Rates And Allowances

Current Tax Year: 2015 - 16

Income tax, capital gains tax, inheritance tax and pension schemes

Personal Allowances
Allowances 2016 to 2017 2015 to 2016 2014 to 2015
Personal Allowance for people born after 5 April 1948 £11,000 £10,600 £10,000
Income limit for Personal Allowance £100,000 £100,000 £100,000
Personal Allowances for people born before 6 April 1948
Allowances 2016 to 2017 2015 to 2016 2014 to 2015
Personal Allowance for people born between 6 April 1938 and 5 April 1948 £11,000 £10,600 £10,500
Personal Allowance for people born before 6 April 1938 £11,000 £10,660 £10,660
Income limit for Personal Allowance £27,700 £27,700 £27,000
Other allowances
Allowances 2016 to 2017 2015 to 2016 2014 to 2015
Married Couple’s Allowance - maximum amount £8,355 £8,355 £8,165
Married Couple’s Allowance - minimum amount £3,220 £3,220 £3,140
Blind Person’s Allowance £2,290 £2,290 £2,230
Tax rates and bands
Band Rate Income after allowances  Income after allowances  Income after allowances 
    2016 to 2017 2015 to 2016 2014 to 2015
Starting rate for savings 10% (0% from 2015 to 2016) Up to £5,000 Up to £5,000 Up to £2,880
Basic rate 20% Up to £32,000 Up to £31,785 Up to £31,865
Higher rate 40% £32,001 to £150,000 £31,786 to £150,000 £31,866 to £150,000
Additional rate 45% Over £150,001 Over £150,001 Over £150,001
Dividends

The following rates for tax on dividends apply from 6 April 2010 to 5 April 2016:

Band Dividend tax rates
Basic rate (and non-taxpayers) 10.00%
Higher rate 32.50%
Additional rate (from 6 April 2013) 37.50%
Additional rate (dividends paid before 6 April 2013) 42.50%

From 6 April 2016 there’s a £5,000 dividend allowance.

Capital Gains Tax

Annual exempt amounts
Customer group 2016 to 2017 2015 to 2016 2014 to 2015
Individuals, personal representatives and trustees for disabled people 11100 11100 11000
Other trustees 5550 5550 5500
Rates - Tax years 2013 to 2016

The following Capital Gains Tax rates apply:

  • 18% and 28% tax rates for individuals (the tax rate you use depends on the total amount of your taxable income, so you need to work this out first)
  • 28% for trustees or for personal representatives of someone who has died
  • 10% for gains qualifying for Entrepreneurs’ Relief
  • 28% for Capital Gains Tax on property where the Annual Tax on Enveloped Dwellings is paid - the Annual Exempt Amount is not applicable
  • 20% for companies (non-resident Capital Gains Tax on the disposal of a UK residential property) (2015/16)
Rates - Tax years 2016 to 2017

The following Capital Gains Tax rates apply (the tax rate you use depends on the total amount of your taxable income, so you need to work this out first):

  • 10% and 20% tax rates for individuals (not including residential property and carried interest)
  • 18% and 28% tax rates for individuals for residential property and carried interest
  • 20% for trustees or for personal representatives of someone who has died (not including residential property)
  • 28% for trustees or for personal representatives of someone who has died for disposals of residential property
  • 10% for gains qualifying for Entrepreneurs’ Relief
  • 28% for Capital Gains Tax on property where the Annual Tax on Enveloped Dwellings is paid - the Annual Exempt Amount is not applicable
  • 20% for companies (non-resident Capital Gains Tax on the disposal of a UK residential property)

Inheritance Tax thresholds - to 5th April 2017

From To Threshold/ nil rate band
06/04/09 05/04/17 £325,000

Pension scheme allowances

Tax Year

2016 to 2017

2015 to 2016

2014 to 2015

Annual allowance

£40,000

6th April 2015 to 8th July 2015 - £80,000

9th July 2015 to 5th April 2016 - £0

£40,000

Standard lifetime allowance

£1,000,000

£1,250,000

£1,250,000

Corporation taxFrom 6th April 2016 your annual allowance will be reduced if your income for the tax year is more than £150,000.

Your profits From 1 April 2015 From 1 April 2014 From 1 April 2013
£300,000 or less 20% 20% 20%
Above £300,000 20% 21% 23%

National Insurance

Class 1 National Insurance thresholds
£ per week 2016 to 2017 2015 to 2016 2014 to 2015
Lower Earnings Limit (LEL) £112 £112 £111
Primary Threshold (PT) £155 £155 £153
Secondary Threshold (ST) £156 £156 £153
Upper Accrual Point (UAP) N/A £770 £770
Upper Earnings Limit (UEL) £827 £815 £805
Upper Secondary Threshold (UST) £827 £815 N/A
Apprentice Upper Secondary Threshold (AUST) £827 N/A N/A
Employer rates
  2016 to 2017 2015 to 2016 2014 to 2015
Rate above the Secondary Threshold 13.80% 13.80% 13.80%
Rate below Upper Secondary Threshold 0.00% 0.00% N/A
Rate below Apprentice Upper Secondary Threshold 0.00% N/A N/A
Rebate for any employees in contracted-out pension schemes N/A 3.40% 3.40%
Class 1A rate on expenses and benefits 13.80% 13.80% 13.80%
Employee rates
  2016 to 2017 2015 to 2016 2014 to 2015
Between Primary Threshold and Upper Earnings Limit 12.00% 12.00% 12.00%
Above Upper Earnings Limit 2.00% 2.00% 2.00%
Rebate for employees in contracted-out workplace pension schemes N/A 1.40% 1.40%
Married women’s reduced rate between primary threshold and upper earnings limit 5.85% 5.85% 5.85%
Rate for employees deferring National Insurance 2.00% 2.00% 2.00%
Class 2
  2016 to 2017 2015 to 2016 2014 to 2015
Small Profits Threshold amount per year £5,965.00 £5,965.00 -
‘Small earnings exception’ amount per year N/A abolished £5,885.00
Rate per week £2.80 £2.80 £2.75
Class 4
£ per year 2016 to 2017 2015 to 2016 2014 to 2015
Lower Profits Limit £8,060.00 £8,060.00 £7,956.00
Upper Profits Limit £43,000.00 £42,385.00 £41,865.00
Rate between Lower Profits Limit and Upper Profits Limit 9% 9% 9%
Rate above Upper Profits Limit 2% 2% 2%
Special rates
£ per week 2016 to 2017 2015 to 2016 2014 to 2015
Special Class 2 rate for share fishermen £3.45 £3.45 £3.40
Special Class 2 rate for volunteer development workers £5.60 £5.60 £5.55
Additional Class 4 rate when deferring National Insurance 2% 2% 2%
Class 3 National Insurance (voluntary)
£ per week 2016 to 2017 2015 to 2016 2014 to 2015
Class 3 rate £14.10 £14.10 £13.90

Tax credits and benefits

Working Tax Credit
  2016-17 2015-16
  £ a year £ a year
Basic element £1,960 £1,960
Couple and lone parent element £2,010 £2,010
30 hour element £810 £810
Disabled worker element £2,970 £2,970
Severe disability element £1,275 £1,275
Childcare element    
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
% of eligible costs covered (%) 70% 70%
Child Tax Credit
  2016-17 2015-16
  £ a year £ a year
Family element £545 £545
Child element £2,780 £2,780
Disabled child element £3,140 £3,140
Severely disabled child element £1,275 £1,275
Income thresholds and withdrawal rates
  2016-17 2015-16
  £ a year £ a year
Income threshold £6,420 £6,420
Withdrawal rate (%) 41 41
First threshold for those entitled to Child Tax Credit only £16,105 £16,105
Income rise disregard £2,500 £5,000
Income fall disregard £2,500 £2,500
Child Benefit and Guardian’s Allowance
  2016-17 2015-16
  £ a year £ a year
First Child £20.70 £20.70
Second and subsequent children £13.70 £13.70
Guardian’s Allowance £16.55 £16.55

Stamp Duty Land Tax (SDLT)

This will apply in Scotland until 1st April 2015, when SDLT is devolved and replaced in Scotland by Land & Buildings Transaction Tax.

SDLT rates and thresholds for residential properties

From 4th December 2014, SDLT will be charged at each rate on the portion of the purchase price which falls within each rate band:

Property or lease premium or transfer value Rate
Up to £125,000 Zero
The next £125,000 (the portion from £125,001 to £250,000) 2%
The next £675,000 (the portion from £250,001 to £925,000) 5%
The next £575,000 (the portion from £925,001 to £1.5 million) 10%
The remaining amount (the portion above £1.5 million) 12%

From 1st April 2016, you’ll usually have to pay 3% on top of the normal SDLT rates if buying a new residential property means you’ll own more than one.

From 20th March 2014 SDLT is charged at 15% on interests in residential dwellings costing more than £500,000 purchased by certain "non-natural persons"."Non-natural persons" include companies, partnerships including a company and collective investment schemes. There are exclusions for trustees of a settlement, property rental businesses, property developers and traders, properties made available to the public, financial institutions acquiring dwellings in the course of lending, dwellings occupied by employees and farmhouses.

SDLT rates and thresholds for sales and transfers on new non-residential or mixed use land or property

Freehold sales and transfers

Property or lease premium or transfer value SDLT rate
Up to £150,000 Zero
The next £100,000 (the portion from £150,001 to £250,000) 2%
The remaining amount (the portion above £250,000) 5%

New leasehold sales and transfers

Net present value of rent SDLT rate
£0 to £150,000 Zero
The portion from £150,001 to £5,000,000 1%
The portion above £5,000,000 2%

Land & Buildings Transaction Tax (Scotland only)

Residential
Purchase price Rate
Up to £145,000 Zero
Between £145,001 and £250,000 2%
Between £250,001 and £325,000 5%
Between £325,001 and £750,000 10%
£750,001 and over 12%
Non-residential
Purchase price Rate
Up to £150,000 Zero
Above £150,000 to £350,000 3%
Above £350,000 5%

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