INCOME TAX TABLE

Income tax rates Note 2015/16 2014/15
Basic rate band – income up to £31,785 £31,865
  Starting rate for savings income *0% *10%
  Basic rate 20% 20%
  Dividend ordinary rate 10% 10%
Higher rate – income over £31,785 £31,865
  Higher rate 40% 40%
  Dividend upper rate 32.5% 32.5%
Additional rate – income over £150,000 £150,000
  Additional rate 45% 45%
  Dividend additional rate 37.5% 37.5%
Starting rate limit (savings income) *£5,000 *£2,880
If an individual’s taxable non-savings income exceeds the starting rate limit, then the starting rate will not be available for savings income
Trusts
For interest in possession trusts on all income, and other trusts on the first £1,000 of income (“standard rate band”):
dividend ordinary rate 4 10% 10%
savings income 4 20% 20%
other income 4 20% 20%
Income of other trusts above £1,000 is taxed at the special trust rates:
rate applicable to trusts 45% 45%
dividend trust rate 37.5% 37.5%
Personal allowance (PA)
Born after 5 April 1948 3 £10,600 £10,000
Born between 6 April 1938 and 5 April 1948 1,3 £10,600 £10,500
Born before 6 April 1938 1,3 £10,660 £10,660
Blind person’s allowance £2,290 £2,230
Married couple’s allowance (MCA)
Either partner born before 6 April 1935 (relief restricted to 10%) 2,3 £8,355 £8,165
Transferable tax allowance
For certain married couples and civil partners born after 5 April 1935 (relief 20%) 5 £1,060
Tax Shelters
Venture Capital Trust (VCT) up to £200,000 £200,000
Enterprise Investment Scheme (EIS) up to £1,000,000 £1,000,000
Seed Enterprise Investment Scheme up to £100,000 £100,000
Social Investment Tax Relief £1,000,000 £1,000,000
Golden Handshake max. £30,000 £30,000

Notes

  1. Allowances are reduced by £1 for every £2 of excess income over £27,700 (£27,000) until the basic allowance is reached for those born before 6 April 1938 (6 April 1948).
  2. The allowance for a married couple is subject to similar restrictions. The allowance reduction is subject to a minimum of £3,220. (For couples married before 5 December 2005, only the husband’s income is considered.) Only the higher earner’s income is considered for those married on or after 5 December 2005, or in a civil partnership).
  3. Regardless of the individual’s date of birth, the personal allowance, including the minimum age-related allowance, is reduced by £1 for every £2 that adjusted net income exceeds £100,000.
  4. The same settlor establishes several trusts. The “standard rate band” is divided equally, with a £200 minimum band for each trust.
  5. Spouses/civil partners born after 5 April 1935 are eligible. For those born after 5 April 1938, the allowance is 10% of the personal allowance. It allows a spouse or civil partner who is not subject to income tax at rates higher than the basic rate to transfer this portion of their allowance to their spouse/civil partner. The recipient must not be subject to taxation over the basic rate. The recipient is entitled to a tax break equal to 20% of the transferred amount.