RESOURCES

Tax Rates & Allowances 2014/15

Income tax
Personal allowances and reliefs

2016/17 2015/16 2014/15 2013/14 2012/13 2011/12 2010/11 2009/10
Personal allowance £ £ £ £ £ £ £ £
Aged under 65* 11,000 10,600 10,000 9,440 8,105 7,475 6,475 6,475
Born between 6 April 1938 and 5 April 1948 11,000 10,600 10,500 10,500 - - - -
Aged 65-74 - - - - 10,500 9,940 9,490 9,490
Aged 75 & over - - - - 10,660 10,090 9,640 9,640
Born before 6 April 1938 11,000 10,660 10,660 10,660 - - - -
Blind person's allowance 2,290 2,290 2,230 2,160 2,100 1,980 1,890 1,890
Transferable personal allowance (to spouse) 1,100 1,060 - - - - - -
Married couples allowance (MCA) - - - 7,915 7.705 7,295 6,965 6,965
Max 8,355 3,220 8,165          
Min 3,220 3,220 3,140          
Born before 6 April 1935 8,355 8,355 8,165 7,915 7,705 7,295 6,965 6,965
Age allowance limit 27,700 27,700 27,000 26,100 25,400 24,000 22,900 22,900
Rent a room relief 7,500 4,250 4,250 4,250 4,250 4,250 4,250 4,250
*Personal allowance restriction from 2010/11 on

The personal allowance is restricted by £1 for every £2 of an individual's adjusted net income above £100,000.

** Tranferable allowance: a spouse or civil partner who is not liable to income tax above the basic rate may transfer £1,100 (2015/16 £1,060) of their unused personal allowance to their spouse/civil partner, provided that the recipient of the transfer is not liable to income tax above the basic rate. Taxpayers have 4 years in which to make the election.

Income tax rates
Rate % 2016/17 2015/16 2014/15 2013/14 2012/13 2011/12 2010/11 2009/10 2008/09
Basic* 20% £0 -£32,000 £0 - £31,785 £0 to £31,865 £0 to £32,010 £0 to £34,370 £0 to £35,000 £0 to £37,400 £0 to £37,400 £0 to £34,600
Higher* 40% £32,000 to £150,000 £31,786 - £150,000 £31,866 to £150,000 £32,011 to £150,000 £34,370 to £150,000 £35,001 to £150,000 £37,401 to £150,000 £37,401 and Above £34,601 and Above
Top 45% £150,000 + £150,000 + £150,000 + £150,000 + - - - N/A N/A
Top 50% - - - - £150,000 + £150,000 + £150,000 + N/A N/A
*Starting rate band:

a starting rate applies to savings income up to:

  1. £5,000 2016/17 - rate 0%
  2. £5,000 2015/16 ""
  3. £2,880 2014/15 - rate 10%
  4. £2,790 2013/14 ""
  5. £2,710 2012/13 ""
  6. £2,560 2011/12 ""
  7. £2,440 2010/11 ""
  8. £2,320 2008/09 to 2009/10

This band is not available if taxable non-savings income also exceeds this band. See Tax on interest for worked examples.
Note restriction on personal allowances when income is in excess of £100,000 from 2010/11 on.

Personal Savings Allowance
  1. From 2016/17 basic rate taxpayers will not have to pay tax on the first £1,000 of their savings income.
  2. From 2016/17 higher rate taxpayers will not have to pay tax on the first £500 of their savings income.
  3. There is no personal savings allowance for upper rate taxpayers.

From April 2016 banks and building societies will no longer deduct basic rate tax from interest.

Child benefit claimants

Commencing on 7 January 2013 the High Income Child Benefit Tax Charge provisions will claw back Child Benefit payments when a claimant or their partner's income exceeds £50,000.

Dividend tax from 2016/17
  1. The dividend tax credit is abolished
  2. The first £5,000 of dividend received is tax free
  3. Basic rate dividends taxed at 7.5%
  4. Higher rate dividends taxed at 32.5%
  5. Upper rate dividends taxed at 38.1%
Tax rate & effective tax rate on dividends up to 2015/16
Rate 2013/14 to 2015/16 2012/13 2011/12 2010/11 2009/10 2008/09
Top tax rate 45% 50% 50% 50% 40% 40%
Dividend rate 37.5% 42.50% 42.50% 42.5% 32.5% 32.5%
Effective rate* 30.55% 36.11% 36.11% 36.11% 25% 25%
Higher tax rate 40% 40% 40% 40% - -
Dividend rate 32.5% 32.5% 32.5% 32.5% - -
Effective rate* 25% 25% 25% 25% - -

* For example: if an individual who is a top rate tax payer receives a dividend of £20,000 in 2013/14 (dividends are paid net of 10% tax), he will face a tax liability of £6,111 on the net dividend.

Special rates for trustees income
Rate 2013/14 to 2015/16 2012/13
Standard rate on first £1,000 of income which would otherwise be taxed at the special rate for trustees Up to 20% depending on type of income Up to 20% depending on type of income
Trust rate 45% 50%
Dividend trust rate 37.5% 42.5%
Pensions - higher rate restrictions
Contribution limits From 2014/15 on 2011/12 to 2013/14 To 2010/11
Annual allowance £40,000 £50,000 £215,000
Lifetime allowance £1.25 million £1.5 million £1.8 million
Lifetime allowance £1.25 million £1.5 million £1.8 million

National Insurance rates

(employers & employees) not contracted out

Rates 2016-17

Employee rate Band Weekly earnings Employer rate Weekly earnings
0% LEL Up to £112 - -
0% - £112 to £155 0% £1 to £156
12% - £155 to £827 13.8% Above £156
2% UEL Over £827 - -

Rates 2015-16

Employee rate Band Weekly earnings Employer rate Weekly earnings
0% LEL Up to £112 - -
0% - £112 to £155 0% £1 to £156
12% - £155 to £815 13.8% Above £156
2% UEL Over £815 - -

Rates: 2014-15

Employee rate Band Weekly earnings Employer rate Weekly earnings
0% LEL Up to £112 - -
0% - £112 to £155 0% £1 to £156
12% - £155 to £805 13.8% Above £156
2% UEL Over £805 - -

Rates: 2013-14

Employee rate Band Weekly earnings Employer rate Weekly earnings
0% LEL Up to £112 - -
0% - £112 to £155 0% £1 to £156
12% - £155 to £797 13.8% Above £156
2% UEL Over £797 - -

National Insurance rates 2011/12 to 2012/13

Employee rate Band 2012/13
Weekly earnings
2011/12
Weekly earnings
Employer rate 2012/13
Weekly earnings
2011/12
Weekly earnings
0% LEL Up to £107 Up to £102 - - -
0% - £107 to £146 £102 to £139 0% £1 to £144 £1 to £135.99
12% - £146 to £817 £139 to £817 13.8% Above £144 Above £136
2% UEL Over £817 Over £817 - - -

National Insurance rates 2008/09 to 2010/11

Employee rate Employer rate Band 2010/11
Weekly earnings
2009/10
Weekly earnings
2008/09
Weekly earnings
- - LEL Up to £97 Up to £95 Up to £90
0% 0% - £97.01 to £110 £95.01 to £110 £90.01 to £105
11% 12.8% - £110.01 to £844 £110.01 to £844 £105.01 to £770
1% 12.8% UEL £844 + £844 + £770 +
LEL= Lower earnings limit
UEL = Upper earnings limit

National Insurance rates: other & contracted out rates
2012/13 to 2016/17 2011/12 2010/11
Employers Class 1A on taxable benefits in kind 13.8% 13.8% 12.8%
Employees' contracted-out rebate * 1.4% 1.6% 1.6%
Married women's reduced rate between primary threshold and upper earnings limit 5.85% 5.85% 4.85%
Married women's rate above upper earnings limit 5.85% 5.85% 5.85%
Employers' contracted-out rebate, salary-related schemes* 3.4% 3.7% 3.7%
Employers' contracted-out rebate, money-purchase schemes N/a 1.4% 1.4%
National Insurance rates (self-employed)
2016/17 2015/16 2014/15
Type Profits £ Rate Profits £ Rate Profits £ Rate
Class 2 Flat rate 5,965 + £2.80 per week 5,965 + £2.80 per week 5,885 + £2.75 per week
Class 4 Up to £8,060 0% Up to £8,060 0% Up to 7,956 0%
Class 4 Up to £8,060 9% 8060 to 42,385 9% 7,956 to 41,865 9%
Class 4 Above 43,000 2% Above 42,385 2% Above 41,865 2%

National Insurance rates (self-employed) - continued
2013/14 2012/13 2011/12 2010/11 & 2009/10
Type Profits £ Rate Profits £ Rate Profits £ Rate Profits £ Rate
Class 4 Over 5,725 £2.70 per week Over 5,595 £2.65 per week Over 5,315 £2.50 per week Over 5,075 £2.40 per week
Class 4 Up to 7,755 0% Up to 7,605 0% Up to 7,225 0% Up to 5,715 0%
Class 4 7,755 to 41,450 9% 7,605 to 42,475 9% 7,225 to 42,475 9% 5,716 to 43,875 8%
Class 4 Over 41,450 2% Over 42,475 2% Over 42,475 2% Over 43,875 1%
National Insurance rates (self-employed) - continued
2008/09 2008/09
Type Profits £ Rate
Class 2 Flat rate Over 4,825 £2.30 per week
Class 4 Up to 5,435 0%
Class 4 5,435 to 40,040 8%
Class 4 Over 40,040 1%

* Share fishermen and volunteer workers are subject to a higher rate


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