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 |
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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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