Income Tax

Allowances and reliefs 2015/16 2014/15
Personal (basic) £10,600 £10,000
Personal allowance reduced if net income exceeds £100,000 £100,000
Transferable tax allowance for married couples/civil partners £1,060 N/A
Personal (age) if born between 6/4/38 and 5/4/48 N/A £10,500
Personal (age) if born before 6/4/38 £10,660 £10,660
Personal (age) reduced if net income exceeds* £27,700 £27,000
Married couples/civil partners (minimum) at 10%† £3,220 £3,140
Married couples/civil partners (maximum) at 10%*† £8,355 £8,165
Child benefit charge1% of benefit for every £100 of income between £50,000 and £60,000
Blind person’s allowance £2,290 £2,230
Rent-a-room tax-free income £4,250 £4,250
Venture capital trust (VCT) at 30% £200,000 £200,000
Enterprise investment scheme (EIS) at 30% £1,000,000 £1,000,000
– EIS eligible for capital gains tax (CGT) deferral relief No limit No limit
Seed EIS (SEIS) at 50%
– SEIS CGT reinvestment relief 50% 50%
Registered pension scheme:
– annual allowance £40,000 £40,000
– money purchase annual allowance £10,000 N/A
– lifetime allowance £1,250,000 £1,250,000
*£1 reduction for every £2 of additional income over the income threshold.
† Where at least one spouse/civil partner was born before 6/4/35.

Rates 2015/16 2014/15
Starting rate 0% 10%
on savings income up to* £5,000 £2,880
Basic rate of 20% on income up to £31,785 £31,865
Higher rate of 40% on income £31,786-
£150,000
£31,866-
£150,000
Additional rate of 45% on income over £150,000 £150,000
Dividends for: basic rate taxpayers 10% 10%
higher rate taxpayers 32.5% 32.5%
additional rate taxpayers 37.5% 37.5%
Trusts: standard rate band generally £1,000 £1,000
dividends (rate applicable to trusts) 37.5% 37.5%
other income (rate applicable to trusts) 45% 45%
* Not available if taxable non-savings income exceeds the starting rate band.
Talk to Barnes Roffe today
Share this page:
Contact Us
ICAEW The Chartered Institute of Taxation ACCA IPG IR