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

  1. Most transfers between spouses and civil partners.
  2. The first £3,000 of lifetime transfers in any tax year plus any unused balance from previous year.
  3. Gifts of up to but not exceeding £250 p.a. to any number of persons.
  4. 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.
  5. Gifts made out of income that form part of normal expenditure and do not reduce the standard of living.
  6. Gifts to charities, whether made during lifetime or on death.


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