2015/2016 Tax Rates and Allowances

Income tax
  2015/16 2014/15
Starting rate 0% (10% 2014/15) £5,000 £2,880
Basic rate 20% (7.5% for dividends above £5,000) £31,785 £31,865
Higher rate 40% (32.5% for dividends)

£31,786 -

£150,000

£31,866 - £150,001
Additional rate 45% (37.5% for dividends) £150,001+ £150,001+
Starting rate for savings 20% 20%
Personal Allowances
  2015/16 2014/15
Born after 5 April 1948 £10,600 £10,600
If born between 6 April 1938 and 5 April 1948* £10,600

£10,500

If born before 6 April 1938* £10,660 £10,660
Income limit for age-related allowances £27,700   £27,000
 
*Reduced by £1 for every £2 above income limit, but will not reduce below basic Personal Allowance unless income over £10,000
Pensions
  100% of net relevant earnings or £3,600 if higher

Annual allowance

100% of net relevant earnings or £3,600 if higher

capped at:

£40,000

2015/16
Note: Ability to utilise unused annual allowances of up to £40,000 for 2015 and £50,000 per year for previous 2 tax years if member of defined benefit or contribution scheme in previous 3 years
Lifetime limit £1.25 million
 
Amounts exceeding lifetime limit taxed at 55% if extracted as a lump sum, or 25% if not
 
Inheritance Tax
Exempt transfers:
Gifts to UK domiciled spouse
Gifts to charity
Overseas domiciled spouse up to £325,000
Annual exemption £3,000
Small gifts £250
Wedding gifts - £5000 child, £2500 grandchild or remoter issue, £1000 other
Non UK assets held by a non domiciled individual
Nil rate band: £325,000 (14/15 £325,000)
Rate of tax at death 40%*
*36% where 10% of estate left to charity
Lifetime tax rate 20%
No tax on transfers to individuals unless death within 7 years
Reduced tax charge on gifts made when death is within 7 years
Years:
0-3 3-4 4-5 5-6 6-7
% taxable
100 80 60 40 20
Capital Gains Tax
  2015/16 2014/15
Individual Exemption £11,100 £11,000
Chattels Exemption £6,000 £6,000
Trusts exemption £5,550 £5,500
Transfers between husband and wife living together are exempt.
Main Rate 28% 28%
Basic Rate 18% 18%
Entrepreneurs Rate* 10% 10%
* Available on first £10 million (of eligible gains in lifetime
 
Corporation Tax
Year commencing 1 April 2015 1 April 2014
Profits    
£0- £300,000 20% 20%
£300,000- £1,500,000 20.00% 21.3%
£1,500,001+ 20% 21%
NB: Associated companies reduce band levels
Main Capital Allowances
Motor cars (based on CO2 emissions)
Less than 75g/km CO2 - 100%;
93-130g/km CO2 - 18% rb;
More than 130g/km CO2 - 8% rb
 
Plant & Machinery * - 18% rb
Computer Equipment * - 18% of rb
 
Integral features - 8% rb
Goodwill - 4%
   

* Annual Investment Allowance- 100% allowance on certain capital expenditure up to £50,000 pa to April 2015, reducing to £25,000 January 2016.

rb = reducing balance

 

Value Added Tax
Standard Rate
From 1st January 2015 20.00%
   
VAT fraction
From 1st January 2015 1/6
   
Turnover registration limit £82,000
Turnover deregistration limit £80,000
Cash/annual accounting registration limit £1.35m excl. VAT
Cash/annual accounting £1.6m excl. VAT
Flat rate scheme income £150,000 excl. VAT
Flat rate scheme income deregistration limit £230,000 incl. VAT
VAT Scale Charge: Now based upon the CO2 Emissions of the vehicle concerned
NI Contributions
2015/16
Class 1 Employer Employee
Weekly earnings % of all earnings
£0 - £112 NIL NIL
£113-155 0.00% 0%
£156 - £815 13.80% 12%
Over £815 13.80% 2%
The above rates apply to those not contracted out of S2P.
Class 1A Employer 13.80%
Class 2* S/Employed £2.80 pw
Class 3 Voluntary £14.10 pw
Class 4 S/Employed  
  £0-£8,060 0%
  £8,061 - £42,385 9%
  Over £42,385 2%
* Payable on net earnings over £5,965 (14/15 £5,885)
Vehicle Benefits
Chargeable on employees and directors earning £8,500 or over (including benefits)
Car Benefit*: This is now calculated as a percentage of the original list price of the vehicle.

Car Fuel Benefit*: This is now calculated as a percentage of a fixed sum of £22,100.

* Percentage used will be dependent on the level of CO2 vehicle emissions
Van benefit per vehicle: £3,150 if there is any private use. Travel between home and work is no longer considered private use
Van Fuel Benefit: £594
 
Mileage Allowances
The maximum tax-free mileage allowances for employees using their own cars for business are as follows:
2015/16 First 10,000 Miles 10,000+ miles
Car & Van 45p 25p
Motorcycle 24p 24p
Bicycle 20p 20p
Notes: 1 Payments in excess of approved rates are taxable 2 Where payments are made at rates less than the approved rates, employees can claim tax relief on shortfall
 
Stamp Duty Land Tax

Residential Properties

SDLT is charged at the following rates for each portion of the purchase price.

Property purchase price SDLT rate
Up to £125,000 0%
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%

SDLT is charged at a flat rate of 15% on residential properties costing more than £500,000 purchased by certain corporate bodies

 

Non-residential or mixed use property

SDLT is charged at the flat rates below

Purchase price/lease premium or transfer value SDLT rate
Up to £150,000 - if annual rent is under £1,000 0%
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%

Different rates apply to new residential and non-residential leaseholds.

 

Annual Tax on Enveloped Dwellings (ATED)

ATED may be payable annually on UK residential properties owned partly or wholly by certain corporate bodies, at the following rates:

Property value 2015/16 2014/15
More than £1 million but not more than £2 million £7,000 -
More than £2 million but not more than £5 million £23,350 £15,400
More than £5 million but not more than £10 million £54,450 £35,900
More than £10 million but not more than £20 million £109,050 £71,850
More than £20 million £218,200 £143,750