Tax relief 2012 2013 - Revision history

Designing Buildings at 09:00, 1 January 2021

2021-01-01T09:00:19Z

← Older revision		Revision as of 09:00, 1 January 2021
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−
	For more recent rates, see Tax relief.		For more recent rates, see Tax relief.

−	Tax Relief describes a situation in which an individual or company's liability to tax is reduced as a result of an entitlement to claim allowances or offset certain permitted expenditures against income.~~<br/>~~	+	Tax Relief describes a situation in which an individual or company's liability to tax is reduced as a result of an entitlement to claim allowances or offset certain permitted expenditures against income.

−	= ~~'''~~Individuals~~'''~~ =	+	= Individuals =

	Individuals are entitled to personal allowances which provide tax relief by reducing taxable income. They can also obtain tax relief if they are able to utilise other allowances which HM Revenue and Customs permit in certain circumstances.		Individuals are entitled to personal allowances which provide tax relief by reducing taxable income. They can also obtain tax relief if they are able to utilise other allowances which HM Revenue and Customs permit in certain circumstances.
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	For 2012/13 Personal Allowance:		For 2012/13 Personal Allowance:
−	*under 65 years of age £8,105	+
−	*65 - 74 £10,500	+	* under 65 years of age £8,105
−	*75 and over £10,660	+	* 65 - 74 £10,500
		+	* 75 and over £10,660

	If an individual's income exceeds £100,000 the amount of the allowance reduces by £1 for every £2 income exceeds £100,000. Thus it can be seen that at an income level of £116,210 the allowance for an individual under 65 disappears completely. Equally the higher allowances for older individuals are gradually reduced in much the same way as is the case for the basic personal allowance above £100,000. For 2012/13 the age related allowances begin to reduce at a rate of £1 for every £2 of earnings above £25,400 per annum. Married Couples Allowance of £7,705 (for 2012/13) is available where one partner is at least 75 years of age in the financial year in question. Married Couples Allowance provides tax relief at 10% thus reducing tax payable by £770.50.		If an individual's income exceeds £100,000 the amount of the allowance reduces by £1 for every £2 income exceeds £100,000. Thus it can be seen that at an income level of £116,210 the allowance for an individual under 65 disappears completely. Equally the higher allowances for older individuals are gradually reduced in much the same way as is the case for the basic personal allowance above £100,000. For 2012/13 the age related allowances begin to reduce at a rate of £1 for every £2 of earnings above £25,400 per annum. Married Couples Allowance of £7,705 (for 2012/13) is available where one partner is at least 75 years of age in the financial year in question. Married Couples Allowance provides tax relief at 10% thus reducing tax payable by £770.50.
Line 27:		Line 27:
	== Gift Aid/Deeds of Covenant ==		== Gift Aid/Deeds of Covenant ==

−	Tax relief is available to support charitable giving. For a U.K. taxpayer the amount of the gift is deemed to be net of basic rate tax. In "grossing up" the value of the gift, relief is obtained at the taxpayers marginal rate. At the same time, the recipient of the gift can reclaim the basic rate of tax deducted at source.	+	Tax relief is available to support charitable giving. For a U.K. taxpayer the amount of the gift is deemed to be net of basic rate tax. In "grossing up" the value of the gift, relief is obtained at the taxpayers marginal rate. At the same time, the recipient of the gift can reclaim the basic rate of tax deducted at source.

	== Enterprise Investment Schemes (EIS) ==		== Enterprise Investment Schemes (EIS) ==
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	=== Related articles on Designing Buildings Wiki ===		=== Related articles on Designing Buildings Wiki ===
−	*Budget.<br/>
−	*Capital allowances.
−	*Business case.
−	*Business plan
−	*Business rates.
−	*Cashflow.
−	*Cash flow forecast.
−	*Financial management tools.<br/>
−	*Funding options.
−	*Housing Grants, Construction and Regeneration Act.
−	*PAYE.
−	*Research and development tax relief.
−	*Scheme for Construction Contracts.
−	*Tax relief.
−	*VAT
−	*VAT - Option to tax (or to elect to waive exemption from VAT).
−	*VAT - Protected Buildings.

−	[[Category:Taxation]]	+	* Budget.
		+	* Capital allowances.
		+	* Business case.
		+	* Business plan
		+	* Business rates.
		+	* Cashflow.
		+	* Cash flow forecast.
		+	* Financial management tools.
		+	* Funding options.
		+	* Housing Grants, Construction and Regeneration Act.
		+	* PAYE.
		+	* Research and development tax relief.
		+	* Scheme for Construction Contracts.
		+	* Tax relief.
		+	* VAT
		+	* VAT - Option to tax (or to elect to waive exemption from VAT).
		+	* VAT - Protected Buildings.
		+
		+	[[Category:DCN_Guidance]] [[Category:DCN_Policy]] [[Category:Taxation]]

Designing Buildings at 13:32, 23 February 2015

2015-02-23T13:32:24Z

← Older revision		Revision as of 13:32, 23 February 2015
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	== Personal Allowances ==		== Personal Allowances ==

−	These are set by HM Government and usually change each financial year to take account of changes in the cost of living. From time to time however these allowances may remain unchanged for a longer period of time. Depending upon the particular circumstances of each individual, the amount of the allowance is free from assessment to tax. The level of personal allowance depends upon age and also income.	+	These are set by HM Government and usually change each financial year to take account of changes in the cost of living. From time to time however these allowances may remain unchanged for a longer period of time. Depending upon the particular circumstances of each individual, the amount of the allowance is free from assessment to tax. The level of personal allowance depends upon age and also income.

	For 2012/13 Personal Allowance:		For 2012/13 Personal Allowance:
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	*VAT - Option to tax (or to elect to waive exemption from VAT).		*VAT - Option to tax (or to elect to waive exemption from VAT).
	*VAT - Protected Buildings.		*VAT - Protected Buildings.
		+
		+	[[Category:Taxation]]

Designing Buildings at 11:39, 7 November 2014

2014-11-07T11:39:52Z

← Older revision		Revision as of 11:39, 7 November 2014
Line 10:		Line 10:
	== Personal Allowances ==		== Personal Allowances ==

−	These are set by HM Government and usually change each financial year to take account of changes in the cost of living. From time to time however these allowances may remain unchanged for a longer period of time. Depending upon the particular circumstances of each individual, the amount of the allowance is free from assessment to tax. The level of personal allowance depends upon age and also income. For 2012/13 Personal Allowance:	+	These are set by HM Government and usually change each financial year to take account of changes in the cost of living. From time to time however these allowances may remain unchanged for a longer period of time. Depending upon the particular circumstances of each individual, the amount of the allowance is free from assessment to tax. The level of personal allowance depends upon age and also income.
		+
		+	For 2012/13 Personal Allowance:
	*under 65 years of age £8,105		*under 65 years of age £8,105
	*65 - 74 £10,500		*65 - 74 £10,500
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	== Pension Contributions ==		== Pension Contributions ==

−	Individuals may obtain tax relief by contributing to personal or occupational pensions schemes with a view to building up a fund to provide income in retirement. Contributions made in this way entitle the individual to tax relief at their marginal rate of tax. For a 40% taxpayer therefore, tax relief of £20,000 may be obtained against a contribution of £50,000.	+	Individuals may obtain tax relief by contributing to personal or occupational pensions schemes with a view to building up a fund to provide income in retirement. Contributions made in this way entitle the individual to tax relief at their marginal rate of tax. For a 40% taxpayer therefore, tax relief of £20,000 may be obtained against a contribution of £50,000.

	There are detailed rules and limits governing pension schemes and amounts that may be contributed, more details of which are available from [http://www.hmrc.gov.uk/incometax/relief-pension.htm HM Revenue and Customs].		There are detailed rules and limits governing pension schemes and amounts that may be contributed, more details of which are available from [http://www.hmrc.gov.uk/incometax/relief-pension.htm HM Revenue and Customs].

Designing Buildings at 11:39, 7 November 2014

2014-11-07T11:39:24Z

← Older revision		Revision as of 11:39, 7 November 2014
Line 1:		Line 1:

−	For more recent rates, see Tax relief.	+	For more recent rates, see Tax relief.

	Tax Relief describes a situation in which an individual or company's liability to tax is reduced as a result of an entitlement to claim allowances or offset certain permitted expenditures against income.<br/>		Tax Relief describes a situation in which an individual or company's liability to tax is reduced as a result of an entitlement to claim allowances or offset certain permitted expenditures against income.<br/>
Line 6:		Line 6:
	= '''Individuals''' =		= '''Individuals''' =

−	Individuals	+	Individuals are entitled to personal allowances which provide tax relief by reducing taxable income. They can also obtain tax relief if they are able to utilise other allowances which HM Revenue and Customs permit in certain circumstances.

−	~~are entitled to personal allowances which provide tax relief by~~
−
−	~~reducing taxable income. They can also obtain tax relief if they are able to utilise other allowances which HM Revenue and Customs permit in~~
−	~~certain circumstances.~~
	== Personal Allowances ==		== Personal Allowances ==

−	These are set	+	These are set by HM Government and usually change each financial year to take account of changes in the cost of living. From time to time however these allowances may remain unchanged for a longer period of time. Depending upon the particular circumstances of each individual, the amount of the allowance is free from assessment to tax. The level of personal allowance depends upon age and also income. For 2012/13 Personal Allowance:
−		+
−	by HM Government and usually change each financial year to take account of changes in the cost of living. From time to time however these allowances may remain unchanged for a longer period of time. Depending upon the particular circumstances of each individual, the amount of the allowance is free from assessment to tax. The level of personal	+
−	allowance depends upon age and also income.	+
−	For 2012/13 Personal Allowance:	+
	*under 65 years of age £8,105		*under 65 years of age £8,105
	*65 - 74 £10,500		*65 - 74 £10,500
	*75 and over £10,660		*75 and over £10,660

−	If	+	If an individual's income exceeds £100,000 the amount of the allowance reduces by £1 for every £2 income exceeds £100,000. Thus it can be seen that at an income level of £116,210 the allowance for an individual under 65 disappears completely. Equally the higher allowances for older individuals are gradually reduced in much the same way as is the case for the basic personal allowance above £100,000. For 2012/13 the age related allowances begin to reduce at a rate of £1 for every £2 of earnings above £25,400 per annum. Married Couples Allowance of £7,705 (for 2012/13) is available where one partner is at least 75 years of age in the financial year in question. Married Couples Allowance provides tax relief at 10% thus reducing tax payable by £770.50.

−	~~an individual's income exceeds £100,000 the amount of the allowance~~
−
−	~~reduces by £1 for every £2 income exceeds £100,000. Thus it can be seen that at an income level of £116,210 the allowance for an individual~~
−	~~under 65 disappears completely.~~
−	~~Equally the higher allowances for~~
−
−	older individuals are gradually reduced in much the same way as is the case for the basic personal allowance above £100,000. For 2012/13 the age related allowances begin to reduce at a rate of £1 for every £2 of
−	~~earnings above £25,400 per annum.~~
−	~~Married Couples Allowance of~~
−
−	~~£7,705 (for 2012/13) is available where one partner is at least 75 years~~
−
−	~~of age in the financial year in question. Married Couples Allowance~~
−	~~provides tax relief at 10% thus reducing tax payable by £770.50.~~
	== Pension Contributions ==		== Pension Contributions ==

−	Individuals	+	Individuals may obtain tax relief by contributing to personal or occupational pensions schemes with a view to building up a fund to provide income in retirement. Contributions made in this way entitle the individual to tax relief at their marginal rate of tax. For a 40% taxpayer therefore, tax relief of £20,000 may be obtained against a contribution of £50,000.

−	may ~~obtain tax~~ relief ~~by contributing to personal or occupational~~	+	There are detailed rules and limits governing pension schemes and amounts that may be contributed, more details of which are available from [http://www.hmrc.gov.uk/incometax/relief-pension.htm HM Revenue and Customs].

−	~~pensions schemes with a view to building up a fund to provide income in retirement. Contributions made in this way entitle the individual to tax~~
−
−	~~relief at their marginal rate of tax. For a 40% taxpayer therefore, tax~~
−	~~relief of £20,000 may be obtained against a contribution of £50,000.~~
−
−	~~There are detailed rules and limits governing pension schemes and amounts that may be contributed, more details of which are available~~
−	~~from [http://www.hmrc.gov.uk/incometax/relief-pension.htm HM Revenue and Customs].~~
	== Gift Aid/Deeds of Covenant ==		== Gift Aid/Deeds of Covenant ==

−	Tax	+	Tax relief is available to support charitable giving. For a U.K. taxpayer the amount of the gift is deemed to be net of basic rate tax. In "grossing up" the value of the gift, relief is obtained at the taxpayers marginal rate. At the same time, the recipient of the gift can reclaim the basic rate of tax deducted at source.

−	~~relief is available to support charitable giving. For a U.K. taxpayer~~
−
−	~~the amount of the gift is deemed to be net of basic rate tax. In "grossing up" the value of the gift, relief is obtained at the taxpayers~~
−
−	~~marginal rate. At the same time, the recipient of the gift can reclaim~~
−	~~the basic rate of tax deducted at source.~~
	== Enterprise Investment Schemes (EIS) ==		== Enterprise Investment Schemes (EIS) ==

−	Tax	+	Tax relief is also available to individuals who are prepared to invest in new businesses. The EIS pemits relief of 30% on the investment into shares in approved companies upto a maximum of £500,000. Thus maximum tax relief of £150,000 is available if the investor has sufficient taxable income against which the EIS relief can be set. There is also a carry - back provision which permits the tax relief to be set against income tax liability arising in the tax year immediately prior to the year in which the share acquisition is effected. Shares must be held for a mnimum of three years otherwise the tax relief granted will be withdrawn.
−		+
−	relief is also available to individuals who are prepared to invest in	+
−		+
−	new businesses. The EIS pemits relief of 30% on the investment into shares in approved companies upto a maximum of £500,000. Thus maximum tax relief of £150,000 is available if the investor has sufficient taxable income against which the EIS relief can be set. There is also a carry - back provision which permits the tax relief to be set against income tax liability arising in the tax year immediately prior to the year in which the share acquisition is effected. Shares must be held for	+

−	~~a mnimum of three years otherwise the tax relief granted will be~~
−	~~withdrawn.~~
	= Companies =		= Companies =

−	Companies and non-incorporated	+	Companies and non-incorporated businesses obtain tax relief by setting business running costs against income. They can also obtain relief by claiming capital allowances when they purchase assets for use in their businesses.

−	~~businesses obtain tax relief by setting business running costs against income. They can also obtain relief by claiming capital allowances when~~
−	~~they purchase assets for use in their businesses.~~
	= Find out more =		= Find out more =

Designing Buildings: Created page with " For more recent rates, see Tax relief. Tax Relief describes a situation in which an individual or company's liability to tax is reduced as a result of an entitlement to claim ..."

2014-11-07T11:37:59Z

Created page with " For more recent rates, see Tax relief. Tax Relief describes a situation in which an individual or company's liability to tax is reduced as a result of an entitlement to claim ..."

New page

For more recent rates, see Tax relief.

Tax Relief describes a situation in which an individual or company's liability to tax is reduced as a result of an entitlement to claim allowances or offset certain permitted expenditures against income.<br/>

= '''Individuals''' =

Individuals

are entitled to personal allowances which provide tax relief by

reducing taxable income. They can also obtain tax relief if they are able to utilise other allowances which HM Revenue and Customs permit in
certain circumstances.
== Personal Allowances ==

These are set

by HM Government and usually change each financial year to take account of changes in the cost of living. From time to time however these allowances may remain unchanged for a longer period of time. Depending upon the particular circumstances of each individual, the amount of the allowance is free from assessment to tax. The level of personal
allowance depends upon age and also income.
For 2012/13 Personal Allowance:
*under 65 years of age £8,105
*65 - 74 £10,500
*75 and over £10,660

If

an individual's income exceeds £100,000 the amount of the allowance

reduces by £1 for every £2 income exceeds £100,000. Thus it can be seen that at an income level of £116,210 the allowance for an individual
under 65 disappears completely.
Equally the higher allowances for

older individuals are gradually reduced in much the same way as is the case for the basic personal allowance above £100,000. For 2012/13 the age related allowances begin to reduce at a rate of £1 for every £2 of
earnings above £25,400 per annum.
Married Couples Allowance of

£7,705 (for 2012/13) is available where one partner is at least 75 years

of age in the financial year in question. Married Couples Allowance
provides tax relief at 10% thus reducing tax payable by £770.50.
== Pension Contributions ==

Individuals

may obtain tax relief by contributing to personal or occupational

pensions schemes with a view to building up a fund to provide income in retirement. Contributions made in this way entitle the individual to tax

relief at their marginal rate of tax. For a 40% taxpayer therefore, tax
relief of £20,000 may be obtained against a contribution of £50,000.

There are detailed rules and limits governing pension schemes and amounts that may be contributed, more details of which are available
from [http://www.hmrc.gov.uk/incometax/relief-pension.htm HM Revenue and Customs].
== Gift Aid/Deeds of Covenant ==

Tax

relief is available to support charitable giving. For a U.K. taxpayer

the amount of the gift is deemed to be net of basic rate tax. In "grossing up" the value of the gift, relief is obtained at the taxpayers

marginal rate. At the same time, the recipient of the gift can reclaim
the basic rate of tax deducted at source.
== Enterprise Investment Schemes (EIS) ==

Tax

relief is also available to individuals who are prepared to invest in

new businesses. The EIS pemits relief of 30% on the investment into shares in approved companies upto a maximum of £500,000. Thus maximum tax relief of £150,000 is available if the investor has sufficient taxable income against which the EIS relief can be set. There is also a carry - back provision which permits the tax relief to be set against income tax liability arising in the tax year immediately prior to the year in which the share acquisition is effected. Shares must be held for

a mnimum of three years otherwise the tax relief granted will be
withdrawn.
= Companies =

Companies and non-incorporated

businesses obtain tax relief by setting business running costs against income. They can also obtain relief by claiming capital allowances when
they purchase assets for use in their businesses.
= Find out more =

=== Related articles on Designing Buildings Wiki ===
*Budget.<br/>
*Capital allowances.
*Business case.
*Business plan
*Business rates.
*Cashflow.
*Cash flow forecast.
*Financial management tools.<br/>
*Funding options.
*Housing Grants, Construction and Regeneration Act.
*PAYE.
*Research and development tax relief.
*Scheme for Construction Contracts.
*Tax relief.
*VAT
*VAT - Option to tax (or to elect to waive exemption from VAT).
*VAT - Protected Buildings.