Rates And Allowances

Current Tax Year: 2015 - 16

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

£ per year (unless stated) 2015-16 (£) 2014-15 (£) 2013-14 (£)
 
Income tax
Personal allowance (age under 65) * 10,600 10,000 9,440
Personal allowance (age 65-74) 10,600 10,500 10,500
Personal allowance (age 75 and over) 10,660 10,660 10,660
 
Married couple's allowance** 8,355 8,165 7,915
Married couple's allowance** - minimum amount 3,220 3,140 3,040
Income limit for age-related allowances 27,700 27,000 26,100
Blind person’s allowance 2,290 2,230 2,160
Marriage allowance**** 1,060 - -
       
Starting rate band of 0% on savings income up to 5,000 - -
Starting rate band of 10% on savings income up to - 2,880 2,790
Basic rate of 20% on income; 10% on dividend income 0 - 31,785 0 - 31,865 0 - 32,010
Higher rate of 40% on income; 32.5% on dividend income 31,786 - 150,000 31,866 - 150,000 32,011 - 150,000
Additional rate of 45% on income over; 37.5% on dividend income Over 150,000 Over 150,000 Over 150,000
 
Capital gains tax 
Annual exempt ammount      
Individuals, personal representatives and trustees for disabled people 11,100 11,000 10,900
Other trustees 5,550 5,500 5,450
Rates      
Individuals - within the remaining basic rate band 18% 18% 18%
Individuals - above the basic rate band 28% 28% 28%
Trustees or personal representatives of someone who has died 28% 28% 28%
For gains qualifying for Entrepreneurs' Relief 10% 10% 10%
       
Inheritance tax
Rate 40% 40% 40%
Lower Rate *** 36% 36% 36%
Nil rate band 325,000 325,000 325,000
 
Pension scheme allowances
Annual Allowance 40,000 40,000 50,000
Lifetime Allowance 1,250,000 1,250,000 1,500,000

* Personal allowance reduced by 50% of income over £100,000.

** Married couple's allowance is given as a 10% tax credit. Either person must be born before 6th April 1935.

*** For deaths on or after 6th April 2012, a lower rate of Inheritance tax of 36% can apply where 10% or more of the deceased person's net estate is left to charity.

****You can claim Marriage Allowance if all the following apply:

  1. you’re married or in a civil partnership
  2. your annual income is £10,600 or less, plus up to £5,000 of tax-free savings interest
  3. your partner’s annual income is between £10,601 and £42,385
  4. you were born on or after 6 April 1935

 

Corporation tax

£ per year Y/E 31.03.2016 (%) Y/E 31.03.2015 (%) Y/E 31.03.2014 (%)
£0 - £300,000 20 20 20
£300,001 - £1,500,000 N/a Marginal relief Marginal relief
£1,500,001 or more 20 21 23

The upper (£1.5m) and the lower (£300k) limits are divided by the number of associated companies controlled by a person.

 

National Insurance

£ per week (unless stated) 2015-16 2014-15 2013-14
Lower earnings limit, primary Class 1 £112 £111 £109
Upper earnings limit, primary Class 1 £815 £805 £797
Upper accruals point £770 £770 £770
Primary threshold £155 £153 £149
Secondary threshold £156 £153 £148
Employees’ primary Class 1 rate between primary threshold and upper earnings limit 12% 12% 12%
Employees’ primary Class 1 rate above upper earnings limit 2% 2% 2%
Employees’ contracted-out rebate (for contracted-out salary-related schemes only) 1.4% 1.4% 1.4%
Married women’s reduced rate between primary threshold and upper earnings limit 5.85% 5.85% 5.85%
Married women’s rate above upper earnings limit 2% 2% 2%
Employers’ secondary Class 1 rate above secondary threshold 13.8% 13.8% 13.8%
Employers’ contracted-out rebate, salary-related schemes 3.4% 3.4% 3.4%
Class 2 rate  £2.80 £2.75 £2.70
Class 2 Small Profits Threshold £5,965 - -
Class 2 Small earnings exception (per year) - £5,885 £5,725
Special Class 2 rate for share fishermen £3.45 £3.40 £3.35
Special Class 2 rate for volunteer development workers £5.60 £5.55 £5.45
Class 3 rate (per week) £14.10 £13.90 £13.55
Class 4 lower profits limit (per year) £8,060 £7,956 £7,755
Class 4 upper profits limit (per year) £42,385 £41,865 £41,450
Class 4 rate between lower profits limit and upper profits limit 9% 9% 9%
Class 4 rate above upper profits limit 2% 2% 2%

 

Tax credits and benefits

£ per year (unless stated) 2015-16 2014-15 2013-14
 
Working Tax Credit
Basic element £1,960 £1,940 £1,920
Couple and lone parent element £2,010 £1,990 £1,970
30 hour element £810 £800 £790
Disabled worker element £2,970 £2,935 £2,855
Severe disability element £1,275 £1,255 £1,220
 
Childcare element of the Working Tax Credit
Maximum eligible cost for one child £175 per week £175 per week £175 per week
Maximum eligible cost for two or more children £300 per week £300 per week £300 per week
Percentage of eligible costs covered 70% 70% 70%
 
Child Tax Credit
Family element £545 £545 £545
Child element £2,780 £2,750 £2,720
Disabled child element £3,140 £3,100 £3,015
Severely disabled child element £1,275 £1,255 £1,220
 
Income thresholds and withdrawal rates
Income threshold £6,420 £6,420 £6,420
Withdrawal rate 41% 41% 41%
Threshold for those entitled to Child Tax Credit only £16,105 £16,010 £15,910
Income rise disregard £5,000 £5,000 £5,000
Income fall disregard £2,500 £2,500 £2,500
       
Child benefit and guardian’s allowance rates
£ per week      
First child 20.70 20.50 20.30
Second and subsequent children (per child)  13.70 13.55 13.40
Guardian’s allowance 16.55 16.35 15.90

 

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, the rules for calculating the stamp duty land tax (SDLT) charged on the purchases of residential properties changed. Previously it had been calculated on a "slab basis" and therefore charged at a single percentage of the purchase price paid for the property, depending on the rate band within which the purchase price fell. But 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 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

Purchase price/ lease premium or transfer value Rate
Up to £150,000 - if annual rent is under £1,000 Zero
Up to £150,000 - if annual rent is £1,000 or more 1%
£150,001 to £250,000 1%
£250,001 to £500,000 3%
Over £500,000 4%

 

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 4.5%

 

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