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TAX RATES & ALLOWANCES 2015/16

Here is a useful summary of key tax rates and allowances for the 2015-16 tax year:

Income Tax Rates

First £31,785 of taxable income

£31,786 to £150,000

Excess over £150,000

20%

40%

45%

The equivalent rates applicable to dividends are a 10% ordinary rate, a 32.5% dividend upper rate and a dividend additional rate of 37.5% (less a deductible 10% tax credit in each case)

*Starting rate on savings income

0% (up to £5,000)

*Not available where taxable non-savings income exceeds the £5,000

Personal Allowances

Individuals born after 5 April 1948

Individuals born before 6 April 1938

£10,600

£10,660*


Note the Personal Allowance reduces where total income is above £100,000 by £1 for every £2 of income above the £100,000 limit which applies irrespective of age. 

*Reduced by £1 for every £2 of income above £27,700 until the basic personal allowance of £10,600 is reached.

Transferable marriage allowance

£1,060

National Insurance Contributions

Employee Class 1

Employer Class 1

Employer Class 1A

Self Employed:

Class 4

Class 2

12% (on income between £8,060pa and £42,385pa, then 2% above)

13.8% (on income above £8,112pa ~ no ceiling)

13.8% (on employee taxable benefits)


9% (on profits between £8,060 and £42,385, then 2% above)

£2.80 per week (small earnings exception £5,965pa)

Employment Allowance (new from 2014-15)

Per business

£2,000 offset against employer's Class 1 NIC

Car Benefits

CO2 50gms/km or less

CO2 51~75g/km

CO2 76~94g/km

CO2 95~210g/km

CO2 210g/km and over

5% of list price (8% diesels)

9% of list price (12% diesels)

13% of list price (16% diesels)

14% of list price (17% diesels) increasing by 1% for every additional 5gms until 210 g/km reached

37% of list price (37% diesels)

Fuel Benefits

Relevant car fuel % multiplied by £22,100

Private Use of Vans

Taxable benefit

Fuel benefit

£3,150

£594

No charge where personal use limited to home-work journeys

Tax-Free Mileage Allowance ~ Own Vehicle

Cars ~ first 10,000
business miles:

Thereafter

45p per mile

25p per mile

Corporation Tax

Tax rate

20% (from 1 April 2015 applicable to all levels of profit)

Capital Allowances

Annual investment allowance

~ Until 31 December 2015

~ From 1 January 2016

Main pool

Special rate pool

Motor Cars



100% on first 500,000pa of qualifying expenditure

100% on first 25,000pa (tbc)

18% writing down allowance

8% writing down allowance

100% where CO2 emissions of 75gms/km or less
18% where CO2 between 76-130gms/km
8% where CO2 131gms/km or more

Research & Development

Capital expenditure

Revenue expenditure

Revenue expenditure

100% allowance

230% (small and medium sized companies)

130% (large companies)

ISA Limits

Overall Limit

Junior ISA limit

£15,240

£4,080

Capital Gains Tax

Annual exemption

Up to basic rate limit

Above basic rate limit

Entrepreneurs' rate

Chattels exemption

First £11,100 of gains

18%

28%

10% (up to lifetime limit of £10 million gains)

£6,000 (per item)

Inheritance Tax

Nil rate band

Death rate

Lifetime rate

Annual exemption

Marriage exemption

Small gifts limit

Business property

£325,000 per individual (note 1)

40% on excess over nil rate band (note 2)

20% on certain transfers into trust

£3,000 (per donor per year)

£1,000 ~ £5,000 (depending upon donor
/donee relationship

£250 (per donee per year)

100% or 50% relief

(1) Unused proportion of nil rate band can be claimed by surviving spouse or civil partner
(2) Reduced rate of 36% applies where deceased leaves 10% or more of net estate to charity

Value Added Tax

Standard Rate

Reduced Rate

Registration limit

De-registration limit

Flat rate scheme

Cash accounting scheme

Annual accounting scheme

20%

5% (e.g. domestic fuel)

£82,000 annual taxable turnover

£80,000

£150,000 turnover limit

£1,350,000 turnover limit

£1,350,000 turnover limit

Stamp Duties ~Land & Buildings (rate applies to each band)

Residential Properties

Value up to £125,000

£125,001 to £250,000

£250,001 to £925,000

£925,001 to £1.5million

Over £1.5 million


0%

2%

5%

10%

12%

Note a 15% rate applies to properties over £500,000 purchased by companies and certain other ‘non-natural entities’

Non-Residential Properties

Value up to £150,000

£150,001 to £250,000

£250,001 to £500,000

Over £500,000

(rate applicable to total consideration)

0%

1%

3%

4%

Previous Years Rates

For a list of rates & allowances for earlier tax years visit the following link at HM Revenue & Customs website: http://www.hmrc.gov.uk/rates/index.htm

Marsh Vision App

The App can be downloaded free onto your iPhone, iPad or Android phones. It’s packed full of some really useful Tax Tables, Calculators and important dates, all of which you will be able to access for free, anywhere you have internet connection on your device.

http://www.marshvision.com/marsh-vision-app.asp