Income Tax Allowances, Reliefs and Credits




	2012/13 £	2011/12 £
Given at marginal rate of income tax
Personal allowance (minimum)	8,105	7,475
Personal allowance (age 65-74)	10,500	9,940
Personal allowance (age 75+)	10,660	10,090

Blind Person's Allowance	2,100	1,980

Rent-a-room tax free home income* *restricted to £2,125 if letting jointly	4,250	4,250

Relief restricted to 10%
Married couples/Civil partnerships allowance (age under 75 and born before 6th April 1935)	N/A	N/A
Married couples/Civil partnerships allowance (age 75+)	7,705	7,295
Married couples/Civil partnerships allowance (minimum)	2,960	2,800
Income limit for age-related allowances	25,400	24,000
Personal allowances progressively reduced £1 for £2 income above £100,000

Child Tax Credit (CTC)
Family element	545	545
Child element	2,690	2,555
Disabled child element	2,950	2,800
Severely disabled child element	1,190	1,130

Working Tax Credit (WTC)
Basic element	1,920	1,920
Couples & lone parent element	1,950	1,950
30 hour element	790	790
Disabled worker element	2,750	2,650
Severe disability element	1,190	1,130
50+ return to work payment (16-29 hours)	Removed!	1,365
50+ return to work payment (30+ hours)	Removed!	2,030

Childcare Element of WTC
Maximum eligible cost for one child	£175 per week	£175 per week
Maximum eligible cost for two or more children	£300 per week	£300 per week
Percentage of eligible costs covered	70%	80%

Withdrawal Rates for CTC & WTC
First income threshold	6,420	6,420
First income threshold for CTC only	15,860	15,860
First withdrawal rate	41%	41%
Second income threshold	40,000	Withdrawn
Second withdrawal rate	41%	41%
Income increase disregarded	10,000	10,000

Limits for other reliefs
Enterprise Investment Scheme (EIS)	30%	30%
Maximum Investment	1000,000	500,000
EIS capital gains re-investment	Unlimited	Unlimited

Seed Enterprise Investment Scheme (SEIS)
Maximum Investment	100,000@50%

Venture Capital Trusts (VCT) @ 30%
Maximum Investment	200,000	200,000

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