15/16 Tax Rates

 

Capital Gains Tax

 
Exemptions 15/16 14/15
Individuals, estates, etc £11,100 £11,000
Trusts generally £5,500 £5,500
Chattels proceeds (restricted to 5⁄3rds proceeds gain exceeding limit) £6,000 £6,000
 
Rates 15/16 14/15
Individuals – Up to basic rate limit 18% 18%
Individuals – Above basic rate limit 28% 28%
Trusts and estates 28% 28%
 
Entrepreneurs’ Relief* 15/16 14/15
Gains taxed at 10% 10%
Lifetime Limit £10,000,000 £10,000,000
 

Corporation Tax

 
Profits Effective rateto 31/3/16 Effective rateto 31/3/15
0–£300,000 20% 20%
£300,001 – £1,500,000 20% 21.25%
£1,500,001 and over 20% 21%
 

Dates for Tax Payments

 

Income Tax and Capital Gains Tax


31 January in Tax Year
Normally 50% of previous year’s income tax, less tax deducted at source
Following 31 July
Normally 50% of previous year’s income tax, less tax deducted at source
Following 31 January
Balance of income tax and all capital gains tax
 

Corporation Tax


Self Assessment 9 months after end of accounting period


Payable by installments where profits are £1.5m or over. Normally payable in 7th, 10th, 13th and 16th months after start of accounting period.


Growing companies: no installments where profits are £10m or less and the company was not a large company the previous year.


 

Inheritance Tax

 
15/16 14/15
Nil-rate band* £325,000 £325,000
Rate of tax on excess 40%† 40%†
Lifetime transfers to and from certain trusts 20% 20%
Exemption for non-UK domiciled spouse/civil partner £325,000 £325,000
 
100% relief: businesses, unlisted/AIM companies, certain farmland and farm buildings
50% relief: certain other business assets e.g. farmland let pre 1/9/95.

* Up to 100% of the unused portion of a deceased spouse’s/civil partner’s ni-rate band can be claimed on the survivor’s death.
† 36% where at least 10% of the net estate leC to charity for deaths aCer 5/4/12.
 

Income Tax Rates

 
Taxable income 15/16 14/15
Starting rate of 0% on savings income up to* £5,000 n/a
Starting rate of 10% on savings income up to* n/a £2,880
Basic rate of 20% on income up to £31,785 £31,865
Maximum tax at basic rate £6,357 £6,373
£31,786 – £31,866 –
Higher rate of 40% on income £150,000 £150,000
Tax on first £150,000 £53,643 £53,627
Additional rate on income over £150,000 45% 45%
Dividends for:
Basic rate taxpayers 10% 10%
Higher rate taxpayers 32.50% 32.50%
Additional rate taxpayers 37.50% 37.50%
Trusts:
Standard rate band generally £1,000 £1,000
Rate applicable to trusts: Dividends 37.50% 37.50%
Rate applicable to trusts: Other income 45% 45%
Child Benefit:
1% of benefit for every £100 of income for the tax year between £50,000 – £60,000 £50,000 – £60,000


* Not available if taxable non-savings income exceeds the starting rate

Main Personal Allowances and Reliefs 15/16 14/15
Personal (basic) £10,600 £10,000
Personal reduced if net income exceeds* £100,000 £100,000
Transferable tax allowance for married couples* £1,060 n/a
Personal (age) if born between 6/4/38 and 5/4/48 n/a £10,500
 Personal (age) if born before 6/4/38 £10,660 £10,660
Personal (age) reduced if net income exceeds* £27,700 £27,000
Married couple’s allowance *† – maximum amount £8,355 £8,165
Married couple’s allowance *† – minmium amount £3,220 £3,140
Blind person’s allowance £2,290 £2,230
Rent-a-room tax-free income £4,250 £4,250
Venture capital trust (VCT) at 30% £200,000 £200,000
Enterprise investment scheme (EIS) at 30% £1,000,000 £1,000,000
EIS eligible for capital gains tax deferral relief No limit
Seed enterprise investment scheme (SEIS) at 50% £100,000 £100,000
SEIS CGT reinvestment relief 50% 50%
 
 
*£1 reduction for every £2 of additional income over the income threshold.
† Relief at 10% if at least on of the couple was born before 6/4/35.
 

Non-domicile Remittance Basis Charge


Non-domicile Remittance Basis Charge after UK residence in at least: 15/16 14/15
7 of the last 9 tax years £30,000 £30,000
12 of the last 14 tax years £60,000 £50,000
17 of the last 20 tax years £90,000 n/a