TAX FACTS 2015/2016

Allowances and Reliefs

 

£ (GBP)

Personal allowance for people born after 5 April 1948

10,600

Income limit for personal allowance

100,000

Personal allowance for people born between 6 April 1938 and 5 April 1948

10,600

Personal allowance for people born before 6 April 1938

10,660

Married couple's allowance before 6 April 1935

Married couple's allowance maximum amount

8,355

Married couple's allowance minimum amount

3,220

Income Limit for personal allowances (born before 6 April 1948) 

27,700

Transferable Tax Allowance for married couples and civil partners

1,060

Blind person's allowance

2,290

Income Tax Rates

Rate on taxable income

Band, £(GBP)

Rate,%

Starting savings rate

 0 - £5,000

  0*

Basic rate

 Up to £31,785

  20**

Higher rate

 £31,786 - £150,000

  40***

Additional rate

 over £150,000

  45****

* Starting savings rate is available for savings income only. The rate 10% is not available if taxable non-savings income exceeds £5,000.
** except dividends (10%)
*** except dividends (32.5%)
**** except dividends (37.5%)

National Insurance Contributions

Weekly earnings £(GBP)

Not contracted out

Class I (employment) Employee’s rate

 

Up to 155

Nil

155.01 to 815

12%

Earnings over 815

2%

Employment allowance, per employer, per year

£2,000

Employer’s rates  

 

Up to 156

Nil

Above 156

13.8%

Class 2

Annual small earning exception is £5,965 per year
Class 2 rate per week is £2.80

 

Class 4

Lower annual earnings limit is £8,060

 

Upper annual earnings limit is £42,385

 

Class 4 rate between lower and upper earnings limit

9%

Class 4 rate above upper earnings limit

2%

Capital Gains Tax

Higher rate taxpayers

                                                 28%

Standard rate taxpayers

                                                 18%

Rates for trustees and personal representatives

                                                 28%

Individual annual exemption 

                                          £11,100

Trusts annual exemption 

                                            £5,550

Entrepreneurs’ relief life time limit

                                           £10,000,000

Entrepreneurs' rate

                                                  10%

 

Individual Savings Accounts (ISAs) After 1 July 2014 

Max annual contributions – Total overall annual investment limit a combination of amounts between a Cash and Stocks and Shares NISA, up to the overall annual limit of £15,240

 

Stamp Duty (from 4 December 2014) 

From 4 December 2014 the SDLT rates were changed by a new regime under which you will only pay the rate of tax on the part of the property price within each tax band.

Residential 

£125,000 or less

Nil

On the next £125,000

2%

On the next £675,000

5%

On the next £575,000

10%

On the rest (above £1,500,000)

12%

Non-residential

£150,000 or less  - annual rent less than 1,000

Nill

 £150,000 or less  - annual rent 1,000 or more

1%

£150,001 – 250,000 

1%

£250,001-500,000 

3%

Over £500,000

4%

Shares and Securities

            Standard rate - 0.5%, higher rate - 1.5%

 

Capital Allowances 

Annual investment allowance on new purchase of plant and machinery  from 1 April 2015 to 31 December 2015

£500,000

Annual investment allowance on new purchase of plant and machinery from 1 January 2016

£25,000

First year allowance (FYA) for business expenditure on new low rate (110g/km) emission vehicles

100%

 

 

Writing-down allowances

%

Integral features

8

Long Life assets

8

Other plant and machinery

18

Industrial/agricultural buildings

Nil

Vehicles with emissions less than or equal to 95g/km

100%

Vehicles with emissions between 96g/km and 130g/km

18

Vehicles with emissions over 130g/km

8

 

Annual Tax on Enveloped Dwellings

Property value is from £1 million to £2 million

£7,000 *

Property value is from £2 million to £5 million

£23,350

Property value is from £5 million to £10 million 

£54,450

Property value is from £10 million to £20 million

£109,050

Property value is above £20 million

£ 218,200

Disposal of ATED property gains are subject to capital gain tax

28%

*From 1 April 2016, there will be an ATED charge of £3,500 per year for a property value is from £500,000 to £999,999.

 

Corporation Tax

Taxable profit £ (GBP)s

Small businesses (0 - 300,000)

20%

300,001 - 1,500,000

20%

Main rate for businesses (over 1,500,000)

20%

 

VAT 

Standard Rate

20%

Lower Rate

5%

Zero Rate

0%

Annual Turnover Limits for registration - last 12 months or if turnover is going to exceed within the next 30 days

£ 81,000

Annual Turnover Limits for de-registration

£ 79,000

 

Inheritance tax

£1 – 325,000 (Lifetime limit)

0% *

Over £325,000

40% **

Annual Exemption

 

Annual gifts per donor per year

£3,000

Small gifts per donee per year

£250

wedding gifts to each of your children

£5,000

wedding gifts to each grandchild

2,500

Wedding gifts to others

£1,000

*If someone’s estate is less than the Inheritance Tax threshold of £325,000, the remaining threshold can be transferred to their husband, wife or civil partner’s estate when they die.

** If the value of your estate, if you donate at least 10 per cent of your total assets to charity, tax may be reduced to 36%.


Non Domiciled Remittance Basis

Remittance Basis Charges (RBC)

 

Unremitted income less than 2,000

0%

Resident in the UK at least 7 of previous 9 tax years

£30,000

Resident in the UK at least 12 of previous 14 tax years

£60,000

Resident in the UK at least 17 of previous 20 tax years

£90,000

Personal allowance

0%

Capital Gains Tax Annual Exemption

0%

Capital gain Tax rate

18%/28%

 

 Pension Schemes Allowance

Annual Allowance

£40,000

Lifetime Allowance

£1.25m

 

Tax efficient Savings and Investment

Venture Capital Trust up to

£200,000

Seed Enterprise Investment Scheme up to

£100,000

Enterprise Investment Scheme

£1,000,000

Social Investment Tax Relief

£1,000,000

 

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