The Budget 2013 Commentaries - Personal And Trust Taxes

The commentaries below are written in general terms. Details can also be found in our downloadable Budget Report brochure, which will be available shortly. You are strongly recommended to seek specific advice before taking any action based on the information given, both in the commentaries and in the publication.

Income tax rates and thresholds Income tax and national insurance contribution (NIC) rates and thresholds will remain at their 2012/13 levels in 2013/14, except where noted below. All thresholds are set out in the Appendix.

The personal allowance for those individuals born after 5 April 1948 will increase by £1,335 to £9,440 for 2013/14. The upper threshold of the basic rate band will be reduced by £2,360 to £32,010.

For 2014/15, the personal allowance for individuals born after 5 April 1948 will increase to £10,000. Again, there will be a decrease in the basic rate band this time by £145 to £31,865.

The additional rate of income tax will be reduced from 50% to 45% and the dividend additional rate from 42.5% to 37.5% from 6 April 2013.

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