19th March 2015
| 2014/15 | 2015/16 | |
| £ | £ | |
| Income tax rates – (non-dividend income) | ||
| 10% lower rate tax – savings rate only | Up to 2,880 | Up to 5,000 |
| 20% basic rate tax | Up to 31,865 | Up to 31,785 |
| 40% higher rate tax | 31,866 – 150,000 | 31,786 – 150,000 |
| 45% additional rate tax | Above £150,000 | Above £150,000 |
| From 2008-09 10% starting rate applies to savings income only and will not apply if non-savings income exceeds threshold. | ||
| Income tax rates – (dividend income) | ||
| 10% rate | Up to 31,865 | Up to 31,785 |
| 32.5% higher dividend rate | 31,866 – 150,000 | 31,786 – 150,000 |
| 37.5% additional dividend rate | Above £150,000 | Above £150,000 |
| Personal allowances | ||
| Personal allowance those born after 5 April 1948 | 10,000 | 10,600 |
| Personal allowance those born between 6 April 1938 and 5 April 1948 | 10,500 | 10,600 |
| Personal allowance those born before 6 April 1938 | 10,660 | 10,660 |
| Married couple’s allowance those born before 6 April 1935 | 8,165 | 8,355 |
| Married couple’s allowance – minimum amount | 3,140 | 3,220 |
| Income limit for under 65 personal allowance | 100,000 | 100,000 |
| Income limit for personal allowances (born before 6 April 1948) | 27,000 | 27,700 |
| Blind person’s allowance | 2,230 | 2,290 |
| Rent-a-room relief | 4,250 | 4,250 |
| Transferable tax allowance for married couples and civil partners | N/A | 1,060 |
| Abatement of personal allowance will apply of £1 for every £2 of taxable income in excess of income limit. | ||
National insurance |
||
| Lower earnings limit, primary Class 1 (per week) | 111 | 112 |
| Upper earnings limit, primary Class 1 (per week) | 805 | 815 |
| Upper accrual point | 770 | 770 |
| Primary threshold (per week) | 153 | 155 |
| Secondary threshold (per week) | 153 | 156 |
| Employment allowance (per year per employer) | 2,000 | 2,000 |
| Employee’s primary Class 1 rate between primary threshold and upper earnings limit | 12% | 12% |
| Employee’s primary Class 1 rate above upper earnings limit | 2.00% | 2.00% |
| Employee’s contracted-out rebate – salary-related scheme | 1.40% | 1.40% |
| Married woman’s reduced rate between primary threshold and upper earnings limit | 5.85% | 5.85% |
| Married woman’s rate above upper earnings limit | 2.00% | 2.00% |
| Employer’s secondary Class 1 rate above secondary threshold | 13.80% | 13.80% |
| Employer’s secondary Class 1 rate above secondary threshold (contracted out) | 10.40% | 10.40% |
| Employer’s contracted-out rebate, salary-related schemes (between LEL and UAP) | 3.40% | 3.40% |
| Class 2 rate (per week) | 2.75 | 2.80 |
| Class 2 small earning exception (per year) | 5,885 | 5,965 |
| Special Class 2 rate for share fishermen (per week) | 3.40 | 3.45 |
| Special Class 2 rate for volunteer development workers | 5.55 | 5.60 |
| Class 3 rate (per week) | 13.90 | 14.10 |
| Class 4 lower profits limit | 7,956 | 8,060 |
| Class 4 upper profits limit | 41,865 | 42,385 |
| Class 4 rate between lower profits limit and upper profits limit | 9.00% | 9.00% |
| Class 4 rate above upper profits limit | 2.00% | 2.00% |
| From 6 April 2015 there will be no employer’s liability to NIC for employees under 21. | ||
| Pensions | ||
| Annual allowance | 40,000 | 40,000 |
| Lifetime allowance | 1,250,000 | 1,250,000 |
| Relief’s and incentives | ||
| Enterprise Investment Scheme (EIS) – maximum | 1,000,000 | 1,000,000 |
| Venture Capital Trust (VCT) – maximum | 200,000 | 200,000 |
| Enterprise Management Incentive Scheme (EMI) – employee limit | 240,000 | 240,000 |
| Seed Enterprise Investment Scheme (SEIS) | 100,000 | 100,000 |
| Income tax relief on EIS schemes | 30% | 30% |
| Income tax relief on VCT schemes | 30% | 30% |
| Income tax relief on SEIS schemes | 50% | 50% |
| Individual Savings Account (ISA): | ||||
| New ISA (NISA) limits | ||||
| New ISA (NISA) annual limit | 15,000 | 15,240 | ||
| New Junior ISA investment annual limit | 4,000 | 4,080 | ||
| New child value of Child Trust Fund annual limit | 4,000 | 4,080 | ||
| Capital gains tax | ||||
| Rate | – basic rate tax payer | 18% | 18% | |
| – higher rate tax payer | 28% | 28% | ||
| Individuals | 11,000 | 11,100 | ||
| Certain trusts for disabled persons | 11,000 | 11,100 | ||
| Other trusts | 5,500 | 5,550 | ||
| Entrepreneurs Relief lifetime limit | 10,000,000 | 10,000,000 | ||
| Entrepreneurs Rate | 10% | 10% | ||
| Chattels exemption (5/3 taxable on excess) | 6,000 | 6,000 | ||
| Working and Child tax credits rates | ||||
| Working tax credit | ||||
| Basic element | 1,940 | 1,960 | ||
| Couple and lone parent element | 1,990 | 2,010 | ||
| 30 hour element | 800 | 810 | ||
| Disabled worker element | 2,935 | 2,970 | ||
| Severe disability element | 1,255 | 1,275 | ||
| Childcare element of the Working tax credit | ||||
| Maximum eligible cost for one child (per week) | 175 | 175 | ||
| Maximum eligible cost for two or more children (per week) | 300 | 300 | ||
| Percentage of eligible costs covered | 70.00% | 70.00% | ||
| Child tax credit | ||||
| Family element | 545 | 545 | ||
| Child element | 2,750 | 2,780 | ||
| Disabled child element | 3,100 | 3,140 | ||
| Severely disabled child element | 1,255 | 1,275 | ||
| Income threshold and withdrawal rates | ||||
| First income threshold | 6,420 | 6,420 | ||
| First withdrawal rate | 41.00% | 41.00% | ||
| First threshold for those entitled to Child tax credit only | 16,010 | 16,105 | ||
| Income disregard | 5,000 | 5,000 | ||
| Income fall disregard | 2,500 | 2,500 | ||
| Child benefit/Guardian’s allowance rates | ||||
| Eldest/only child | 20.50 | 20.70 | ||
| Other children | 13.55 | 13.70 | ||
| Guardian’s allowance | 16.35 | 16.55 | ||
|
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| Inheritance tax | ||||||
| Single persons nil rate band | 1 – 325,000 | 1 – 325,000 | ||||
| Single persons 40% band | over 325,000 | over 325,000 | ||||
| Married couples or civil partnerships allowance nil rate band | 650,000 | 650,000 | ||||
| Gifts to charities | Exempt | Exempt | ||||
| Small gifts to same person | 250 | 250 | ||||
| Marriage/civil partnership gifts by: | ||||||
| Parent | 5,000 | 5,000 | ||||
| Grandparent/party | 2,500 | 2,500 | ||||
| Other person | 1,000 | 1,000 | ||||
| From 6 April 2012 a reduced rate of IHT of 36% will be introduced where 10% or more of the net estate is left to charity. | ||||||
| Business Property Relief | ||||||
| Business or interest in a business and transfer if unquoted shareholdings | 100% | 100% | ||||
| Transfers out of a controlling shareholding in quoted companies, land and buildings, plant and machinery used in a qualifying company or partnership | 50% | 50% | ||||
| Taxation of trusts | ||||||
| Trust tax rate excluding dividend income | 45.00% | 45.00% | ||||
| Dividend trust rate | 37.50% | 37.50% | ||||
| Basic rate trust income tax band | 1,000 | 1,000 | ||||
| Corporation tax | ||||||
| £1-£300,000 | 20% | 20% | ||||
| £300,001-£1,500,000 | 21.25% | 20% | ||||
| Over £1,500,000 | 21% | 20% | ||||
| Capital Allowances | ||||||
| Main writing down allowance | 18% | 18% | ||||
| Special rate writing down allowance | 8% | 8% | ||||
| First year allowances for certain energy-saving/water efficient products | 100% | 100% | ||||
| Annual investment allowance | 100% | 100% | ||||
| AIA from 1 April 2014 to 31 December 2015 maximum £500,000pa. From 1 January 2016 £25,000pa. (subject to change). | ||||||
| Research and Development Tax Credit Rates | ||||||
| SME Rate | 225% | 230% | ||||
| Large company rate | 130% | 130% | ||||
| Large companies expenditure credit scheme | 10% | 11% | ||||
| Patent Box | ||||||
| Patent box | 10% | 10% | ||||
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| VAT | ||||||
| Standard rate | 20% | 20% | ||||
| Registration threshold | 81,000 | 82,000 | ||||
| Deregistration threshold | 79,000 | 80,000 | ||||
| Cash accounting scheme | 1,350,000 | 1,350,000 | ||||
| Annual accounting scheme | 1,350,000 | 1,350,000 | ||||
| Flat rate scheme | 150,000 | 150,000 | ||||
| Flat rate scheme exit threshold | 230,000 | 230,000 | ||||
| Stamp duty land tax (SDLT) Property purchases in England, Wales and Northern Ireland | ||
| Band | Rate incremental | |
| 0% residential | £1-£125,000 | |
| 2% residential | £125,001-£250,000 | |
| 5% residential | £250,001-£925,000 | |
| 10% residential | £925,001-£1.5m | |
| 12% residential | Above £1.5 million | |
| 0% non-residential and mixed-use properties | £1 to £150,000 | |
| 1% non-residential and mixed-use properties | £150,001-250,000 | |
| 3% non-residential and mixed-use properties | £250,001 -£500,000 | |
| 4% non-residential and mixed-use properties | Above £500,000 | |
| Stamp duty land tax (SDLT) Property purchases in Scotland | ||
| Band | Rate incremental | |
| 0% residential | £1-£135,000 | |
| 2% residential | £135,001-£250,000 | |
| 10% residential | £250,001-£1m | |
| 12% residential | Above £1m | |
| 0% non-residential and mixed-use properties | £1-£150,000 | |
| 3% non-residential and mixed-use properties | £150,00-£350,000 | |
| 4.5% non-residential and mixed-use properties | Above £350,000 | |
| Leases 1% on present value of rents above £150,000 | ||
| From 20 March 2014 residential property purchased by non-natural persons for consideration exceeding £500,000 will be subject to SDLT at 15% | ||
| Annual Tax on Enveloped Dwellings (ATED) | ||
| More than £1m but not more than £2m | n/a | £7,000 |
| More than £2m but not more than £5m | £15,400 | £23,350 |
| More than £5m but not more than £10m | £35,900 | £54,450 |
| More than £10m but not more than £20m | £71,850 | £109,050 |
| More than £20m | £143,750 | £218,200 |
For further help and advice
Tel: 01332 813380 – Email: advice@rdgaccounting.com
ACCA LEGAL NOTICE
This is a basic guide prepared by ACCA UK‘s Technical Advisory Service for members and their clients. It should not be used as a definitive guide, since individual circumstances may vary. Specific advice should be obtained, where necessary.
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