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Tax and NIC rates

Income tax allowance

Allowances £ 2013/14 2014/15 2015/16
Personal Allowances*
those born after 5 April 1948 9,440 10,000 10,600
those born between 6 April 1938 and 5 April 1948 10,500 10,500 10,600
those born before 6 April 1938 10,660 10,660 10,660
Transferable tax allowance:
for married couples and civil partners n/a n/a 1,060
Married couple's allowance:
for those born before 6 April 1935, maximum amount 7,915 8,165 8,355
for those born before 6 April 1935, minimum amount 3,040 3,140 3,220
Blind person's allowance 2,160 2,230 2,290
Income limit for personal allowance 100,000 100,000 100,000
Income limit for personal allowance for those born before 6 April 1938 (6 April 1948 in 2013/14 and 2014/15)** 26,100 27,000 27,700

* From 2013/14 an individual’s personal allowance depends on their date of birth and their income in the tax year.

** The age-related personal allowance is reduced where the taxpayer's income in the tax year is above the income limit, by £1 for every £2 above the limit until the level of the basic personal allowance is reached. For 2015/16 a taxpayer born before 6 April 1938, who has taxable income between £27,820 and £100,000, will be entitled to the basic personal allowance of £10,600.

Income tax – taxable bands

2013/14 Band 2014/15 Band 2015/16 Band
Starting rate for savings
10%
Up to £2,790 Starting rate for savings
10%
Up to £2,880 Starting rate for savings
0%
Up to £5,000
Basic rate
20%
Up to £32,010 Basic rate
20%
Up to £31,865 Basic rate
20%
Up to £31,785
Higher rate
40%
£32,011 to £150,000 Higher rate
40%
£31,866 to £150,000 Higher rate
40%
£31,786 to £150,000
Additional rate
45%
Over £150,000 Additional rate
45%
Over £150,000 Additional rate
45%
Over £150,000


Dividends

2013/14 Tax rate 2014/15 Tax rate 2015/16 Tax rate
Up to £32,010 10% Up to £31,865 10% Up to £31,785 10%
£32,011 – £150,000 32.5% £31,866 – £150,000 32.5% £31,786 – £150,000 32.5%
Over £150,000 37.5% Over £150,000 37.5% Over £150,000 37.5%


National Insurance contributions (NIC)

Class 1 primary NIC (employee – EE)

£ per week (unless stated) 2013/14 2014/15 2015/16
Lower earnings limit 109 111 112
Primary theshold 149 153 155
Upper accrual point 770 770 770
Upper earnings limit 797 805 815
EE primary Class 1 rate between primary threshold and upper earnings limit 12% 12% 12%
EE primary Class 1 rate above upper earnings limit 2% 2% 2%
EE contracted-out rebate – salary 1.4% 1.4% 1.4%
Married women's reduced rate between primary threshold and upper earnings limit 5.85% 5.85% 5.85%
Married women's rate above upper earnings limit 2% 2% 2%


Class 1 secondary NIC (employers – ER)

£ per week (unless stated) 2013/14 2014/15 2015/2016
Secondary threshold 148 153 156
ER secondary Class 1 rate above secondary threshold 13.8% 13.8% 13.8%
ER contracted-our rebate – salary related schemes 3.4% 3.4% 3.4%


Class 2 NIC (self-employed)

£ per week (unless stated) 2013/14 2014/15 2015/16
Class 2 rate 2.70 2.75 2.80
Class 2 small earnings exception/small profits (per year) 5,725 5,885 5,965
Special Class 2 rate for share fishermen 3.35 3.40 3.45
Special Class 2 rate for volunteer development workers 5.45 5.55 5.60


Class 3 NIC (voluntary)

£ per week 2013/14 2014/15 2015/16
Class 3 rate 13.55 13.90 14.10


Class 4 NIC (self-employed)

£ per year 2013/14 2014/15 2015/16
Class 4 lower profits limit 7,755 7,956 8,060
Class 4 upper profits limit 41,450 41,865 42,385
Class 4 rate between lower profits limit and upper profits limit 9% 9% 9%
Class 4 rate above upper profits limit 2% 2% 2%


Capital gains tax

2013/14 2014/15 2015/16
Standard rate 18% 18% 18%
Rate for higher and additional taxpayers 28% 28% 285
Annual exemption 10,900 11,000 £11,100
Entrepreneurs' Relief rate 10% 10% 10%
Entrepreneurs' Relief lifetime limit 10M 10M 10M


Inheritance tax

2013/14 2014/15 2015/16
Chargeable lifetime transfers (after exemptions):
Up to £325,000 0% 0% 0%
Over £325,000 20% 20% 20%
On death (net estate):
Up to £325,000 0% 0% 0%
Over £325,000 40% 40% 40%

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