Income Tax

Tax Free Personal Allowance  – the amount of gross income you can earn before you are liable to paying income tax

Personal Allowance (Born after 5 April 1948) £10,600
Personal Allowance (Born between 6 April 1938 and 5 April 1948) £10,600
Personal Allowance (Born before 6 April 1938) £10,600

Personal allowance withdrawn by £1 for every £2 of income over £100,000

Married Couples Allowance

Available to a qualifying individual born before 6th April 1935 aged 75 or over 10% of the amount below is allowed to be deducted from the tax bill of a qualifying individual personal allowance is reduced by £1 for every £2 over the income limits for tapering - up to the minimum married couple's allowance level

Married Couples Allowance £8,355
Minimum Married Couples Allowance £3,220

Transferable Tax Allowance

Available to a qualifying spouses/civil partners born after 5th April 1935 equivalent to 10% of the personal allowance spouses or civil partners not liable to taxes in the higher rate or above can transfer up to the amount available to their spouse or civil partner. the recipient receives a tax bill deduction of 20 percent of the amount transferred

Transferable Tax Allowance £1,060

Blind Person's Allowance

Additional Personal Allowance £2,290

Income Tax Bands and Percentages

*0% starting rate is for savings income only - if your non-savings income is above the starting band level, the 0% rate will NOT apply and the basic rate percentage will be used instead.

Band Limits Percentage
Starting Rate (Savings only *) £0 - £5,000 0%*
Basic Rate £0 - £31,785 20%
Higher Rate £31,786 - £150,000 40%
Additional/Top Rate Over £150,000 45%

Dividend Tax Bands and Percentages

Band Limits Percentage
Ordinary Rate £0 - £31,785 10%
Upper Rate £31,786 - £150,000 32.5%
Additional/Top Rate Over £150,000 37.5%

National Insurance Contributions

National Insurance Rates and Allowances - Find your classification by looking up your NIC letter on your payslip/return

Shared Banding For All NICs

Lower Earnings Limit (Weekly) £112
Upper Accrual Point (Weekly) £770
Upper Earnings Limit (Weekly) £815
Primary Threshold (Weekly) £155
Secondary Threshold (Weekly) £156

Rates for Class 1 NICs

Between Primary Threshold and Upper Earnings Limit 12%
Above Upper Earnings Limit 2%
Employers' Rate Above Secondary Threshold 13.8%
Class 1A Rate On Employer Provided Benefits 13.8%
Employees' Contracted Out Rebate 1.4%
Employers' Contracted Out Rebate 3.4%
Married Women's Reduced Rate Between Primary and Upper Earnings 5.85%
Married Women's Reduced Rate Above Upper Earnings 2%

Self Employed Class 2 and Class 4 NICs

Class 4 Lower Profits Limit (Annual) £8,060
Class 4 Upper Profits Limit (Annual) £42,835
Class 4 Rate Between Lower and Upper Profits 9%
Class 4 Rate Above Upper Profits 2%
Class 2 Earnings Exception Limit £5,965
Class 2 Weekly Amount £2.80
Class 2 Weekly Amount (Share Fisherman) £3.45
Class 2 Weekly Amount (Volunteer Development Workers) £5.60

Voluntary Class 3 NICs

Weekly rate £14.10

Corporation Tax Rates and Limits

From 2015/2016 the corporation tax rate is unified at 20% for all company sizes, eliminating the marginal relief.

Small Profits Rate n/a
Main Rate 20%
Small Profits Limit n/a
Marginal Relief Lower Limit n/a
Marginal Relief Upper Limit n/a
Marginal Relief Fraction n/a

Capital Gains Tax Rates and Annual Exempt Amounts

Individuals, Personal Reps and Trustees for Disable People £11,100
Other Trustees £5,550

CGT Tax Rates

Individuals - Basic Rate Taxpayer 18%
Individuals - Higher Rate Taxpayer 28%
Personal Representative of a Deceased Individual 28%
Gains Qualifying for Entrepreneurs' Relief 10%

Inheritance Tax

Nil rate band* £325,000
Rate of tax on excess 40%
Rate of tax on chargeable lifetime transfers 20%
Agricultural/business relief 100%
Certain other business assets relief 50%

*Unused nil rate band percentage transferable between spouses

Exempt Gifts

Small gifts per done £250
Annual per donor £3,000
Parental gift on marriage £5,000
Grandparent gift on marriage £2,500
Other marriage gifts £1,000

Pensions

Lifetime Allowance £1,250,000
Annual Allowance £40,000