Tax Tables
| £ per year (unless stated) | 2016/17 | 2015/16 |
|---|---|---|
| Personal allowance (age under 65) | £11,000 | £10,600 |
| Blind person’s allowance | £2,290 | £2,290 |
| Dividend tax allowance | £5,000 | N/A |
| Personal Savings Allowance (PSA's) | ||
| - Basic rate taxpayer | £1,000 | N/A |
| - Higher rate taxpayer | £500 | N/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| *PA will be withdrawn at £1 for every £2 by which 'adjusted income' exceeds £100,000.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 | ||
|---|---|---|
| 2016/17 | 2015/16 |
|
| 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 £150,000 | Over £150,000 |
| Capital Gains Tax | 2016/17 | 2015/16 |
| Individual to Basic Rate | 10% | 20% |
| Individual Above Basic Rate | 20% | 28% |
| Entrepreneurs Relief | 10% | 10% |
| Trusts, estates | 20% | 28% |
| Corporation tax | ||
|---|---|---|
| 2016/17 | 2015/16 | |
| Corporation tax rate | 20% | 20% |
| Research and development releif | From | From |
| 1.4.2016 | 1.4.2015 | |
| SME enhanced expenditure deduction* | 130% | 130% |
| Large company enhanced expenditure deduction* | N/A | 30% |
| 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) | Employee | Employer |
| Main NIC rate | 12% | 13.8% |
| No NIC on first | £155pw | £156pw |
| Main rate* charged up to | £827pw | no limit |
| 2% rate on earnings above | £827pw | N/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 - £43,000 | 9.0% | |
| On profits over £43,000 | 2.0% |
| Annual Investment Limits | 2016/17 | 2015/16 |
|---|---|---|
| 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 releif | Unlimited | Unlimited |
| 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 pensions | 2016/17 | 2015/16 |
|---|---|---|
| Lifetime allowance (LA) | £1.00m | £1.25m |
| Annual allowance (AA) | £40,000 | £40,000 |
| LA charge if excess drawn as | Cash 55% | Income 25% |
| AA charge on excess inputs | 20% - 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 Pension | 2016/17 | 2015/16 |
| Single person | £119.30 | £115.95 |
| Married Couple | £190.80 | £185.45 |
| New state pension * | £155.65 | N/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/km | Petrol | Diesel |
| 0-50 | 7% | 10% |
| 51 - 75 | 11% | 14% |
| 76 - 94 | 15% | 18% |
| Above 94 | Add 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 transport | Per business mile | |
| Cars first 10,000 miles | 45p | |
| Cars over 10,000 miles | 25p | |
| Business passengers | 5p | |
| Motorcycles | 24p | |
| Bicycles | 20p |
| Capital Gains Tax | ||
|---|---|---|
| Annual exepmtion | 2016/17 | 2015/16 |
| Individuals, estates | 11,100 | 11,100 |
| Most trusts | 5,550 | 5,550 |
| 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 & Machinery | Limit | |
| 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 equipment | 100% | |
| - 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 year | 100% | |
| 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 value | Annual charge to | |
| 31.3.2017 | 31.3.2016 | |
| £0.5m - £1m | £3,500 | N/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 |
| £20m+ | £218,200 | £218,200 |
| Stamp Duty Land Tax (SDLT) | ||
| Residential property: | SDLT rate | |
| Purchase price | on the band* | |
| Up to £125,000 | Nil | |
| £125,001 - £250,000 | 2% | |
| £250,001 - £925,000 | 5% | |
| £925,001 - £1.5m | 10% | |
| £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 property | SDLT rate | |
| Purchase price | on the band | |
| Up to £150,000 | Nil | |
| £150,001 - £250,000 | 2% | |
| £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 scheme | Up to £150,000 | |
| Must leave scheme if annual taxable turnover | Exceeds £230,000 |
| Inheritance Tax | 2016/17 | 2015/16 |
|---|---|---|
| Nil rate band* | £325,000 | £325,000 |
| Rate of tax above nil rate band** | 40% | 40% |
| Lifetime transfers to most trusts | 20% | 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 - 4 | 80 | |
| 4 - 5 | 60 | |
| 5 - 6 | 40 | |
| 6 - 7 | 20 | |
| Annual exemptions for lifetime gifts include £3,000 per donor and £250 per recipient |
| Key dates and deadlines | |||
|---|---|---|---|
| Self assessment payment dates | 2016/17 | 2015/16 | |
| 1st payment on account | 31 January | 2017 | 2016 |
| 2nd payment on account | 31 July | 2017 | 2016 |
| Balancing payment | 31 January | 2018 | 2017 |
| CGT | 31 January | 2018 | 2017 |
| Other payment dates | |||
| Class 1A NIC | 19 July | 2017 | 2016 |
| Class 1B NIC | 19 October | 2017 | 2016 |
| 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 employees | 31 May 2016 | ||
| P9D, P11D, P11D(b) | 6 July 2016 | ||
| Self assessment tax return (SATR) paper version | 31 October 2016 | ||
| Online SATR if outstanding tax | |||
| to be included in 2017/18 PAYE code | 30 December 2016 | ||
| Online SATR | 31 January 2017 |
