Value Added Tax
| From | 1 April 2013 |
|---|---|
| Standard rate | 20% |
| VAT fraction | 1/6 |
| Reduced rate | 5% |
| Taxable Turnover Limits | |
| Registration - last 12 months or next 30 days over | £79,000 from 1 April 2013 |
| Deregistration - next 12 months under | £77,000 from 1 April 2013 |
| Cash accounting scheme - up to | £1,350,000 |
| Optional flat rate scheme - up to | £150,000 |
| Annual accounting scheme - up to | £1,350,000 |
VAT on fuel for private use in cars
Where businesses wish to reclaim the input VAT on fuel which has some degree of private use, they must account for output VAT on a scale charge.
The table shows the VAT chargeable for quarters commencing on or after 1 May 2013.
| CO2 emissions (g/km) |
Quarterly VAT | |
|---|---|---|
| Fuel scale charge £ |
VAT on charge £ |
|
| Zero | 168 | 28.00 |
| Up to 75 | 168 | 28.00 |
| 76-94 | 168 | 28.00 |
| 95 - 99 | 168 | 28.00 |
| 100 - 104 | 168 | 28.00 |
| 105 - 109 | 168 | 28.00 |
| 110 - 114 | 168 | 28.00 |
| 115 - 119 | 168 | 28.00 |
| 120 - 124 | 168 | 28.00 |
| 125 - 129 | 253 | 42.17 |
| 130 - 134 | 269 | 44.83 |
| 135 - 139 | 286 | 47.67 |
| 140 - 144 | 303 | 50.50 |
| 145 - 149 | 320 | 53.33 |
| 150 - 154 | 337 | 56.17 |
| 155 - 159 | 354 | 59.00 |
| 160 - 164 | 371 | 61.83 |
| 165 - 169 | 388 | 64.67 |
| 170 - 174 | 404 | 67.33 |
| 175 - 179 | 421 | 70.17 |
| 180 - 184 | 438 | 73.00 |
| 185 - 189 | 455 | 75.83 |
| 190 - 194 | 472 | 78.67 |
| 195 - 199 | 489 | 81.50 |
| 200 - 204 | 506 | 84.33 |
| 205 - 209 | 523 | 87.17 |
| 210 - 214 | 539 | 89.83 |
| 215 - 219 | 556 | 92.67 |
| 220 - 224 | 573 | 95.50 |
| 225 and above | 590 | 98.33 |
Inheritance Tax
| 2013/14 | 2012/13 | |
|---|---|---|
| Standard threshold | £325,000 | £325,000 |
| Combined threshold maximum for married couples and civil partners | £650,000 | £650,000 |
| Rate of tax on balance: | ||
| Chargeable lifetime transfers Transfers on, or within 7 years of, death |
20% *40% |
20% *40% |
| * A lower rate of 36% applies where 10% or more of a deceased person's net estate is left to charity | ||
All lifetime transfers not covered by exemptions and made within seven years of death will be added back into the estate for the purpose of calculating the tax payable. Tax attributable to such transfers is then subject to Taper Relief:
| Years before death | 0-3 | 3-4 | 4-5 | 5-6 | 6-7 |
|---|---|---|---|---|---|
| Tax reduced by | 0% | 20% | 40% | 60% | 80% |
| Main Reliefs | |
|---|---|
| Business property: | |
| - business or interest therein | 100% |
| - qualifying shareholdings in unquoted* companies | 100% |
| - land, buildings, machinery, or plant used by transferor's controlled company or partnership | 50% |
| Agricultural property | 50% or 100% |
| *Unquoted companies include those listed on AIM | |
Main Exemptions
- Most transfers between spouses and civil partners.
- The first £3,000 of lifetime transfers in any tax year plus any unused balance from previous year.
- Gifts of up to but not exceeding £250 p.a. to any number of persons.
- Gifts in consideration of marriage or civil partnership of: up to £5,000 by a parent, up to £2,500 by a grandparent or great grandparent, or up to £1,000 by any other person.
- Gifts made out of income that form part of normal expenditure and do not reduce the standard of living.
- Gifts to charities, whether made during lifetime or on death.
