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