United Kingdom

Details

  • Service: Tax, Corporate Tax, Budget 2014
  • Type: Business and industry issue, Regulatory update
  • Date: 19/03/2014

Key Measure: Tax Policy - tax rates 

Key Measure: Tax Policy - tax rates
The rate of corporation tax for profits other than ring fence profits falls to 21% in April 2014 (before being unified with the small profits rate at 20% in April 2015).

The income tax personal allowance increases to £10,000 from 6 April 2014 for those born after 5 April 1948.

 

Broadly, income over the personal allowance is taxed at the following rates:

 

  • Basic rate (up to £31,865 over the personal allowance) – 20%
  • Higher rate (£31,866 to £150,000) – 40%
  • Additional rate (over £150,000) – 45%

 

Looking forward, the Chancellor has announced that the income tax personal allowance will rise to £10,500 from 6 April 2015, and the level at which higher rate tax will be paid will be set at £31,785.

 

From 6 April 2015 the starting rate of tax on savings income will be reduced from 10% to 0%, and the maximum amount of income subject to the 0% rate will be increased to £5,000.

 

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Chris Morgan

Chris Morgan

Head of Tax Policy

KPMG in the UK

020 7694 1714

Email Chris