The 2016 Budget report – Tax and NIC tables
Main income tax allowances and reliefs
| 2015/16 | 2016/17 | |
| £ | £ | |
| Personal allowance – standard | 10,600 | 11,000 |
| – Born before 6 April 1938 | 10,660 | N/A |
| Personal allowance reduced if total income exceeds * | 100,000 | 100,000 |
| Transferable tax allowance (marriage allowance) ** | 1,060 | 1,100 |
| Married couple’s allowance*** – minimum amount | 3,220 | 3,220 |
| – maximum amount | 8,355 | 8,355 |
| Maintenance to former spouse *** | 3,220 | 3,220 |
| Married couple’s allowance reduced if total income exceeds | 27,700 | 27,700 |
| Employment termination lump sum limit | 30,000 | 30,000 |
* For 2015/16 and 2016/17 the reduction is £1 for every £2 additional income over £100,000. As a result there is no personal allowance if total income exceeds £122,000 (£121,200 for 2015/16).
** Available to spouses and civil partners born after 5 April 1935, provided neither party pays tax at above basic rate.
*** Relief at 10%. Available only if at least one of the couple was born before 6 April 1935.
**** For 2015/16 and 2016/17 the reduction is £1 for every £2 additional income over the total income threshold. Standard allowance(s) only are available if total income exceeds:-
| 2015/16 | 2016/17 | |
| £ | £ | |
| Taxpayer born before 6 April 1938[personal allowance] | 27,820 | N/A |
| Taxpayer born before 6 April 1935 [married couple’s allowance] | 38,090 | 37,970 |
INCOME TAX RATES
| 2015/16 | 2016/17 | |
| £ | £ | |
| Starting rate | 0% | 0% |
| Starting rate on savings income | 1-5,000 | 1-5,000 |
| Personal savings allowance (for savings income) | ||
| – Basic rate taxpayers | N/A | 1,000 |
| – Higher rate taxpayers | N/A | 500 |
| – Additional rate taxpayers | N/A | Nil |
| Basic rate | 20% | 20% |
| Maximum tax at basic rate * | 6,357 | 6,400 |
| Higher rate – 40% | 31,786-150,000 | 32,001-150,000 |
| Tax on first £150,000+ | 53,643 | 53,600 |
| Additional rate on income over £150,000 | 45% | 45% |
| Discretionary and accumulation trusts (except dividends) | 45% | 45% |
| Discretionary and accumulation trusts (dividends) ** | 37.5%*** | 38.1% |
| Tax credit attaching to dividends | 10% | N/A |
| Dividend nil rate band (dividend allowance) | N/A | 1-5,000 |
| Basic rate on dividends | 10%*** | 7.5% |
| Higher rate on dividends | 32.5%*** | 32.5% |
| Additional rate on dividends | 37.5%*** | 38.1% |
| High income child benefit charge | 1% of benefit per £100 income between £50,000 and £60,000 | |
* Assumes starting rate band not available and personal savings allowance is ignored. £5,400 on first £32,000 (£5,357 on first £31,785 in 2015/16) and £52,600 (£52,643 in 2015/16) on first £150,000 if full starting rate band is available.
** Up to the first £1,000 of gross income is generally taxed at the standard rate, ie. 20% or 7.5% as appropriate.
*** 10% covered by dividend tax credit (2015/16 only)
CAR BENEFITS
The charge is based on a percentage of the car’s ‘price’. ‘Price’ for this purpose is the list price at the time the car was first registered plus the price of extras.
For cars first registered after 31 December 1997 the charge, based on the car’s ‘price’, is graduated according to the level of the car’s approved CO2 emissions.
For petrol cars with an approved CO2 emission figure.
| CO2g/km1 | % of price subject to tax2 | CO2g/km | % of pricesubject to tax2 | CO2g/km | % of pricesubject to tax2 | |||
| 15-16 | 16-17 | 15-16 | 16-17 | 15-16 | 16-17 | |||
| 50 or less | 5 | 7 | 125–9 | 20 | 22 | 170–4 | 29 | 31 |
| 51–75 | 9 | 11 | 130–4 | 21 | 23 | 175–9 | 30 | 32 |
| 76–94 | 13 | 15 | 135–9 | 22 | 24 | 180–4 | 31 | 33 |
| 95–99 | 14 | 16 | 140–4 | 23 | 25 | 185–9 | 32 | 34 |
| 100–4 | 15 | 17 | 145–9 | 24 | 26 | 190–4 | 33 | 35 |
| 105–9 | 16 | 18 | 150–4 | 25 | 27 | 195–9 | 34 | 36 |
| 110–4 | 17 | 19 | 155–9 | 26 | 28 | 200–4 | 35 | 37 |
| 115–9 | 18 | 20 | 160–4 | 27 | 29 | 205–9 | 36 | 37 |
| 120–4 | 19 | 21 | 165–9 | 28 | 30 | 210 and over | 37 | 37 |
Notes
- The exact CO2 emissions figure should be rounded down to the nearest 5 g/km for levels of 95g/km or more.
- For all diesels add 3%, subject to maximum charge of 37%.
CAR FUEL BENEFITS
For cars with an approved CO2 emission figure, the benefit is based on a flat amount of £22,200 (£22,100 for 2015/16). To calculate the amount of the benefit the percentage figure in the above car benefits table (that is from 7% to 37%) is multiplied by £22,200. The percentage figures allow for a diesel fuel surcharge. For example, in 2016/17 a petrol car emitting 132 g/km would give rise to a fuel benefit of 23% of £22,200 = £5,106.
INHERITANCE TAX
| Cumulative chargeable transfers [gross] | tax rate on death% | tax rate in lifetime*% | ||
| 2015/16£ | 2016/17£ | |||
| Nil rate band ** | 325,000 | 325,000 | 0 | 0 |
| Excess | No limit | No limit | 40 *** | 20 |
* Chargeable lifetime transfers only.
** On the death of a surviving spouse on or after 9 October 2007, their personal representatives may claim up to 100% of any unused proportion of the nil rate band of the first spouse to die (regardless of their date of death).
*** 36% where at least 10% of net estate before deducting the charitable legacy is left to charity.
CAPITAL GAINS TAX
Main exemptions and reliefs
| 2015/16£ | 2016/17£ | |
| Annual exemption | 11,100* | 11,100* |
| Principal private residence (PPR) relief | No limit | No limit |
| Chattels exemption | £6,000 | £6,000 |
| Entrepreneurs’ relief | Lifetime cumulative limit £10,000,000. Gains taxed at 10% | Lifetime cumulative limit £10,000,000. Gains taxed at 10% |
* Reduced by at least 50% for most trusts.
Rates of tax
| Individuals: | 10% (18% for 2015/16) on gains within basic rate band, 20% (28% for 2015/16) for gains in higher and additional rate bands |
| Trustees and personal representatives: | 20% for 2016/17, 28% for 2015/16 |
| Residential property: | Gains which are not eligible for PPR relief taxed at 18% or 28% in 2016/17 and 2015/16 |
STAMP DUTY LAND TAX, LAND AND BUILDINGS TRANSACTION TAX AND STAMP DUTY
UK excluding Scotland: SDLT
| Residential (on slice of value) | Rate** | Commercial (on slice of value) | Rate *** |
| £125,000 or less | Nil | £150,000 or less | Nil |
| £125,001 to £250,000 | 2% | £150,001 to £250,000 | 2% |
| £250,001 to £925,000* | 5% | Over £250,000 | 5% |
| £925,001 to £1,500,000* | 10% | ||
| Over £1,500,000* | 12% | ||
| * 15% for purchases over £500,000 by certain non-natural persons** All rates increased by 3% for purchase of additional residential property from 1 April 2016 if value is £40,000 or more
*** Rates from 17 March 2016 |
|||
Scotland: LBTT
| Residential (on slice of value) | Rate** | Commercial (on slice of value) | Rate |
| £145,000 or less | Nil | £150,000 or less | Nil |
| £145,001 to £250,000 | 2% | £150,001 to £350,000 | 3% |
| £250,001 to £325,000 | 5% | Over £350, 000 | 4.5% |
| £325,001 to £750,000* | 10% | ||
| Over £750,000* | 12% | ||
| * 15% for purchases over £500,000 by certain non-natural persons** All rates increased by 3% for purchase of additional residential property from 1 April 2016 if value is £40,000 or more | |||
UK Stamp Duty (including SDRT)
| Stocks and marketable securities: | 0.5% |
| No stamp duty charge unless the duty exceeds £5 | |
CORPORATION TAX
| Year Ending 31 March | ||
| 2016 | 2017 | |
| Main rate | 20% | 20% |
TAX-PRIVILEGED INVESTMENTS [MAXIMUM INVESTMENT]
| 2015/16£ | 2016/17£ | |
| ISA | ||
| Overall per tax year: | 15,240 | 15,240 |
| Maximum in cash for 16 and 17 year olds | 15,240 | 15,24,280p duty 000000 |
| Junior ISA | 4,080 | 4,080 |
| ENTERPRISE INVESTMENT SCHEME(30% income tax relief) | 1,000,000* | 1,000,000* |
| Maximum carry back to previous tax year for income tax relief | 1,000,000 | 1,000,000 |
| SEED ENTERPRISE INVESTMENT SCHEME(50% income tax relief) | 100,000 ** | 100,000 ** |
| VENTURE CAPITAL TRUST(30% income tax relief) | 200,000 | 200,000 |
* No limit for CGT reinvestment relief.
** 50% CGT reinvestment exemption in 2015/16 and 2016/17
PENSIONS
| 2015/16 | 2016/17 | |
| Lifetime allowance* | £1,250,000 | £1,000,000 |
| Lifetime allowance charge:Excess drawn as lump sum
Excess drawn as income |
55% of excess25% of excess | |
| Annual allowance | £80,000 ** | £40,000 *** |
| Money purchase annual allowance | £20,000 ** | £10,000 |
| Annual allowance charge | 20%-45% of excess | |
| Max. relievable personal contribution | 100% relevant UK earnings or £3,600 gross if greater | |
* May be increased under 2006, 2012 or 2014 or forthcoming 2016 transitional protection provisions
** Subject to transitional provisions
*** Subject to 50% taper down to a minimum of £10,000 based on adjusted net income in excess of £150,000, if threshold income exceeds £110,000
NATIONAL INSURANCE CONTRIBUTIONS
| Class 1 Employee | ||||
| 2015/16 | 2016/17 | |||
| Employee | Employer | Employee | Employer | |
| Main NIC rate | 12% | 13.8% | 12% | 13.8% |
| No NICs on first:Under 21*
21* & over |
£155 pw£155 pw | £815 pw£156 pw | £155 pw£155 pw | £827 pw£156 pw |
| Main NIC charged up to | £815 pw | No limit | £827 pw | No limit |
| Additional NIC rateon earnings over | 2%£815 pw | N/A | 2%£827 pw | N/A |
| Certain married women | 5.85% | 13.8% | 5.85% | 13.8% |
* Under 25 for apprentices in 2016/17 only
| Contracted Out Rebates | 2015/16 | 2016/17 | ||
| Rebate on | £112.01 – £770 pw | N/A | ||
| Salary-related scheme only | 1.4.% | 3.4% | ||
| Limits and Thresholds | 2015/16 | 2016/17 | ||
| Weekly£ | Yearly£ | Weekly£ | Yearly£ | |
| Lower earnings limit | 112 | 5,824 | 112 | 5,824 |
| Primary earnings threshold | 155 | 8,060 | 155 | 8,060 |
| Secondary earnings threshold | 156 | 8,112 | 156 | 8,112 |
| Upper secondary threshold – U21s* | 815 | 42,385 | 827 | 43,000 |
| Upper accrual point | 770 | 40,040 | N/A | N/A |
| Upper earnings limit | 815 | 42,385 | 827 | 43,000 |
* Under 25 for apprentices in 2016/17 only
| Self-employed and non-employed | 2015/16 | 2016/17 | |
| Class 2 | |||
| Flat rateSmall profits threshold | £2.80 pw£5,965 pa | £2.80 pw£5,965 pa | |
| Class 4 (Unless over state pension age on 6 April) | |||
| On profits | £8,060 – £42,385 pa: 9%Over £42,385 pa: 2% | £8,060 – £43,000 pa: 9%Over £43,000 pa: 2% | |
| Class 3 (Voluntary) | |||
| Flat rate | £14.10 pw | £14.10 pw | |
Why not talk to the professionals about properly managing your finances
Call us on 01273 457100 020 7871 5387 01403 333666
Or email us on info@opusgold.com