2015 Tax Cards
Income Tax
Main allowances
| 2015/16 | 2014/15 | |
|---|---|---|
| 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) |
*8,355 | *8,165 |
| 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PA is withdrawn at £1 for every £2 by which net income exceeds £100,000, such that PA becomes nil at income of £121,200 (2014/15: £120,000)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%.
Rate bands
| 2015/16 | 2014/15 | |
|---|---|---|
| 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.
Tax rates
Rates differ for General/Savings/Dividend income
| 2015/16 unchanged from 2014/15 | |||
|---|---|---|---|
| G | S | D | |
| Basic rate | 20% | 20% | 10% |
| Higher rate | 40% | 40% | 32.5% |
| Additional rate | 45% | 45% | 37.5% |
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
| 2015/16 | 2014/15 | |
|---|---|---|
| 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 |
Pensions
Registered Pensions
| 2015/16 | 2014/15 | |
|---|---|---|
| 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.
State pension
| 2015/16 | 2014/15 | |
|---|---|---|
| Single person | £115.95 | £113.10 |
| Married couple | 185.45 | 180.90 |
Annual investment limits
| 2015/16 | 2014/15 | |
|---|---|---|
| Individual Savings Account | £15,240 | £15,000 |
| Junior ISA | 4,080 | 4,000 |
| 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 2015/16
Class 1 (Employees)
| Employee | Employer | |
|---|---|---|
| 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% |
Vehicle Benefits
Cars
Taxable benefit: Chargeable value multiplied by chargeable %.
Chargeable value:
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.
Chargeable percentage:
| CO2 emissions | Petrol | Diesel |
|---|---|---|
| 0-50g/km | 5% | 8% |
| 51-75g/km | 9% | 12% |
| 76-94/km | 13% | 16% |
| Above 94g/km | Add 1% for every 5g/km | |
| Above 210g/km (petrol)/ 195g/km (diesel) | 37% maximum | |
Vans
Chargeable value of £3,150 (2014/15 £3,090) if private use is more than home-to-work.
Fuel
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 |
| Business passengers | 5p |
| Motorcycles | 24p |
| Bicycles | 20p |
Capital Gains Tax
| 2015/16 | 2014/15 | |
|---|---|---|
| Annual exemption | ||
| Individuals, estates | £11,100 | £11,000 |
| Most trusts | 5,550 | 5,500 |
| Tax rate | ||
| Individual (to basic rate limit) | 18% | 18% |
| Individual (above basic rate limit) | 28% | 28% |
| Entrepreneurs’ Relief (ER)* | 10% | 10% |
| Trusts, estates | 28% | 28% |
*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.
Corporation Tax
| 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 deduction scheme* |
130% | 125% |
| Large company enhanced expenditure deduction scheme* |
30% | 30% |
| Large company R&D Expenditure Credit (RDEC) scheme** |
11% | 10% |
*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
| Other rates | |
|---|---|
| – 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% |
Property Taxes
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 | |
|---|---|---|
| 31.3.2016 | 31.3.2015 | |
| £1m – £2m | £7,000 | N/A |
| £2m – £5m | 23,350 | £15,400 |
| £5m – £10m | 54,450 | 35,900 |
| £10m – £20m | 109,050 | 71,850 |
| £20m + | 218,200 | 143,750 |
Stamp Duty Land Tax (SDLT)
| Residential property: Purchase price |
SDLT rate on the band* |
|---|---|
| Up to £125,000 | Nil |
| £125,001 – £250,000 | 2% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1.5m | 10% |
| £1.5m + | 12% |
*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).
| Commercial property Purchase price |
SDLT rate on total price |
|---|---|
| Up to £150,000 | Nil |
| £150,001 – £250,000 | 1% |
| £250,001 – £500,000 | 3% |
| £500,000 + | 4% |
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.
| Residential property Purchase price |
Rate on band |
|---|---|
| Up to £145,000 | Nil |
| £145,001 – £250,000 | 2% |
| £250,001 – £325,000 | 5% |
| £325,001 – £750,000 | 10% |
| £750,000 + | 12% |
| Commercial property Purchase price |
Rate on band |
|---|---|
| Up to £150,000 | Nil |
| £150,001 – £350,000 | 3% |
| £350,000 + | 4.5% |
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
| 2015/16 | 2014/15 | |
|---|---|---|
| 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
| Payment dates | |||
|---|---|---|---|
| Self assessment | 2015/16 | 2014/15 | |
| 1st payment on account | 31 January | 2016 | 2015 |
| 2nd payment on account | 31 July | 2016 | 2015 |
| Balancing payment | 31 January | 2017 | 2016 |
| CGT | 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 |
Useful rates
| 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 |
| Apprentices | 3.30 | 2.73 |
| Child Benefit | 2015/16 | 2014/15 |
|---|---|---|
| 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.