Summary of tax
rates and reliefs
March 2015
Marble Arch, King Street
Knutsford, Cheshire WA16 6HD
Tel: 01565 653804
Fax: 01565 653832
Email: click here
www.clarionwealth.co.uk
Clarion Wealth Planning Limited is authorised and regulated by the Financial Conduct Authority.
Company registered in England no. 6372922
Tax rates and allowances 2015-16
Pensions and savings
The main pension rates and tax free savings rates for individuals are as follows. These figures are
based on documents published by Her Majesty’s Revenue and Customs (HMRC). We have made every
effort to ensure that these figures are accurate. They are, however, provided only as a guide and
Clarion Wealth Planning Limited cannot be held responsible for any errors or omissions. The new tax
year (2015/16) commences on 6 April 2015. Because of the Easter Holiday, the last working day of the
current tax year will be Thursday 2 April.
Basic State Pension
2014/15
Weekly
£113.10
£67.80
2015-16
Annual
£5,881.20
£3,525.60
Single person
Spouse/civil
partner*
Total married
£180.90
£9,406.80
couple’s pension*
* For pensions that started before 6 April 2010
Weekly
£115.95
£69.50
Annual
£6,029.40
£3,614
£185.45
£9,643.40
In his 2013 Budget the Chancellor announced that the Single Tier State Pension would be introduced
from 2016. This will abolish the State Second Pension and pay a flat rate pension of £144 per week to
all UK citizens who retire after its implementation.
Individual Savings Account (ISA) Subscription Allowances
2014/15
Total annual subscription limit
£15,000
Stocks and shares ISA
£15,000
subscription limit
Cash ISA subscription limit
£15,000
Junior ISA subscription limit
£4,000
Child Trust Fund (CTF)
£4,000
contribution limit
2015/16
£15,240
N/A
N/A
£4,080
£4,080
Pension savings allowances
Allowance limits for approved registered UK pension schemes
2013/14
2014/15
2015/16
2016/17
Lifetime allowance
£1,500,000
£1,250,000
£1,250,000
£1,000,000
(overall fund size)
Annual contribution
£50,000
£40,000
£40,000
£40,000
limit*
* Employee contributions permitted up to the greater of 100 per cent of relevant UK earnings or
£3,600, subject to overall annual contribution limit
Lifetime allowance charge if excess drawn: as cash 55%; as income 25%
Maximum pension commencement lump sum (“tax-free cash”): 25% of pension benefit value
Tax rates and allowances
Following the Budget of 18 March 2015 the main tax allowances and rates of taxation likely to be of
interest to clients will be as follows. These figures are based on documents published by Her Majesty’s
Revenue and Customs (HMRC). We have made every effort to ensure that these figures are accurate.
They are, however, provided only as a guide and Clarion Wealth Planning Limited cannot be held
responsible for any errors or omissions. Please note that any rates and/or thresholds relating to the
tax year 2016/17, while published by HMRC at the time of the Budget, will be subject to confirmation
by the government that comes to power following the 2015 General Election, and should therefore
only be taken as indications, as opposed to unalterable facts. The new tax year (2015/16) commences
on 6 April 2015.
Income tax allowances (£ per year)
Personal allowance
2014/15
2015/16
2016/17
Born after 5 April 1948
£10,000
£10,600
£10,800
Born after 5 April 1938
£10,500
£10,600
£10,800
but before 6 April 1948
Born before 6 April 1938
£10,660
£10,660
£10,800
Income limit for personal
£100,000
£100,000
£100,000
allowance (after which
the allowance reduces by
£1 for every £2 of income
above the limit until it
reaches zero)
Income limit for personal
£27,000
£27,700 (born before 6
N/A
allowances (born before 6
April 1938)
April 1948)
Married couples allowance (available to people born before 6 April 1935, tax relief at 10%)
Maximum amount of
£8,165
£8,355
To be announced
married couple’s
allowance
Minimum amount of
£3,140
£3,220
To be announced
married couple’s
allowance
Marriage allowance where both born after 1935
Marriage allowance
N/A
£1,060
£1,080
Blind person’s allowance
Blind person’s allowance
£2,230
£2,290
To be announced
Income tax bands of taxable income (£ per year – the individual’s personal allowance should be
added to these figures to establish the income level at which they will begin to pay each marginal
rate. Those with income of £150,000 or more do not benefit from a personal allowance. HMRC
may also reduce an individual’s personal allowance through their tax code, for example to recoup
tax owed from a previous year.)
2014/15
2015/16
2016/17
Basic rate
£0-31,865
£0-31,785
£0-31,900
Higher rate
£31,866-£150,000
£31,786-£150,000
£31,901-150,000
Additional rate
Over £150,000
Over £150,000
Over £150,000
Income tax rates
Basic rate
Higher rate
Additional rate
Dividend ordinary rate (for
dividends otherwise taxable at the
basic rate (effective rate with tax
credit))
Dividend upper rate (for dividends
otherwise taxable at the higher
rate (effective rate with tax
credit))
Dividend additional rate (for
dividends otherwise taxable at the
additional rate (effective rate with
tax credit))
2014/15
20%
40%
45%
10%
(0%)
2015/16
20%
40%
45%
10%
(0%)
32.5%
(25%)
32.5%
(25%)
37.5%
(30.6%)
37.5%
(30.6%)
Starting rate for savings
10%
£2,880
Starting rate for savings
Starting rate limit for savings
0%
£5,000
Special rates for trusts’ income
Standard rate on first
£1,000 of income which
would otherwise be
taxable at the special
rates for trustees
Trust rate
Dividend trust rate
2013/14
Up to 20%,
depending on the
type of income
2014/15
Up to 20%, depending
on the type of income
2015/16
Up to 20%, depending
on the type of income
45%
37.5%
45%
37.5%
45%
37.5%
National Insurance Contributions (NICs): employee and employer rates and thresholds
2014/15
2015/16
Employee NICs rate (Class 1)
12%
12%
Employer NICs rate (Class 1)
13.8%
13.8%
No employee NICs on first (per
£153
£155
week)
No employer NICs on first (per
£153
£156
week, no upper limit)
Class 1 employee NICs charged on
£805
£815
up to (per week)
2% employee NICs charged on
£805
£815
weekly earnings above
Employee contracted-out rebate on
1.4%
1.4%
salary-related pension schemes
Class 1A Employer NICs on most
13.8%
13.8%
taxable benefits
Self-employed NICs rates and thresholds
2014/15
Class 2: flat rate (per week)
£2.75
Small earnings exception
£5,885
Voluntary Class 3 rate (per week)
£13.90
Class 4 (unless over state pension age on 6 April)
On annual profits £8,060-£42,385
N/A
On annual profits £7,956-£41,865
9%
On annual profits above £42,385
N/A
On annual profits above £41,865
2%
2015/16
£2.80
£5,965
£14.10
9%
N/A
2%
N/A
Capital Gains tax allowances and rates
Annual exempt amount (AEA) for
individuals, estates etc
AEA for most trusts
Rate for individuals up to higher
income tax rate threshold (add
gains above AEA to annual income)
Rate for individuals above higher
income tax rate threshold (add
gains above AEA to annual income)
Rate for trusts
Rate on gains subject to
entrepreneurs’ relief
Entrepreneurs’ relief lifetime limit
of gains
2014/15
£11,000
2015/16
£11,100
£5,500
18%
£5,550
18%
28%
28%
28%
10%
28%
10%
£10,000,000
£10,000,000
Inheritance tax (nil rate band frozen until 2017/18)
2014/15
Nil rate band (note that up to 100%
£325,000
of a deceased spouse’s or civil
partner’s nil rate band can be
transferred to the survivor and
claimed on their death)
Rate on excess
40%
Lower rate (where at least 10% of
36%
deceased’s estate is left to charity)
Rate for chargeable lifetime
20%
transfers
2015/16
£325,000
40%
36%
20%
Corporation tax rates (NB: In the 2013 Budget the Chancellor announced that, from April 2015, the
main rate and small companies rate would be harmonised at 20%)
Level of profits
2013/14
2014/15
2015/16
£0-300,000: small profits
20%
20%
N/A
rate
£300,001 - £1,500,000
Marginal rate
Marginal rate
N/A
Marginal rate relief
3/400th
1/400th
N/A
fraction
£1,500,001 or more: main
23%
21%
N/A
rate
All profits: main rate
N/A
N/A
20%
Stamp Duty Land Tax
Rate
Threshold for tax year 2014-15
Residential (up to
Non-residential
4 December
2014)
0%
£0-£125,000
£0-£150,000
1%
£125,001-£250,000 £150,001-£250,000
3%
£250,001-£500,000 £250,001-£500,000
4%
£500,001Over £500,000
£1,000,000
5%
£1,000,001N/A
£2,000,000
7%
Over £2,000,000
N/A
15% (applies to
Over £500,000
N/A
certain “nonnatural persons” –
eg some
companies)
Threshold for tax year 2015-16
Non-residential
£0-£150,000
£150,001-£250,000
£250,001-£500,000
Over £500,000
N/A
N/A
N/A
Last year’s Autumn Statement by the Chancellor of the Exchequer contained a radical reform of Stamp
Duty Land Tax charged on the purchase of residential property, which moved the thresholds for
different rates from a “cliff-edge” to a “marginal” basis – ie higher rates would now be paid only on
the portions of the price of the property above each threshold, rather than on the full value of the
transaction. This new regime came into force on 4 December 2014 and the rates applied during the
remainder of the 2014-15 tax year and in 2015-16 are as follows:
Rate (payable on
portion of value
above threshold)
0%
2%
5%
10%
12%
Threshold for tax year 2014-15
Residential (from 4 December 2014)
£0-£125,000
£125,001-£250,000
£250,001-£925,000
£925,001-£1,500,000
Over £1,500,000
Important Information
The above information is provided as a guide only. It is not intended to be an offer to buy or sell
securities and this document should not be regarded as an offer of solicitation to conduct investment
business. The value of investments and income derived from them can go down as well as up and you
may not receive back all the money that you invest. Any information relating to past performance of
an investment is not necessarily a guide to its future performance. The levels, bases and reliefs from
taxation are subject to change and their value depends on the individual circumstances of the
investor. The Financial Conduct Authority does not regulate taxation and trust advice. If you have any
questions please contact your advisor on 01565 653804.
Clarion Wealth Planning Limited
Marble Arch, King Street, Knutsford, Cheshire WA16 6HD
Tel: 01565 653804 Fax: 01565 653832
Email: click here www.clarionwealth.co.uk
Clarion Wealth Planning Limited is authorised and regulated by the Financial Conduct Authority.
Company registered in England no. 6372922