|Personal Allowance (PA)||£10,600||£10,000|
|Personal Allowance (born 6.4.38—5.4.48)||10,600||*10,500|
|Personal Allowance (born before 6.4.38)||*10,660||*10,660|
|Transferable Tax Allowance**||1,060||Nil|
|Blind Person’s Allowance||2,290||2,230|
|Allowed only at 10%|
|Married Couple’s Allowance (MCA)
(only available if born before 6.4.35)
|Age-related allowances income limit (AAIL)||27,700||27,000|
- PA is withdrawn at £1 for every £2 by which net income exceeds £100,000, such that PA becomes nil at income of £121,200 (2014/15: £120,000)
- *These allowances are reduced by £1 for every £2 by which income exceeds AAIL. Personal allowance is reduced before MCA, until equal to normal PA. MCA is reduced to minimum £3,220 (2014/15: £3,140).
- **Married couples/civil partners born after 5 April 1935 can transfer this amount of the PA between them as long as the recipient is not taxed at more than 20%.
|Basic rate band (BRB)||£31,785||£31,865|
|Higher rate band (HRB)||31,786-150,000||31,866-150,000|
|Additional rate||over 150,000||over 150,000|
- BRB and HRB are extended by personal pension contributions (up to permitted limit) and Gift Aid donations.
Rates differ for General/Savings/Dividend income
|2015/16 unchanged from 2014/15|
- If taxable general income is less than £5,000 (2014/15: £2,880), savings income is taxed at a ‘starting rate’ of nil (2014/15: 10%) until total taxable income exceeds that limit. This ‘starting rate band’ is part of the BRB.
High Income Child Benefit Charge (HICBC)
1% of child benefit for each £100 of adjusted net income between £50,000 and £60,000.
Remittance basis charge
For non-UK domiciled individuals who have been UK resident in at least
|7 of the preceding 9 tax years||£30,000||£30,000|
|12 of the preceding 14 tax years||60,000||50,000|
|17 of the preceding 20 tax years||90,000||N/A|
|Lifetime allowance (LA)||£1.25m||£1.25m|
|Annual allowance (AA)||40,000||40,000|
|LA charge if excess drawn as||cash 55%/income 25%|
|AA charge on excess inputs||20%-45%|
- Annual relievable pension inputs are the higher of earnings (capped at AA) or £3,600.
Annual investment limits
|Individual Savings Account||£15,240||£15,000|
|EIS – 30% relief||1,000,000||1,000,000|
|EIS eligible for CGT deferral relief||Unlimited||Unlimited|
|Seed EIS (SEIS) – 50% relief||100,000||100,000|
|SEIS – 50% exemption for reinvested gains||100,000||100,000|
|Venture Capital Trust (VCT) – 30% relief||200,000||200,000|
National Insurance Contributions
Class 1 (Employees)
|Main NIC rate||12.0%||13.8%|
|No NIC on first||£155pw||£156pw|
|Main rate* charged up to||£815pw||no limit|
|2% rate on earnings above||£815pw||N/A|
|Contracted out rebate on £112.01–£770pw||1.4%||3.4%|
|Employment allowance per business||N/A||£2,000|
- *Nil rate of employer NIC for employees under the age of 21 up to £815pw. Since 6.4.2012, only employment with a salary-related pension scheme can benefit from the lower contracted-out NIC rates.
- Employer contributions (at 13.8%) are also due on most taxable benefits (Class 1A) and on tax paid on an employee’s behalf under a PAYE settlement agreement (Class 1B).
Class 2 (Self-employed)
|Flat rate per week||£2.80|
|Small profits threshold||£5,965|
Class 3 (Voluntary)
|Class 3:Flat rate per week||£14.40|
|Class 3A:||Contributions vary with age|
Class 4 (Self-employed)
|On profits £8,061 – £42,385||9.0%|
|On profits over £42,385||2.0%|
Taxable benefit: Chargeable value multiplied by chargeable %.
Initial list price of car (including most accessories), reduced by any capital contribution (maximum £5,000) by employee when the car is first made available.
|Above 94g/km||Add 1% for every 5g/km|
|Above 210g/km (petrol)/ 195g/km (diesel)||37% maximum|
Chargeable value of £3,150 (2014/15 £3,090) if private use is more than home-to-work.
Employer provides fuel for private motoring in an employer-owned:
Car: CO2-based percentage from above table multiplied by £22,100 (2014/15 £21,700).
Van: £594 (2014/15 £581).
Employee contributions do not reduce taxable figure unless all private fuel is paid for by the employee (in which case there is no benefit charge).
Tax-free mileage allowances
|Employee’s own transport||per business mile|
|Cars first 10,000 miles||45p|
|Cars over 10,000 miles||25p|
Capital Gains Tax
|Individual (to basic rate limit)||18%||18%|
|Individual (above basic rate limit)||28%||28%|
|Entrepreneurs’ Relief (ER)*||10%||10%|
- *ER is available for lifetime gains of up to £10m. Qualifying disposals include a trading business or shares in a trading company (from a minimum 5% holding) of an officer/employee. Other conditions apply.
|Effective rate to||31.3.2016||31.3.2015|
|Profits up to £300,000||20%||20%|
|Profits £300,001 to £1,500,000||20%||21.25%|
|Profits above £1,500,000||20%||21%|
|Research and development relief||From 1.4.2015||From 1.4.2014|
|SME enhanced expenditure
|Large company enhanced expenditure
|Large company R&D Expenditure
Credit (RDEC) scheme**
- *Additional deduction for qualifying R&D
- **Taxable expenditure credit for qualifying R&D
- SMEs that make losses can surrender the deduction to HMRC in exchange for a payment of 14.5% (year to 31.3.15: 14.5%) of the loss.
- From 1 April 2016, RDEC will be the only scheme available for large companies.
Main capital allowances
|Plant and machinery||Limit|
|100% Annual Investment Allowance (AIA)|
|– expenditure 1.4.14* – 31.12.15||£500,000|
|– expenditure post 31.12.15||to be announced|
- * 6.4.14 for unincorporated businesses and LLPs
|– energy- and water-efficient equipment||100%|
|– writing down allowance: general pool (reducing balance)||18%|
|– writing down allowance: special rate pool (reducing balance)||8%|
- The special rate pool includes long life assets, integral plant in buildings, thermal insulation.
|Motor cars (expenditure post 31.3.15)|
|CO2 emissions (g/km)||Allowance|
|75 or less (new cars only) in first year||100%|
|Up to 130 (in general pool)||18%|
|Above 130 (in special rate pool)||8%|
Annual Tax on Enveloped Dwellings (ATED)
From 1 April 2013 the ATED applies to ‘high value’ residential properties owned via a corporate structure, unless the property is used for a qualifying purpose. From 1 April 2015 the tax applies to properties valued at £1m or more (previously £2m or more).
|Property value||Annual charge to|
|£1m – £2m||£7,000||N/A|
|£2m – £5m||23,350||£15,400|
|£5m – £10m||54,450||35,900|
|£10m – £20m||109,050||71,850|
Stamp Duty Land Tax (SDLT)
on the band*
|Up to £125,000||Nil|
|£125,001 – £250,000||2%|
|£250,001 – £925,000||5%|
|£925,001 – £1.5m||10%|
*A rate of 15% applies to the total purchase price where the property is valued above £500,000 and purchased by a ‘non-natural person’ (e.g. a company).
on total price
|Up to £150,000||Nil|
|£150,001 – £250,000||1%|
|£250,001 – £500,000||3%|
Land and Buildings Transaction Tax (LBTT)
From 1 April 2015, SDLT is replaced in Scotland by LBTT. Like SDLT, it is payable by the purchaser.
|Rate on band|
|Up to £145,000||Nil|
|£145,001 – £250,000||2%|
|£250,001 – £325,000||5%|
|£325,001 – £750,000||10%|
|Rate on band|
|Up to £150,000||Nil|
|£150,001 – £350,000||3%|
Value Added Tax
|Standard rate (1/6 of VAT-inclusive price)||20%|
|Registration level from 1.4.2015||£82,000 per annum|
|Deregistration level from 1.4.2015||80,000 per annum|
Flat rate scheme (FRS)
|Annual taxable turnover to enter scheme||Up to £150,000|
|Must leave scheme if annual taxable turnover||Exceeds £230,000|
- If using FRS, the VAT paid by the business is a fixed percentage (based on business category) of “FRS turnover” rather than the net of output tax over input tax. Input tax is usually not recoverable.
Inheritance Tax (IHT)
|Nil rate band*||£325,000||£325,000|
|Rate of tax above nil rate band**||40%||40%|
|Lifetime transfers to and from certain trusts||20%||20%|
- Unlimited exemption for transfers between spouses/civil partners, except if UK domiciled transferor and foreign domiciled transferee, where maximum exemption £325,000.
- 100% Business Property Relief (BPR) for all shareholdings in qualifying unquoted trading companies, qualifying unincorporated trading businesses and certain farmland/buildings.
- 100% Agricultural Property Relief (APR) available on agricultural value of qualifying farmland/buildings.
- BPR or APR available at 50% on certain property.
- * Up to 100% of the proportion of a deceased spouse’s/civil partner’s unused nil rate band may be claimed to increment the current nil rate band when the survivor dies.
- ** Rate reduced to 36% if at least 10% of the relevant estate is left to charity.
Reduced tax charge on gifts within 7 years before death
|Years before death||0-3||3-4||4-5||5-6||6-7|
|% of full death tax charge payable||100||80||60||40||20|
- Annual exemptions for lifetime gifts include £3,000 per donor and £250 per recipient.
Key dates and deadlines
|1st payment on account||31 January||2016||2015|
|2nd payment on account||31 July||2016||2015|
|Balancing payment||31 January||2017||2016|
|Other payment dates|
|Class 1A NIC||19 July||2016||2015|
|Class 1B NIC||19 October||2016||2015|
- Corporation tax is due 9 months and 1 day from the end of the accounting period, unless a ‘large’ company paying by quarterly instalments.
|2014/15 Filing deadlines|
|Issue P60s to employees||31 May 2015|
|P9D, P11D, P11D(b)||6 July 2015|
|Self assessment tax return (SATR) paper version||31 October 2015|
|Online SATR if outstanding tax
to be included in 2016/17 PAYE code
|30 December 2015|
|Online SATR||31 January 2015|
|National Minimum Wage
Rates per hour
|From 1.10.15||From 1.10.14|
|Aged 21 and over||£6.70||£6.50|
|Aged 18 – 20||5.30||5.13|
|Aged 16 – 17||3.87||3.79|
|First eligible child||£20.70||£20.50|
|Each subsequent child||13.70||13.55|
You are advised to consult us before acting on any information contained herein.