2013/14 Archive

Income Tax Rates

Income Tax rates
2013/14 2012/13
Taxable Bands Rate Taxable Bands Rate
£0 – £2,790 10% * £0 – £2,710 10% *
£2,791 – £32,010 20% ¹ £2,711 – £34,370 20% ¹
£32,011 – £150,000 40% ² £34,371 – £150,000 40% ²
Over £150,000 45% ³ Over £150,000 50% ³

* Only applies to savings income.

¹ Dividends taxed at 10%.

² Dividends taxed at 32.5% of the gross dividend.

³ Dividends taxed at 37.5% (2012/13: 42.5%) of the gross dividend.

Allowances that reduce taxable income 2013/14 2012/13
Personal allowance (PA) under 65 ¹ £9,440 £8,105
65 to 74 ¹ ² £10,500 £10,500
75 and over ¹ ² £10,660 £10,660

Ages are as at the end of the tax year.

¹ The Personal Allowance reduces where the income is above £100,000 by £1 for every £2 of income above the £100,000 limit. This reduction applies irrespective of age.

² Age related allowances are reduced by £1 for every £2 that adjusted net income exceeds £26,100 to a minimum PA of £9,440.

Allowances that reduce tax 2013/14 2012/13
Enterprise Investment Scheme (EIS) up to ¹ £1,000,000 £1,000,000
Venture Capital Trust (VCT) up to ¹ £200,000 £200,000
Rent a Room – exempt on gross annual rent up to £4,250 £4,250

¹ Income tax relief is 30%.

National Insurance (NI) Rates

£ Per Week 2013/14 2012/13
Employees    
Lower earnings limit, primary Class 1 £109 £107
Upper earnings limit, primary Class 1 £797 £817
Upper accruals point £770 £770
Primary threshold £149 £146
Secondary threshold £148 £144
Employees’ primary Class 1 rate between primary threshold & upper earnings limit 12% 12%
Employees’ primary Class 1 rate above upper earnings limit 2% 2%
Class 1A rate on employer provided benefits ¹ 13.8% 13.8%
Class 2 rate (self-employed) £2.70 £2.65
Class 2 small earnings exception £5,725 per year £5,595 per year
Class 3 rate (voluntary contributions) £13.55 £13.25
Class 4 lower profits limit (self-employed) £7,755 per year £7,605 per year
Class 4 upper profits limit (self-employed) £41,450 per year £42,475 per year
Class 4 rate between lower and upper profit limits 9% 9%

¹ Class 1A NIC’s are payable in July and are calculated on the value of taxable benefits provided in the previous tax year.

If you’re employed you stop paying National Insurance contributions as soon as you reach State Pension age.

If you are self-employed, you stop paying Class 2 contributions as soon as you reach State Pension age and Class 4 contributions from the start of the tax year after the one in which you reach State Pension age.

NIC Holiday

Some businesses will be exempt from paying the employer’s class 1 NICs for 12 months for up to 10 employees, capped at £5,000 per employee.

The scheme started in September 2010 but will apply to new businesses set up on and after 22 June 2010.


It will only apply in Scotland, Wales, Northern Ireland, the North of England, Yorkshire, the Midlands and the South West regions.


Certain businesses are excluded, such as those under the IR35 or Managed Service Company rules, and businesses in grant-supported sectors such as agriculture, fisheries and coal.

Budget 2013

From April 2014, the first £2,000 is to be deducted from National Insurance (Employer Class 1 secondary NIC liability) paid by an employer.

National Insurance (NI) Rates

£ Per Week 2013/14 2012/13
Employees    
Lower earnings limit, primary Class 1 £109 £107
Upper earnings limit, primary Class 1 £797 £817
Upper accruals point £770 £770
Primary threshold £149 £146
Secondary threshold £148 £144
Employees’ primary Class 1 rate between primary threshold & upper earnings limit 12% 12%
Employees’ primary Class 1 rate above upper earnings limit 2% 2%
Class 1A rate on employer provided benefits ¹ 13.8% 13.8%
Class 2 rate (self-employed) £2.70 £2.65
Class 2 small earnings exception £5,725 per year £5,595 per year
Class 3 rate (voluntary contributions) £13.55 £13.25
Class 4 lower profits limit (self-employed) £7,755 per year £7,605 per year
Class 4 upper profits limit (self-employed) £41,450 per year £42,475 per year
Class 4 rate between lower and upper profit limits 9% 9%

¹ Class 1A NIC’s are payable in July and are calculated on the value of taxable benefits provided in the previous tax year.

If you’re employed you stop paying National Insurance contributions as soon as you reach State Pension age.

If you are self-employed, you stop paying Class 2 contributions as soon as you reach State Pension age and Class 4 contributions from the start of the tax year after the one in which you reach State Pension age.

NIC Holiday

Some businesses will be exempt from paying the employer’s class 1 NICs for 12 months for up to 10 employees, capped at £5,000 per employee.

The scheme started in September 2010 but will apply to new businesses set up on and after 22 June 2010.


It will only apply in Scotland, Wales, Northern Ireland, the North of England, Yorkshire, the Midlands and the South West regions.


Certain businesses are excluded, such as those under the IR35 or Managed Service Company rules, and businesses in grant-supported sectors such as agriculture, fisheries and coal.

Budget 2013

From April 2014, the first £2,000 is to be deducted from National Insurance (Employer Class 1 secondary NIC liability) paid by an employer.

Corporation Tax On Profits – £ per year (unless stated)

  Financial Year to 31/3/2014 Financial Year to 31/3/2013
Taxable profits    
First £300,000 (Small Profits Rate) 20% 20%
Next £1,200,000 (Effective Marginal Rate) 23.75% 25%
Over £1,500,000 (Main Rate) 23% 24%

The profits limits are reduced for accounting periods of less than 12 months and for a company with associated companies.

It has been announced the main companies rate will decrease to 21% from 1 April 2014 and to 20% from 1st April 2015.

Capital Allowances

Plant and machinery Allowance 2013/14  
Main rate pool:    
– expenditure up to £250,000 (£25,000 before 1 January 2013) – First Year 100% ¹
– expenditure over £250,000 (£25,000 before 1 January 2013) – First Year 18%  
– subsequent years writing down allowance 18%  
     
Special rate pool (long life assets, integral features):    
– expenditure up to £250,000 (£25,000 before 1 January 2013) – First Year 100% ¹
– expenditure over £250,000 (£25,000 before 1 January 2013) – First Year 8%  
– subsequent writing down allowance 8%  
     
Energy saving plant and machinery 100% ²
     
Motor cars    
New cars with CO2 emission not exceeding 95g/km 100% ³
Cars with C02 emission over 95g/km to 130g/km – writing down allowance 18% ³
Cars with C02 emission over 130g/km – writing down allowance 8% ³
Cars acquired prior to April 2009 – writing down allowance 18% – max £3,000 ³
     
Research & development    
Research & development 130%  
SME’s 225%  
     
Intangible assets for companies Amortisation per accounts or 4%  

Capital allowances write off the cost of capital assets against taxable profits. They are used instead of the depreciation in the accounts, which is not allowable as a tax deduction.

¹ For accounting periods shorter or longer than 1 year the £250,000 (£25,000 before 1 Janaury 2013) limit is pro-rata. Transitional provisions apply to accounting periods that straddle 1 January 2013. There is a single £250,000 (£25,000 before 1 Janaury 2013) AIA limit for groups of companies and there is “anti-fragmentation” rules for “related” companies and businesses under common control. The AIA limit can be allocated between companies as they wish.

² Companies that make losses attributable to 100% first year allowances on designated energy saving or environmentally beneficial plant and machinery can surrender the loss in exchange for the first year tax credit equal to 19% of the loss surrendered subject to a maximum of the greater of £250,000 or the company’s total PAYE and NIC liability for the period concerned.

³ The distinction between cars that cost more and less than £12,000 ended on 1 April 2009 for companies and 6 April 2009 for unincorporated businesses. From this date cars will be put into one of two general plant pools. Cars with private usage will still be held in individual pools but the rate determined by these criteria. For expenditure on cars before April 2009, there is a 5 year transitional period where they will continue to be subject to the existing expensive car rules. Prior to these dates there was a 20% writing down allowance subject to a maximum of £3,000 p.a.

Capital Gains Tax

Annual exempt amount 2013-14 (£) 2012-13 (£)
Individuals 10,900 10,600
Other trustees (spread between each trust) 5,450 5,00

  2013-14 (£) 2012-13 (£)
Standard Rate of tax 18% 18%
Higher Rate* 28% 28%
Entrepreneurs’ Relief – effective rate 10% 10%
Entrepreneurs’ Relief lifetime limit £10million £10million

Entrepreneurs’ relief is available on qualifying lifetime gains on or after 6th April 2008.

*The higher rate applies to higher and additional rate taxpayers.

Transfers between husband and wife or civil partners that live together are exempt.

Value Added Tax

Standard Rate 20%
VAT Fraction 1/6
Lower Rate 5%


  From 1/4/13 1 Jan 2010
Turnover per annum    
Registration level £79,000 £77,000
Deregistration limit £77,000 £75,000
Cash accounting scheme – up to £1,350,000 £1,350,000
Optional flat rate scheme – up to £150,000 £150,000
Annual accounting scheme – up to £1,350,000 £1,350,000

VAT fuel scale charges from 1/5/13

CO2 band Scale charge per quarter £ VAT on quarterly charge £
124 or less 168 28
125 – 129 253 42.17
130 – 134 269 44.83
135 – 139 286 47.67
140 – 144 303 50.5
145 – 149 320 53.33
150 – 154 337 56.17
155 – 159 354 59
160 – 164 371 61.83
165 – 169 388 64.67
170 – 174 404 67.33
175 – 179 421 70.17
180 – 184 438 73
185 – 189 455 75.83
190 – 194 472

78.67
195 – 199 489 81.5
200 – 204 506 84.33
205 – 209 523 87.17
210 – 209 539 89.83
215 – 219 556 92.67
220 – 224 573 95.5
225 and above 590 98.33

VAT fuel scale charges from 1/5/12

CO2 band Scale charge per quarter £ VAT on quarterly charge £
124 or less 166 27.67
125 – 129 250 41.67
130 – 134 266 44.33
135 – 139 283 47.17
140 – 144 300 50
145 – 149 316 52.67
150 – 154 333 55.5
155 – 159 350 58.33
160 – 164 366 61
165 – 169 383 63.83
170 – 174 400 66.67
175 – 179 416 69.33
180 – 184 433 72.17
185 – 189 450 75
190 – 194 467 77.83
195 – 199 483 80.5
200 – 204 500 83.33
205 – 209 517 86.17
210 – 209 533 88.83
215 – 219 550 91.67
220 – 224 567 94.5
225 and above 583 97.17

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

The IHT threshold is to be frozen at £325,000 until 2017/18.

For deaths after 9th October 2007, a transfer of any unused nil rate band is available from former deceased spouses and civil partners.

Rate of tax on balance:    
Chargeable lifetime transfers 20% 20%
Transfers on, or within 7 years of, death 40% 40%

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 reduced:

Years before death 0-3 3-4 4-5 5-6 6-7
Tax reduced by 0% 20% 40% 60% 80%

Main Exemptions

  1. Most transfers between spouses and civil partners are exempt.
  2. If you survive for seven years after making a gift to someone, the gift is generally exempt from Inheritance Tax, no matter what the value.
  3. Annual gifts of up to £3,000 per donor are exempt. You can also use your unused allowance from the previous year but you use the current year’s allowance first.
  4. Gifts of up to but not exceeding £250 per annum to any number of persons are exempt.
  5. Gifts in consideration of marriage or civil partnership of: up to £5,000 by a parent, up to £2,500 by a grandparent, bride or groom, or up to £1,000 by any other person are exempt.
  6. Gifts to charities, whether made during lifetime or on death are exempt.

Business Property Relief

Business, interest in business or qualifying shareholders in unquoted companies (includes AIM listed companies) – 100%

Land, buildings, machinery, or plant used in a company controlled by the transferor – 50%

Agricultural property – 50% or 100%

Pensions

There is no limit on the amount that may be contributed to a registered pension scheme. The
maximum amount on which an individual can claim tax relief in any tax year is the greater of the
individual’s UK relevant earnings or £3,600.

If total pension input exceeds the annual allowance of £50,000 (dropping to £40,000 in 2014/15) there is a tax charge on the excess. This limit does not apply in the year that full pension benefits are taken.
Contributions in excess of the allowance are charged to tax at the top slice of income. Contributions also include those made by the employer.

Maximum age for tax relief 74
Minimum age for taking benefits 55
Lifetime allowance charge-lump sum paid 55%
Lifetime allowance charge – monies retained 25%
on cumulative benefits exceeding £1,500,000*
Maximum tax-free lump sum 25%*

*£1,250,000 for 2014/15 onwards.

Key Tax Dates

Income Tax and Class 4 NIC

  • 31 Jan 2014 – balancing payment for 2012/13 and 1st payment on account for 2013/14
  • 31 July 2014 – 2nd payment on account for 2013/14
  • 31 Jan 2015 – balancing payment for 2013/14 and 1st payment on account for 2014/15

Tax Return

  • 31 October 2013 – Filing deadline for 2013 paper return
  • 31 January 2014 – Filing deadline for 2013 online return

Capital Gains Tax

  • 31 January 2014 – CGT payment due for 2012/13
  • 31 January 2015 – CGT payment due for 2013/14

Inheritance Tax

  • Payment due 6 months after the end of the month of death or chargeable transfer.
  • For chargeable lifetime transfers from 6 April to 30 September, payment is due by 30 April in the following tax year.

Corporation Tax

  • Payment due 9 months and 1 day after the end of the accounting period. Accounts longer than 12 months are divided into two periods.

2013/14 PAYE Return Deadlines

  • 19 May 2014 – P35, P14, P38, P38A and CIS36
  • 31 May 2014 – P60s to employees
  • 6 July 2014 – P11D, P11Db and P9D – and give copies to employees
  • 19 July 2014 – Payment of Class 1A National Insurance on benefits due or 22 July 2014 for electronic payments

Stamp Duty Land Tax

The following rates apply for2013/14

The applicable rate of Stamp Duty Land Tax must be applied to the whole of the consideration paid to acquire the land / buildings.

Land and Buildings in the UK

Rate Residential Non-residential
Zero £0 to £125,000 £0 to £150,000
1% £125,000+ to £250,000* £150,000+ to £250,000
3% £250,000+ to £500,000 £250,000+ to £500,000
4% £500,000+ to £1,000,000 Over £500,000
5% £1,000,000+to £2,000,000  
7% Over £2,000,000  
15% Over £2,000,000 bought through a company  

For disadvantaged areas, sales of land and buildings up to £150,000 are exempt.

New leases (Lease Duty)

Duty On Rent

Rate Residential Non-Residential
Zero £0 to £125,000 £0 to £150,000
1% £125,000+ £150,000+

Please note that when calculating duty payable on the ‘NPV’ (Net Present Value) of leases, you must reduce your ‘NPV’ calculation by the following before applying the 1% rate.

Residential – £125,000

Non-Residential – £150,000

Duty on premium is the same as for transfers of land (except special rules apply for premium on non-residential properties where the rent exceeds £1,000 annually).

Stamp Tax

The rate of stamp duty / stamp duty reserve tax for the transfer of shares and securities is 0.5%. Where the consideration is £1,000 or less on the transfer of shares, they will be exempt from stamp duty.

Car and Fuel Benefits

The following rates apply for 2013/14.

CO2 emissions Petrol Diesel
grams per kilometre % of list price
1 – 75 5 8
76 – 94 10 13
95 – 99 11 14
100-104 12 15
105-109 13 16
110-114 14 17
115-119 15 18
120-124 16 19
125-129 17 20
130-134 18 21
135-139 19 22
140-144 20 23
145-149 21 24
150-154 22 25
155-159 23 26
160-164 24 27
165-169 25 28
170-174 26 29
175-179 27 30
180-184 28 31
185-189 29 32
190-194 30 33
195-199 31 34
200-204 32 35
205-209 33 35
210-214 34 35
215 and above 35 35

To find the CO2 figure for your car, you can…

  • visit the Vehicle Certification Agency www.dft.gov.uk/vca
  • inspect the car’s V5 registration document
  • ask your dealer

For cars registered before 1 January 1998 the tax charge is 15% of the list price for engines up to 1,400 cc, 22% for engines of 1,401 cc to 2,000 cc and 32% for engines above 2,000 cc.

Employee contributions reduce the taxable benefit by the amount paid.

Car Fuel Benefits

The car fuel benefit is calculated by applying the above car benefit percentage to a figure of £21,100 (2012/13 – £20,200).

The fuel benefit charge is proportionately reduced if provision of private fuel ceases part way through the year.

The fuel benefit is reduced to nil only if the employee pays for all private fuel.

Van Benefits – 2013/14 and 2012/13

The taxable benefit for private use of a company van that is more than home to work travel is £3,000. For 5 years from 2010/11 this is reduced to nil for vans which cannot produce CO2 emissions under any circumstances.

The taxable benefit for fuel provided for private use is £564 for 2013/14 (£550 for 2012/13).

Employee Private Fuel Rates

These are the rates that employees must pay their employers for private fuel usage in their company car.

From 1st September 2013*

Petrol LPG
Up to 1400cc 15p 10p
1401cc to 2000cc 18p 11p
Over 2000cc 26p 18p
Diesel
Up to 1600cc 12p
1601cc to 2000cc 15p
Over 2000cc 18p

*Rates per mile

From 1st June 2013*

Petrol LPG
Up to 1400cc 15p 10p
1401cc to 2000cc 17p 12p
Over 2000cc 25p 18p
Diesel
Up to 1600cc 12p
1601cc to 2000cc 14p
Over 2000cc 18p

Mileage and Fuel Allowances

These rates represent the maximum tax-free mileage allowances for employees using their own vehicles for business. Any excess is taxable. If the employee receives less than the statutory rate, tax relief can be claimed on the difference.

Approved mileage rates

From 2011-12 First 10,000 business miles in the tax year Each business mile over 10,000 in the tax year
Cars and vans 45p 25p
Motor cycles 24p 24p
Bicycles 20p 20p

Passenger payments – cars and vans

5p per passenger per business mile for carrying fellow employees in a car or van on journeys which are also work journeys for them. Only payments specifically for carrying passengers count and there is no relief if you receive less than 5p or nothing at all.

Charitable Gifts

Gift Aid

Individuals can claim higher rate tax relief on cash gifts and payments to charities using gift aid. It allows a charity to reclaim the basic-rate tax on donations made by UK taxpayers from HMRC. Higher rate taxpayers can claim an additional tax relief on the gross donation through their tax return at their marginal rate.

You can make a claim for a charitable donation made in one tax year to be treated as if it had been made in the previous tax year.

Give As You Earn

Give As You Earn allows employees to make regular donations tax-free from their gross salary. The employer will deduct the amount from their salary for payment to the charity.

The taxable pay of the employee is reduced by the amount of their donation.

Minimum Wage

From 1 October 2013 From 1 October 2012
21 & over £6.31/hour £6.19/hour
18 to 20 £5.03/hour £4.98/hour
16 and 17 £3.72/hour £3.68/hour
Apprentice rate £2.68/hour £2.65/hour

Social Security Benefits

Weekly Benefit 2013-14 2012-13
Basic retirement pension – single person £110.15 £107.45
Basic retirement pension – married couple £176.15 £171.85

Statutory pay rates – average weekly earnings £109 or over

2013-14 2012-13
Statutory Sick Pay £86.70 £85.85
Statutory Maternity Pay – first six weeks 90% of weekly earnings 90% of weekly earnings
Statutory Maternity Pay – next 33 weeks £136.78* £135.45*
Statutory Paternity Pay – 2 weeks £136.78* £135.45*
Statutory Adoption Pay – 39 weeks £136.78* £135.45*
Jobseekers Allowance** – Single Person (over 25) up to £71.00 £71.00
Jobseekers Allowance** – Married Couple up to £111.45 £111.45

* Or 90% of weekly earnings if this is lower
** Jobseekers Allowance will be replaced by Universal Credits in a phased introduction between April and October 2013

Tax Credits, Universal Credit & Child Benefit

Universal Credit will replace Child Tax Credits and Working Tax Credits as well as income-based Jobseekers Allowance, Income Support and Housing Benefit. It does not replace Child Benefit.

Universal Credit is starting with certain areas of North-West of England in April 2013. Form October 2013 there is a national launch of Universal Credits for new claimants. Existing claimants will be phased in over a period expected to be completed by the end of 2017.

Working Tax Credit* – £ per year (unless stated)

2013-14 2012-13
Rates and Thresholds
Basic element 1,920 1,920
Couple and lone parent element 1,970 1,950
30 hour element 790 790
Disabled worker element 2,855 2,790
Severe disability element 1,220 1,190

Childcare Element of the Working Tax Credit* – £ per year (unless stated)

2013-14 2012-13
Rates and Thresholds
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% 70%

Child Tax Credit* – £ per year (unless stated)

2013-14 2012-13
Rates and Thresholds
Child Tax Credit Family element 545 545
Child element 2,720 2,690
Disabled child element 3,015 2,950
Severely disabled child element 1,220 1,190

* Tax Credits elements will be replaced by Universal Credits in a phased introduction between April and October 2013

Income thresholds and withdrawal rates – £ per year (unless stated)

2013-14 2012-13
Rates and Thresholds
First income threshold 6,420 6,420
First withdrawal rate (per cent) 41% 41%
First threshold for those entitled to Child Tax Credit only 15,910 15,860
Income disregard 5,000 10,000
Income fall disregard 2,500 2,500

Child Benefit

Child Benefit/Guardian Allowance – £ per week

2013-14 2012-13
Rates and Thresholds
Eldest/Only Child 20.30 20.30
Other Children 13.40 13.40
Guardian’s Allowance 15.90 15.55

From 7 January 2013 tax payers with income of over £50,000 will have their Child Benefit restricted.

This will be administered as an income tax charge on the person earning over £50,000.

The income tax charge will apply at a rate of one per cent of the full Child Benefit for each £100 of income between £50,000 and £60,000. The charge on taxpayers with income above £60,000 will be equal to the amount of Child Benefit paid.

Where both partners earn over £50,000 it is the partner with the highest income who will be subject to the charge.

Universal Credit

Standard Allowance – £ per month

2013-14 2012-13
Monthly Amount
Single claimant (under 25) 246.81 N/A
Single claimant (over 25) 311.55 N/A
Joint claimants (both under 25) 387.42 N/A
Joint claimants (either over 25) 489.06 N/A

Child Element – £ per month

2013-14 2012-13
Monthly Amount
First child 272.08 N/A
Second and each subsequent child 226.67 N/A
Additional for disabled child – low rate 123.62 N/A
Additional for disabled child – high rate 352.92 N/A

Capability for Work Elements – £ per month

2013-14 2012-13
Monthly Amount
Limited capability for work 123.62 N/A
Limited capability for work and work-related activity 303.66 N/A

Carer Element – £ per month

2013-14 2012-13
Monthly Amount
Caring for severely disabled person (at least 35 hours per week) 144.70 N/A

Childcare Costs Element – £ per month

2013-14 2012-13
Monthly Amount
Maximum for one child 532.29* N/A
Maximum for two or more children 912.50* N/A

* 70% of relevant childcare costs met

Housing Costs Element

This includes:

  • Eligible rent payments
  • Certain service charges
  • Mortgage interest

Work Allowance and Taper – £ per month

Higher Work Allowance – per month
Single claimant – no children 111
Single claimant – one or more children 734
Single claimant – limited capability for work 647
Joint claimants – no children 111
Joint claimants – one or more children 536
Joint claimants – one or both have limited capability for work 647
Lower Work Allowance – per month
Single claimant – no children 111
Single claimant – one or more children 263
Single claimant – limited capability for work 192
Joint claimants – no children 111
Joint claimants – one or more children 222
Joint claimants – one or both have limited capability for work 192

After the Work Allowance has been taken into account, the Universal Credit award will be withdrawn at a rate of 65p for each £1 of net earnings.

Benefit Cap* – £ per week

Per week
Single adult – no children 350
Single adult – one or more child 500
Couple – with or without children 500

* Only affects claimants in receipt of Housing Benefit during the Universal Credit transitional period.

Individual Savings Accounts

Annual exempt amount Overall Limit (£) Cash Limit (£)
2013/14 11,520 5,760
2012/13 11,280 5,640

In 2013/14 up to £5,760 of that allowance can be saved in a cash ISA. The remainder of the £11,520 can be invested in a stocks and shares ISA with either the same or a different provider.

These savings and their related interest are exempt from income tax & capital gains tax.

Anyone aged 16-17 can invest in a cash ISA only up to the cash limit above.

Junior ISA’s are available for those under 18 to invest up to £3,720 (2012/13 – £3,600)