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