Today marks the start of the 2013/14 tax year. Happy New Tax Year!
The start of a new tax year is as important from a Financial Planning perspective as its end.
Here are a few of the main facts and figures you need to know for the 2013/14 tax year.
The top rate of income tax has fallen today from 50% to 45%, which will benefit people with income over £150,000.
The income tax threshold for those paying income tax at 40% has fallen to £41,450, making an additional 400,000 higher rate taxpayers in 2013/14.
The income tax personal allowance for those under age 65 has risen from £8,105 to £9,440.
It remains static at £10,500 and £10,660 for those aged 65-75 and 75 and over respectively. Read our blog here about the granny tax.
The capital gains tax annual exempt amount rises from £10,600 to £10,900. For most trustees it rises from £5,300 to £5,450.
The inheritance tax nil rate band remains static for the 2013/14 at £325,000.
Pension allowances also remain the same in 2013/14, at £50,000 for the annual allowance and £1,500,000 for the lifetime allowance.
The annual allowance falls to £40,000 on 6th April 2014 and £1,250,000 for the lifetime allowance on the same date.
For Individual Savings Accounts (ISAs), the annual subscription increase rises from £11,280 to £11,520 for 2013/14.
The Junior ISA subscription limit becomes £3,720 in 2013/14, up from £3,600.
Do get in touch to discuss your Financial Planning in the 2013/14 tax year, and to find out how we can help you to make best use of your available tax allowances this year.
