Tax Tables

£ per year (unless stated)2016/172015/16
Personal allowance (age under 65)£11,000£10,600
Blind person’s allowance£2,290£2,290
Dividend tax allowance£5,000N/A
Personal Savings Allowance (PSA's)
- Basic rate taxpayer£1,000N/A
- Higher rate taxpayer£500N/A
*PA will be withdrawn at £1 for every £2 by which 'adjusted income' exceeds £100,000. There will therefore be no allowance given if adjusted income is £122,000 or more (2015/16: £121,200)
Up to 10% of the PA (2016/17: £1,100; 2015/16: £1,060) can be transferred to a spouse or civil partner who is no more than a basic rate taxpayer.
The DTA taxes the first £5,000 of dividend at nil rather than the rate that would otherwise apply - see rates below. PSA operates as a nil rate band for interest income.
Income tax: Taxable bands  
Basic rate Band: 20%£32,000£31,785
Higher rate Band: 40%£32,001 - £150,000£31,786 - £150,000
Additional rate Band: 50%Over £150,000Over £150,000
Capital Gains Tax2016/172015/16
Individual to Basic Rate10%20%
Individual Above Basic Rate20%28%
Entrepreneurs Relief10%10%
Trusts, estates20%28%
Corporation tax  
Corporation tax rate20%20%
Research and development releifFromFrom
SME enhanced expenditure deduction*130%130%
Large company enhanced expenditure deduction*N/A30%
Large company R&D Expenditure Credit (RDEC)**11%11%
*Additional deduction for qualifying R&D
**Taxable expenditure credit for R&D
SMEs that make losses can surrender the deduction to HMRC in exchange for a payment of 14.5% of the loss.
From 1 April 2016, RDEC is the only scheme available for large companies.
National insurance contributions  
Class 1 (Employees)EmployeeEmployer
Main NIC rate12%13.8%
No NIC on first£155pw£156pw
Main rate* charged up to£827pwno limit
2% rate on earnings above£827pwN/A
Employment allowance per business**N/A£3,000
*Nil rate of employer NIC for employees under the age of 21 and apprentices under 25, up to £827pw
Employer contributions (at 13.8%) are also due on most taxable benefits and on tax paid on an employees behalf under a PAYE settlement agreement.
**Some businesses do not qualify, including certain sole director companies.
Class 2 (Self employed)
Flat rate per week£2.80
Small profits threshold£5,965
Class 3 (Voluntary)
Class 3: Flat rate per week£14.10
Class 3A: Contributions vary with age
Class 4 (Self employed)
On profits £8,061 - £43,0009.0%
On profits over £43,0002.0%
Annual Investment Limits2016/172015/16
Individual Savings Account£15,240£15,240
Junior ISA£4,080£4,080
EIS - 30% releif£1,000,000£1,000,000
EIS eligible for CGT deferral releifUnlimitedUnlimited
Seed EIS (SEIS) - 50% releif£100,000£100,000
SEIS - 50% exemption for reinvested gains£100,000£100,000
Venture Capital Trust (VCT) - 30% releif£200,000£200,000
Registered pensions2016/172015/16
Lifetime allowance (LA)£1.00m£1.25m
Annual allowance (AA)£40,000£40,000
LA charge if excess drawn asCash 55%Income 25%
AA charge on excess inputs20% - 45%
Annual relievable pension inputs are the higher of earnings (capped at AA) or £3,600
*For 2016/17 the AA is usually reduced by £1 for every £2 by which relevant income exceeds £150,000, down to a minimum AA of £10,000
State Pension2016/172015/16
Single person£119.30£115.95
Married Couple£190.80£185.45
New state pension *£155.65N/A
*applies to those reaching state retirement age after 5 April 2016
Car benefit 2016/17  
Taxable benefit is chargeable value multiplied by chargeable percentage. Chargeable value: initial list price of car (including most accessories).
Chargeable percentage
CO2 emissions g/kmPetrolDiesel
51 - 7511%14%
76 - 9415%18%
Above 94Add 1% for every 5g/km
Above 200 (petrol) / 185 (diesel)37% Maximum
Fuel: Employer provides fuel for private motoring in an employer-owned car; CO2 - based percentage from above table multiplied by £22,200
Tax free mileage allowances  
Employees own transportPer business mile
Cars first 10,000 miles45p
Cars over 10,000 miles25p
Business passengers5p
Capital Gains Tax  
Annual exepmtion2016/172015/16
Individuals, estates11,10011,100
Most trusts5,5505,550
Tax rate
Individual (to basic rate limit)*10%18%
Individual (above basic rate limit)*20%28%
Entrepreneurs' relief (ER)**10%10%
Trusts, estates*20%28%
*In 2016/17, individuals are taxed at 18% / 28% on gains on residential property and receipt of carried interest. Trusts are taxed at 28% in these circumstances.
**ER is available for lifetime gains of up to £10m. Qualifying disposals include a trading business, shares in a trading company (from a minimum 5% holding) by an officer/employee or certain holdings by external investors. Various conditions apply.
Main Capital Allowances  
Plant & MachineryLimit
100% Annual Investment Allowance (AIA)
- expenditure 1/4/14* - 31/12/15£500,000
- expenditure post 31.12.15**£200,000
*6.4.14 for unincorporated businesses and LLP's
**Transitional rules apply for accounting periods staddling a change in AIA limit.
Other rates
- energy and water efficient equipment100%
- writing down allowance: general pool (reducing balance)18%
- writing down allowance: special rate pool (reducing balance)8%
The special rate pool includes long life assets, integral plant in buildings, thermal insulation.
Motor cars (expenditure post 31.3.15)
CO2 emissions (g/km)Allowance
75 or less (new cars only) in first year100%
Up to 130 (in general pool)18% pa
Above 130 (in special rate pool)8% pa
Property taxes  
Annual tax on Enveloped Dwellings (ATED)
AETD applies to 'high value' residential properties owned via a corporate structure, unless the property is used for a qualifying purpose. From 1 April 2016 the tax applies to properties valued at more than £500,000 (£1m from 1 April 2015 - 31 March 2016; £2m from 1 April 2013 - 31 March 2015).
Property valueAnnual charge to
£0.5m - £1m£3,500N/A
£1m - £2m£7,000£7,000
£2m - £5m£23,350£23,350
£5m - £10m£54,450£54,450
£10m - £20m£109,050£109,050
Stamp Duty Land Tax (SDLT)
Residential property:SDLT rate
Purchase priceon the band*
Up to £125,000Nil
£125,001 - £250,0002%
£250,001 - £925,0005%
£925,001 - £1.5m10%
£1.5m +12%
A supplement of 3% of the total purchase price applies where a second home is purchased for more than £40,000 from 1 April 2016
*A rate of 15% applies to the total purchase price where the property is valued above £500,000 and purchased by a 'non-natural person' (e.g. a company)
Commercial propertySDLT rate
Purchase priceon the band
Up to £150,000Nil
£150,001 - £250,0002%
£250,000 +5%
Value Added Tax  
Standard rate (1/6 of VAT-inclusive price)20%
Registration level from 1.4.2016£83,000 pa
Deregistration level from 1.4.2016£81,000 pa
Flat rate scheme (FRS)
Annual taxable turnover to enter schemeUp to £150,000
Must leave scheme if annual taxable turnoverExceeds £230,000
Inheritance Tax2016/172015/16
Nil rate band*£325,000£325,000
Rate of tax above nil rate band**40%40%
Lifetime transfers to most trusts20%20%
100% Business Propert Relief (BPR) for all shareholdings in qualifying unquoted trading companies, qualifying unincorporated trading businesses and certain farmland / buildings.
100% Agricultural Property Relief (APR) available on agricultural value of qualifying farmland / buildings.
BPR or APR available at 50% on certain property.
*Up to 100% of the proportion of a deceased spouce's / civil partner's unused nil rate band may be claimed to increment the current nil rate band when the survivor dies.
**Rate reduced to 36% if at least 10% of the relevant estate is left to charity.
Reduced tax charge on gifts within 7 years before death
Years before death% of full death tax charge payable
0 - 3 100
3 - 480
4 - 560
5 - 640
6 - 720
Annual exemptions for lifetime gifts include £3,000 per donor and £250 per recipient
Key dates and deadlines   
Self assessment payment dates2016/172015/16
1st payment on account31 January20172016
2nd payment on account31 July20172016
Balancing payment31 January20182017
CGT31 January20182017
Other payment dates
Class 1A NIC19 July20172016
Class 1B NIC19 October20172016
Corporation tax is due 9 months and 1 day from the end of the accounting period, unless a 'large' company paying by quarterly instalments.
2015/16 Filing deadlines
Issue P60s to employees31 May 2016
P9D, P11D, P11D(b)6 July 2016
Self assessment tax return (SATR) paper version31 October 2016
Online SATR if outstanding tax
to be included in 2017/18 PAYE code30 December 2016
Online SATR31 January 2017