2015/16 Income Tax

  2015-16 2014-15
Basic Rate Band – income up to £31,785 £31,865
Starting rate for savings 0%* 10%*
Basic rate 20% 20%
Dividend ordinary rate 10% 10%
Higher Rate Band – income over £31,78 £31,865
Higher rate 40% 40%
Dividend upper rate 32.5% 32.5%
Additional Rate – income over £150,000 £150,000
Additional rate 45% 45%
Dividend upper rate 37.5% 37.5%
Starting rate limit (savings income) £5,000* £2,880*

* If an individual’s taxable non-savings income exceeds starting rate limit, then starting rate limit for savings will not be avilable for savings income.  For 2016/17, £1,000 of saving income for basic rate raxpayers (£500 for higher rate) may be tax-free.

 

Personal allowances (PA)

  2015-16 2014-15
Born after 5th April 1948 / under 65 £10,600 £10,000
Born before 6th April 1938 and before 6th April 1948 £10,600* £10,500*
Born before 6th April 1938 £10,660* £10,660*

 

Married couple’s allowance (MCA) (relief 10%)

  2015-16 2014-15
Either partner born before 6th April 1935 £8,355* £8,165*

 

Transferable Tax Allowance

  2015-16 2014-15
for certain married couples (relief 20%) £1,060 -

* Allowances for those born before 6th April 1948 are reduced by £1 for every £2 that adjusted net income exceeds £27,700 (£27,000) to a minimum PA of £10,600 (£10,000) and to a minimum MCA of £3,220 (£3,140). Where adjusted net income exceeds £100,000, PA is reduced in the same way until it is nil regardless of the individual’s date of birth.

 

Tax Shelters

  2015-16 2014-15
Venture Capital Trust up to £200,000 £200,000
Enterprise Investment Scheme up to £1,000,000 £1,000,000
Seed Enterprise Investment Scheme up to £100,000 £100,000
Social Investment Tax Relief £1,000,000 £1,000,000

 

Tax Free Savings Accounts

  2014/15
ISA Subscription Limit £15,240
Junior ISA and CTF subscription limit £4,080