Tax allowances 2015/16

Want to know your personal allowance, or what the ISA allowance is for 2015-16? Or how much stamp duty you’ll have to pay on a new home? Then check out our at-a-glance guide to tax allowances for 2015/16…

counting tool
    Click here for 2016/17 tax allowances 

Income tax – personal allowances

 

2014/15

2015/16

Change

Those born after April 5, 1948

£10,000

£10,600

+£600

Those born between April 6, 1938 and April 5, 1948

£10,500

£10,600

+£100

Those born before April 6, 1938

£10,660

£10,660

£0

Married couple's allowance (maximum)*

£8,165

£8,335

+£190

Married couple's allowance (minimum)**

£3,140

£3,220

+£80

Blind person’s allowance

£2,230

£2,290

+£60

These allowances may be lower depending on your income. As of 2013-14, an individual’s personal allowance will based upon date of birth and income in the tax year. For more information on how age-related allowances work visit http://www.hmrc.gov.uk/rates/it.htm

Married couple's allowance available to people born before April 6, 1935. Tax relief for this allowance is restricted to 10%.

*This allowance is reduced when the individual’s income is above the income limit. This is at a rate of £1 for every £2 above the income limit until it reaches the minimum amount. Any reduction in the married couple’s allowance applies after any reduction to the individual’s personal allowance.

** This is also the maximum relief for maintenance payments where at least one of the parties is born before 6 April 1935.

The Marriage Allowance, which comes into effect on April 6, 2015, entitles a spouse or civil partner to transfer up to £1,100 of their personal allowance to their partner, potential knocking £220 off their tax bill (tax at 20% is saved on the amount of allowance transferred).

Income – taxable bands

 

2014/15

2015/16

Basic rate 20%

£0 - £31,865

£0 - £31,785

Higher rate 40%

£31,866 - £150,000

£31,786 - £150,000

Additional rate 45%

Over £150,000

Over £150,000

National Insurance Contributions – lower earnings limit (below which not paid)

 

2014/15

2015/16

 Change

Individuals

 £7,956

£7956

£0

 

The self-employed are required to start paying NICs once annual profits reach £5,885. Voluntary Class 2 contributions may be made below this amount.

ISAs

 

Until April 5, 2015

From April 6, 2015

Change

Annual allowance

£15,000

£15,240

+ £240

Junior ISA allowance

£4,000

£4,080

+ £80

Child Trust Fund (CTF) subscription limit

£4,000

£4,080

+ £80

Inheritance tax

 

2014/15

2015/16

Change

Personal allowance

Up to £325,000

Up to £325,000

£0

Couple’s allowance

Up to £650,000

Up to £650,000

£0

Capital gains tax allowance

 

2014/15

2015/16

Change

Individuals

£11,000

£11,100

+£100

Pension scheme – personal allowance

 

2014/15

2015/16

Change

Annual allowance

£40,00

£40,00

£0

Lifetime allowance

£125,00

£125,00

£0

As of April 6, 2012 the lifetime allowance for pension savings was reduced by £300,000 from £1.8million to £1.5million. This was cut to £1.25million as of April 6, 2014

For any pension scheme members who have already built up savings in excess of £1.25 million, or have planned to do so as they were unaware that the lifetime allowance would not reduce from the current level, there will be a new form of protection called 'fixed protection'. For more information,
click here.

Stamp duty – residential

Rate

Total value of consideration

Zero

On the first £125,000 of the property price

2%

On the next £125,000

5%

On the next £675,000

10%

On the next £575,000

12%

On the rest (above £1.5million)

Stamp duty – non-residential

Rate

Total value of consideration

Zero

Nothing on the property price, premium or value up to £150,000 (annual rent less than £1,000)

1%

On properties up to £150,000 (annual rent £1,000 or more)

1%

On properties between £150,001 and £250,000 (rent £1,000 or more)

3%

On properties between £250,001 and £500,000 (rent £1,000 or more)

4%

On properties over £500,000 (rent £1,000 or more)

Disadvantaged Areas relief was abolished for transactions with an effective date on or after April 6, 2013. For more details, click here.

HM Revenue and Customs (HMRC) has 
SDLT calculators you can use to work out how much to pay.

From 1 April 2015 SDLT won’t apply in Scotland. Instead you’ll pay 
Land and Buildings Transaction Tax when you buy a property.

 

Please note: any rates or deals mentioned in this article were available at the time of writing. Click on a highlighted product and apply direct.

 

 

 

 

 

 

 

 

 

 

 

 

 

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