Income Tax
| (£ per year unless stated otherwise) | 2015-16 | 2014-15 | 2013-14 |
|---|---|---|---|
| Income Tax | |||
| Personal Allowance (Under Age 65)* | 10600 | 10000 | 9440 |
| Personal Allowance (Between Ages 65-74) | 10600 | 10500 | 10500 |
| Personal Allowance (Over Age 75) | 10660 | 10660 | 10660 |
| Married Couple's Allowance** | 8355 | 8165 | 7915 |
| Married Couple's Allowance – Minimum Amount** | 3220 | 3140 | 3040 |
| Income Limit for Age-Related Allowances | 27700 | 27700 | 26100 |
| Blind Person's Allowance | 2290 | 2230 | 2160 |
| Marriage Allowance**** | 1060 | / | / |
| Starting Rate Band of 0% on Savings Income up to | 5000 | / | / |
| Starting Rate Band of 10% on Savings Income up to | / | 2880 | 2790 |
| Basic Rate of 20% on Income; 10% on Dividend Income | 0-31785 | 0-31865 | 0-32010 |
| Higher Rate of 40% on Income; 32.5% on Dividend Income | 31786-150000 | 31866-150000 | 32011-150000 |
| Additional Rate of 45% on Income Over; 37.5% on Dividend Income | 150000+ | 150000+ | 150000+ |
| Capital Gains Tax | |||
| Annual Exempt Amount | |||
| Individuals; Personal Representatives and Trustees for Disabled People | 11100 | 11000 | 10900 |
| Other Trustees | 5550 | 5500 | 5450 |
| 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 Entrepreneur's Relief | 10% | 10% | 10% |
| Inheritance Tax | |||
| Rate | 40% | 40% | 40% |
| Lower Rate*** | 36% | 36% | 36% |
| Nil Rate band | 325000 | 325000 | 325000 |
| Pension Scheme Allowances | |||
| Annual Allowance | 40000 | 40000 | 50000 |
| Lifetime Allowance | 1250000 | 1250000 | 1250000 |
*Personal Allowance is reduced by 50% of income over £100000.
**Married Couple’s Allowance is given as a 10% tax credit. One or both persons must be born before 6th April 1935.
***For deaths occurring on or after 6th April 2012, a lower rate of inheritance tax of 36% can apply where 10% or more of the deceased’s net estate is left to charitable causes.
****You can claim Marriage Allowance if all of the following conditions apply:
You’re married, or in a Civil Partnership
Your Annual Income is £10600 or less, plus up to £5000 of tax-free savings interest
Your Partner’s Annual Income is between £10601 and £42385
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 (%) |
|---|---|---|---|
| 0-300000 | 20 | 20 | 20 |
| 300001-1500000 | / | Marginal Relief | Marginal Relief |
| 1500001+ | 20 | 21 | 23 |
The upper (£1.5m) and 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 |
| Employee's Primary Class 1 Rate between Primary Threshold and Upper Earnings Limit | 12% | 12% | 12% |
| Employee's Primary Class 1 Rate above Upper Earnings Limit | 2% | 2% | 2% |
| Employee's 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% |
| Employer's secondary Class 1 rate above secondary threshold | 13.7% | 13.8% | 13.8% |
| Employer's contracted-out rebate; salary-related schemes | 3.4% | 3.4% | 3.4% |
| Class 2 Rate | £2.80 | £2.75 | £2.70 |
| Class 2 Small Profit's Threshold | £5965 | / | / |
| Class 2 Small Earnings Exception (per year) | / | £5885 | £5725 |
| 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) | £8060 | £7956 | £7755 |
| Class 4 Upper Profits limit (per year) | £42385 | £41865 | £41450 |
| Class 4 rate between lower profits limit and upper profits limit | 9% | 9% | 9% |
| Class 4 rate above Upper profits limit | 2% | 2% | 2% |
The upper (£1.5m) and lower (£300k) limits are divided by the number of associated companies controlled by a person.
Tax Credits and Benefits
| (£ per year unless stated) | 2015-16 | 2014-15 | 2013-14 |
|---|---|---|---|
| Working Tax Credit | |||
| Basic Element | 1960 | 1940 | 1920 |
| Couple and Lone Parent Element | 2010 | 1990 | 1970 |
| 30 Hour Element | 810 | 800 | 790 |
| Disabled Worker Element | 2970 | 2935 | 2855 |
| Severe Disability Element | 1275 | 1255 | 1220 |
| Childcare Element of the Working Tax Credit | |||
| Maximum eligible cost for one child | 127 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 | 2780 | 2750 | 2720 |
| Disabled Child Element | 3140 | 3100 | 3015 |
| Severely Disabled Child Element | 1275 | 1255 | 1220 |
| Income Thresholds and Withdrawal Rates | |||
| Income Threshold | 6420 | 6420 | 6420 |
| Widthdrawal Rate | 41% | 41% | 41% |
| Threshold for those entitled to Child Tax Credit only | 12105 | 16010 | 15910 |
| Income Rise Disregard | 5000 | 5000 | 5000 |
| Income Fall Disregard | 2500 | 2500 | 2500 |
| 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 Sllowance | 16.55 | 16.35 | 15.90 |
Stamp Duty Land Tax (SDLT)
SDLT will apply in Scotland up until 1st April 2015, when SDLT is devolved and replaced in Scotland by the 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 |
|---|---|
| £0 – 125000 | 0% |
| 125001 – 250000 | 2% |
| 250001 – 925000 | 5% |
| 925001 – 1500000 | 10% |
| 1500000+ | 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.
Land & Buildings Transaction Tax (Scotland Only)
| Residential | |
|---|---|
| Purchase Price (£) | Rate (%) |
| 0-145000 | 0% |
| 145002-250000 | 2% |
| 250001-325000 | 5% |
| 325001-750000 | 10% |
| 750001+ | 12% |
| Non-Residential | |
| Purchase Price (£) | Rate (%) |
| 0-150000 | 0% |
| 150000-350000 | 3% |
| 350000+ | 4.5% |