Income Tax Rates and Allowances
Income Tax Rates and Allowances (Table A)
|Personal Allowance (PA)||£10,600||£10,000|
|Personal Allowance (born 6.4.38-5.4.48)||10,600||*10,500|
|Personal Allowance (born before 6.4.38)||*10,660||*10,660|
|Transferable Tax Allowance**||1,060||Nil|
|Blind Person's Allowance||2,290||2,230|
|Allowed only at 10%|
|Married Couple's Allowance (MCA)
only available if born before 6.4.35
|Age-related allowances income limit (AAIL)||27,700||27,000|
PA is withdrawn at £1 for every £2 by which net income exceeds £100,000, such that PA becomes nil at income of £121,200 (2014/15: £120,000)
*These allowances are reduced by £1 for every £2 by which income exceeds AAIL. Personal allowance is reduced before MCA, until equal to normal PA. MCA is reduced to minimum £3,220 (2014/15: £3,140).
**Married couples/civil partners born after 5 April 1935 can transfer this amount of the PA between them as long as the recipient is not taxed at more than 20%.
|Basic rate band (BRB)||£31,785||£31,865|
|Higher rate band||31,786-150,000||31,866-150,000|
|Additional rate||over 150,000||over 150,000|
|Rates differ for General, Savings and Dividend income within each band:|
If taxable general income is less than £5,000 (2014/15: £2,880), savings income is taxed at a ‘starting rate’ of nil (2014/15: 10%) until total taxable income exceeds that limit. This ‘starting rate band’ is part of the BRB.
High Income Child Benefit Charge (HICBC)
1% of child benefit for each £100 of adjusted net income between £50,000 and £60,000.
|Remittance basis charge||2015/16||2014/15|
|For non-UK domiciled individuals who have been
UK resident in at least
|7 of the preceding 9 tax years||£30,000||£30,000|
|12 of the preceding 14 tax years||60,000||50,000|
|17 of the preceding 20 tax years||90,000||N/A|
Registered Pensions (Table B)
|Lifetime allowance (LA)||£1.25m||£1.25m|
|Annual allowance (AA)||40,000||40,000|
|LA charge if excess drawn as||cash 55%/income 25%|
|AA charge on excess inputs||20%-45%|
Annual relievable pension inputs are the higher of earnings (capped at AA) or £3,600.
Car and Fuel Benefits (Table C)
Taxable benefit is chargeable value multiplied by chargeable percentage.
Chargeable value:Initial list price of car (including most accessories), reduced by any capital contribution (maximum £5,000) by employee when the car is first made available.
|CO2 emissions (g/km)||Petrol||Diesel|
|Above 94||Add 1% for every 5g/km|
|Above 210 (petrol)/ 195 (diesel)||37% maximum|
Where employer provides fuel for private motoring in an employer-owned car, CO2-based percentage from above table multiplied by £22,100 (2014/15 £21,700).
Employee contributions for fuel do not reduce taxable figure unless all private fuel is paid for by the employee (in which case there is no benefit charge).