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|Tax bands and rates||2015/16||2014/15|
|Basic rate band||£31,785||£31,865|
|Basic tax rate||20%||20%|
|Dividend ordinary tax rate||10%||10%|
|Savings rate band||£5,000*||£2,880|
|Higher rate band||£31,786 - £150,000||£31,866 - £150,000|
|Higher tax rate||40%||40%|
|Dividend higher tax rate||32.5%||32.5%|
|Additional rate band over||£150,000||£150,000|
|Additional tax rate||45%||45%|
|Dividend additional tax rate||37.5%||37.5%|
|Allowances that reduce taxable income|
|Personal allowances||Those born after 5 April 1948||£10,600||£9,440|
|Those born after 5 April 1938 and before 6 April 1948||£10,600||£10,500|
|Those born before 6 April 1938||£10,660||£10,660|
|Married couples/civil partners||Transferable allowance||£1,060||N/A|
|Blind person's allowance||£2,290||£2,230|
Age related allowances are reduced by £1 for each £2 of income above £27,700 (2014/15 £27,000), until the minimum of £10,600 (2014/15 £10,000) is reached.
The minimum personal allowance is reduced by £1 for each £2 of income from £100,000 (2014/15 - £100,000) to £121,200 (2014/15 - £120,000).
|Allowances that reduce tax|
|Married couple's allowance (MCA)||Maximum amount||£8,355||£8,165|
|Tax reduction at 10%||£816.50||£791.50|
|Non domicile charge|
|Applies after UK residence in 7 or
more of the previous 9 tax years
|Applies after UK residence in at least 12 of the previous 14 years||£60,000||£50,000|
|Applies after UK residence in at least 17 of the last 20 years||£90,000||N/A|
|Investment tax shelters|
Enterprise investment scheme (EIS) up to
|Maximum amount for EIS carry back||£50,000||£50,000|
|Income tax relief rate||30%||30%|
|Seed enterprise investment scheme (SEIS)||£100,000||£100,000|
|Income tax relief||50%||50%|
|Venture capital trust (VCT)||£200,000||£200,000|
|VCT tax relief rate||30%||30%|
|Golden handshake maximum tax free||£30,000||£30,000|
|Rent a room - exempt on gross annual rent up to||£4,250||£4,250|
|Construction industry scheme - deduction rate|
|Standard rate - registered||20%||20%|
|Higher rate - not registered||30%||30%|
*Savings income falling into the first £5,000 may be taxed at 0% for certain low income earners.
2016 and beyond
The basic rate limit is to be increased to £31,900 for 2016/17 and to £32,300 for 2017/18. The higher rate threshold will increase to £42,700 in 2016/17 and to £43,300 in 2017/18.
Did you know?
The Treasury is expecting to raise £170.5 billion from income tax (2014/15 - £162.6 billion).