Rate 45%

Over £150,000

 Over £150,000

Rates are on taxable earnings

Stamp Duty

Rate

Residential

Non-residential

Total value of consideration

Zero

£0 - £125,000

£0 - £150,000 (annual rent is less than £1,000)

1%

£125,001 - £250,000

0% - £150,000 (when annual rent is more than £1,000)
Over £150,000 - £250,00

3%

£250,001 - £500,000

Over £250,001 - £500,000

4%

£500,001 to £1million

Over £500,000

5%

 Over £1million to £2million

 N/A

7%

Over £2million

N/A

15%

Over £500,000 bought by
corporate bodies

N/A

Disadvantaged Areas relief was abolished for transactions with an effective date on or after April 6, 2013. For more details, click here.

HM Revenue and Customs (HMRC) has SDLT calculators you can use to work out how much to pay.

Source: HMRC

Check out our article Budget 2014 at a glance for a breakdown of the Budget.

Please note: Any rates or deals mentioned in this article were available at the time of writing. Click on a highlighted product and apply direct.

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