|Income Tax allowances table|
|Income Tax allowances||2014-15||2015-16||2016-17|
|Personal Allowance for people born after 5 April 1948 (1)||£10,000||£10,600||£11,000|
|Income limit for Personal Allowance||£100,000||£100,000||£100,000|
|Personal Allowance for people born between 6 April 1938 and 5 April 1948 (1) (2)||£10,500||£10,600||£11,000|
|Personal Allowance for people before 6 April 1938 (1) (2)||£10,660||£10,660||£11,000|
|Married Couple's Allowance (born before 6th April 1935 and aged 75 and over) (2) (3)||£8,165||£8,355||£8,355|
|Income limit for the allowances for those born before 6 April 1948||£27,000||£27,700||£27,700|
|Minimum amount of Married Couple's Allowance||£3,140||£3,220||£3,220|
|Marriage Allowance (4)||N/A||£1,060||£1,100|
|Blind Person's Allowance||£2,230||£2,290||£2,290|
|Personal Savings Allowance - Basic Rate (1)||N/A||N/A||£1,000|
|Personal Savings Allowance - Higher Rate (1)||N/A||N/A||£500|
|Dividend Allowance (2)||N/A||N/A||£5,000|
|Income Tax rates and taxable bands|
|Starting rate for savings: 10%/0% (1) (2)||£0-£2,880||£0-£5,000||£0-£5,000|
|Basic rate: 20% (3)||£0-£31,865||£0-£31,785||£0-£32,000|
|Higher rate: 40% (3)||£31,866-£150,000||£31,786-£150,000||£32,001-£150,000|
|Additional rate: 45% (3)||Over £150,000||Over £150,000||Over £150,000|
(1) The 10 per cent starting rate applies to savings income only. If, after deducting your Personal Allowance from your total income liable to Income Tax, your non-savings income is above this limit then the 10 per cent starting rate for savings will not apply. Non-savings income includes income from employment, profits from self-employment, pensions, income from property and taxable benefits.
(2) WEF 2015-16, the starting rate for savings is zero percent.
(3) The rates available for dividends are the 7.5 per cent ordinary rate (within Basic rate band), the 32.5 per cent dividend upper rate (within Higher rate) and the dividend additional rate of 38.1 per cent.
|National Insurance contributions - rates and allowances|
|£ per week||2014-15||2015-16||2016-17|
|Lower earnings limit, primary Class 1||£111||£112||£112|
|Upper earnings limit, primary Class 1||£805||£815||£827|
|Upper accrual point||£770||£770||N/A|
|Employees' primary Class 1 rate between primary threshold and upper earnings limit||0.12||0.12||0.12|
|Employees' primary Class 1 rate above upper earnings limit||0.02||0.02||0.02|
|Class 1A rate on employer provided benefits (1)||0.138||0.138||0.138|
|Employees' contracted-out rebate (for contracted-out salary related schemes only)||0.014||0.014||N/A|
|Married women's reduced rate between primary threshold and upper earnings limit||0.0585||0.0585||0.0585|
|Married women's rate above upper earnings limit||0.02||0.02||0.02|
|Employers' secondary Class 1 rate above secondary threshold||0.138||0.138||0.138|
|Employers' contracted-out rebate, salary-related schemes||0.034||0.034||N/A|
|Class 2 rate||£2.75||£2.80||£2.80|
|Class 2 small earnings exception||£5,885||N/A||N/A|
|Class 2 small profits threshold||N/A||£5,965||£5,965|
|Special Class 2 rate for share fishermen||£3.40||£3.45||£3.45|
|Special Class 2 rate for volunteer development workers||£5.55||£5.60||£5.60|
|Class 3 rate||£13.90||£14.10||£14.10|
|Class 4 lower profits limit||£7,956||£8,060||£8,060|
|Class 4 upper profits limit||£41,865||£42,385||£43,000|
|Class 4 rate between lower profits limit and upper profits limit||0.09||0.09||0.09|
|Class 4 rate above upper profits limit||0.02||0.02||0.02|
|Additional primary Class 1 percentage rate on deferred employments||0.02||0.02||0.02|
|Additional Class 4 percentage rate where deferment has been granted||0.02||0.02||0.02|
|Rates for financial years starting on 1 April|
|Small profits rate*||20%*||20%*||20%*|
|Small profits rate can be claimed by qualifying companies with profits at a rate not exceeding||£300,000||N/A||N/A|
|Marginal Relief Lower Limit||£300,000||N/A||N/A|
|Marginal Relief Upper Limit||£1,500,000||N/A||N/A|
|Main rate of Corporation Tax*||21%*||20%*||20%*|
|Special rate for unit trusts and open-ended investment companies||20%*||20%*||20%*|
The main rate of Corporation Tax applies when profits (including ring fence profits) are at a rate exceeding £1,500,000, or where there is no claim to another rate, or where another rate does not apply.
In addition to the rates set out in the above table, the main rate of Corporation Tax for 2016 is set at 20 per cent. The small profits rate will be unified with the main rate, so from 1 April 2015 there will be only one Corporation Tax rate for non-ring fence profits - set at 20 per cent.
*For companies with ring fence profits (income and gains from oil extraction activities or oil rights in the UK and UK Continental Shelf) these rates differ. The small profits rate of tax on those profits is 19 per cent and the ring fence fraction is 11/400 for financial years starting 1 April 2013, 2014 and 2015. The main rate is 30 per cent for financial years starting on 1 April 2013, 2014 and 2015.
Indexation Allowance allows for the effects of inflation when calculating the chargeable gains of companies or organisations.
Each tax year nearly everyone who is liable to Capital Gains Tax gets an annual tax-free allowance - known as the 'Annual Exempt Amount'. You only pay Capital Gains Tax if your overall gains for the tax year (after deducting any losses and applying any reliefs) are above this amount.
The annual tax-free allowance (known as the Annual Exempt Amount) allows you to make a certain amount of gains each year before you have to pay tax.
Nearly everyone who is liable to Capital Gains Tax gets this tax-free allowance.
There's one Annual Exempt Amount for:
Most other trustees get a lower Annual Exempt Amount.
|Individuals, personal representatives and trustees for disabled people||£11,000||£11,100||£11,100|
You can use your Annual Exempt Amount against the gains charged at the highest rates to minimise the tax you owe. See the section on 'Rates for Capital Gains Tax' below for an example.
If you're acting as an executor or personal representative for a deceased person's estate, you may get the full Annual Exempt Amount during the 'administration period'. You are entitled to the Annual Exempt Amount for the tax year in which the death occurred and the following two tax years. After that there's no tax-free allowance against gains during the administration period.
If you're acting as a trustee for a disabled person you use the higher Annual Exempt Amount above - and not the rate for 'other trustees'.
A disabled person in this context is a person who has mental health problems or receives the middle or higher rate of Attendance Allowance or Disability Living Allowance.
You won't get the Annual Exempt Amount if you're 'non-domiciled' in the UK and you've claimed the 'remittance basis' of taxation on your foreign income and gains (unless you are dual resident in the UK and the double taxation agreement between the UK and the other country in which you are resident allows it to be claimed).
You may be 'non-domiciled' in the UK, for example, if you were born in another country and intend to return there.
You may have claimed the 'remittance basis' if you have income and gains from abroad and have decided that it's beneficial to be taxed on the foreign income and gains that you bring into the UK, rather than on all income and gains that arise.
Issues of domicile and tax on foreign gains are complicated. For example, the above rules may not apply if your unremitted income is less than £2,000. A lot depends on the facts of each case. You can find out more by following the link below. Or speak to your Tax Office about your specific circumstances.
|Residential Property: Individuals - Basic rate band||18%||18%||18%|
|Residential Property: Individuals - Higher rate band||28%||28%||28%|
|Residential Property: Trustees & Personal Representatives||28%||28%||28%|
|Other Assets: Individuals - Basic rate band||18%||18%||10%|
|Other Assets: Individuals - Higher rate band||28%||28%||20%|
|Other Assets: Trustees & Personal Representatives||28%||28%||20%|
|Gains qualifying for Entrepreneurs Relief||10%||10%||10%|
Whilst Trustees and Personal Representatives pay CGT at the above flat rates, an Individual needs to work out their total taxable income before working out which Capital Gains Tax rate to use.
If you have gains which are charged at different rates, you need to decide how to use your Annual Exempt Amount. You use it against the gains charged at the highest rates to minimise the tax you owe
|Nil Rate Band (1)||£325,000||£325,000||£325,000|
|Gross rate on death||40%||40%||40%|
|Reduced rate on death (2)||36%||36%||36%|
|Lifetime transfer rate||20%||20%||20%|
(1) any Nil Rate Band which is unused on a person's death can be transferred to the surviving spouse or civil partner
(2) A reduced rate of 36% applies where at least 10% of the net estate is left to a registered charity
Stamp Duty Land Tax (SDLT) is charged on land and property transactions in the UK. The tax is charged at different rates and has different thresholds for different types of property and different values of transaction.
The tax rate and payment threshold can vary according to whether the property is in residential or non-residential use, and whether it is a freehold or leasehold. SDLT relief is available for certain kinds of property or transaction.
This guide provides an overview of the SDLT rates and provides links to related guidance where necessary.
The table below applies for all freehold residential purchases and transfers and the premium paid for a new lease or the assignment of an existing lease. (If the property will be used for both residential and non-residential purposes the rates differ - please see the section 'SDLT for non-residential or mixed use property').
|Residential land or property SDLT rates and thresholds|
|Band of consideration (1)||Rate|
|£0 - £125,000||0%|
|£125,001 - £250,000||2%|
|£250,001 to £925,000||5%|
|£925,001 to £1,500,000||10%|
|'Non-natural persons' (2) (3)||15%|
(1) Rates are charged on the portion of consideration that falls within each band
(2) 'Non-natural person' includes companies, partnerships and collective investment schemes
(3) Rate applies to total consideration where consideration exceeds £500,000. Where consideration is £500,000 or less, then the normal banding above applies (0% on first £125,000, etc.)
(4) With effect from 1 April 2016, a higher rate of an additional 3% is applied where you own more than one residential property
When a new residential lease has a substantial annual rent, SDLT is payable on both of the following, which are calculated separately and then added together:
The NPV is based on the value of the total rent over the life of the lease and can be worked out using HMRC's online calculator (link below).
|Net present value of rent - residential||SDLT rate|
|£0 - £125,000||Zero|
|Over £125,000||1% of the value that exceeds £125,000|
If six or more properties form part of a single transaction the rules, rates and thresholds for non-residential properties apply. The amounts paid for all the properties in the transaction must be added together in order to establish the rate of tax payable.
Non-residential property includes:
A mixed use property is one that incorporates both residential and non-residential elements.
The table below applies for freehold and leasehold non-residential and mixed use purchases and transfers.
If the transaction involves the purchase of a new lease with a substantial annual rent, there may be additional SDLT charge to that shown below, based on the rent. See the later section and table for more detail.
|Non-residential land or property rates and thresholds|
|Purchase price/lease premium or transfer value (non-residential or mixed use)||SDLT rate|
|Up to £150,000 - annual rent is under £1,000||Zero|
|Up to £150,000 - annual rent is £1,000 or more||0.01|
|Over £150,000 to £250,000||0.01|
|Over £250,000 to £500,000||0.03|
Note that for the above purpose the annual rent is the highest annual rent known to be payable in any year of the lease, not the net present value used to determine any tax payable on the rent as described below.
When a new non-residential or mixed use lease has a substantial annual rent, SDLT is payable on both of the following which are calculated separately and then added together:
|SDLT on rent for new leasehold properties (non-residential or mixed use)|
|Net present value of rent - non-residential||SDLT rate|
|£0 - £150,000||Zero|
|Over £150,000||1% of the value that exceeds £150,000|
HMRC has developed online calculators which work out the amount of SDLT payable on residential, non-residential and mixed transactions in land and property.Go to HMRC's SDLT calculators