Income Tax Rates and Allowances
Income Tax Rates and Allowances (Table A)
| Main allowances | 2015/16 | 2014/15 |
|---|---|---|
| Personal Allowance (PA) | £10,600 | £10,000 |
| Personal Allowance (born 6.4.38-5.4.48) | 10,600 | *10,500 |
| Personal Allowance (born before 6.4.38) | *10,660 | *10,660 |
| Transferable Tax Allowance** | 1,060 | Nil |
| Blind Person's Allowance | 2,290 | 2,230 |
| Allowed only at 10% | ||
| Married Couple's Allowance (MCA) only available if born before 6.4.35 |
*8,355 |
*8,165 |
| Age-related allowances income limit (AAIL) | 27,700 | 27,000 |
PA is withdrawn at £1 for every £2 by which net income exceeds £100,000, such that PA becomes nil at income of £121,200 (2014/15: £120,000)
*These allowances are reduced by £1 for every £2 by which income exceeds AAIL. Personal allowance is reduced before MCA, until equal to normal PA. MCA is reduced to minimum £3,220 (2014/15: £3,140).
**Married couples/civil partners born after 5 April 1935 can transfer this amount of the PA between them as long as the recipient is not taxed at more than 20%.
| Rate Bands | 2015/16 | 2014/15 |
|---|---|---|
| Basic rate band (BRB) | £31,785 | £31,865 |
| Higher rate band | 31,786-150,000 | 31,866-150,000 |
| Additional rate | over 150,000 | over 150,000 |
| Tax Rates | |||
|---|---|---|---|
| Rates differ for General, Savings and Dividend income within each band: | |||
| G | S | D | |
| Basic | 20% | 20% | 10% |
| Higher | 40% | 40% | 32.5% |
| Additional | 45% | 45% | 37.5% |
If taxable general income is less than £5,000 (2014/15: £2,880), savings income is taxed at a ‘starting rate’ of nil (2014/15: 10%) until total taxable income exceeds that limit. This ‘starting rate band’ is part of the BRB.
High Income Child Benefit Charge (HICBC)
1% of child benefit for each £100 of adjusted net income between £50,000 and £60,000.
| Remittance basis charge | 2015/16 | 2014/15 |
|---|---|---|
| For non-UK domiciled individuals who have been UK resident in at least |
||
| 7 of the preceding 9 tax years | £30,000 | £30,000 |
| 12 of the preceding 14 tax years | 60,000 | 50,000 |
| 17 of the preceding 20 tax years | 90,000 | N/A |
Registered Pensions (Table B)
| 2015/16 | 2014/15 | |
|---|---|---|
| Lifetime allowance (LA) | £1.25m | £1.25m |
| Annual allowance (AA) | 40,000 | 40,000 |
| LA charge if excess drawn as | cash 55%/income 25% | |
| AA charge on excess inputs | 20%-45% | |
Annual relievable pension inputs are the higher of earnings (capped at AA) or £3,600.
Car and Fuel Benefits (Table C)
Cars
Taxable benefit is chargeable value multiplied by chargeable percentage.
Chargeable value:
Initial list price of car (including most accessories), reduced by any capital contribution (maximum £5,000) by employee when the car is first made available.Chargeable percentage:
| CO2 emissions (g/km) | Petrol | Diesel |
|---|---|---|
| 0-50 | 5% | 8% |
| 51-75 | 9% | 12% |
| 76-94 | 13% | 16% |
| Above 94 | Add 1% for every 5g/km | |
| Above 210 (petrol)/ 195 (diesel) | 37% maximum | |
Car Fuel
Where employer provides fuel for private motoring in an employer-owned car, CO2-based percentage from above table multiplied by £22,100 (2014/15 £21,700).
Employee contributions for fuel do not reduce taxable figure unless all private fuel is paid for by the employee (in which case there is no benefit charge).