| Income Tax Allowances |
| Personal allowance | 2016/17 £ |
2015/16 £ |
| General | 11,000 | 10,600 |
| Income limit | 100,000 | 100,000 |
| Born before 6.4.1938 | 11,000 | 10,600 |
| Age allowance income limit | N/A | 27,700 |
| Minimum where income exceeds age limit (subject to general income limit) | N/A | 10,600 |
| Transferable marriage allowance | 1,100 | 1,060 |
| Married couple’s allowance1 (relief at 10%) Either partner born before 6.4.1935 Age allowance income limit Minimum where income exceeds limit |
8,355 27,700 3,220 |
8,355 27,700 3,220 |
| Blind person’s allowance | 2,290 | 2,290 |
| Dividend allowance | 5,000 | N/A |
| Personal Savings allowance Basic rate taxpayers Higher rate taxpayers |
1,000 N/A |
500 N/A |
| Income Tax Rates |
| Taxable Income (£) | Rate (%) | Dividend Rate (%) |
|
2016/17 0 – 32,000 32,001 – 150,000 Over 150,000 |
20 40 45 |
7.5 32.5 38.1 |
|
2015/16 0 – 31,785 31,786 – 150,000 Over 150,000 |
20 40 45 |
10 32.5 37.5 |
| Savings income is generally treated as the highest part of total income. A 0% starting rate, for saving income only, applies to the extent that such income falls within the first £5,000 of taxable income. If taxable non-saving income exceeds this limit, the starting rate does not apply. For 2016/2017, a 0% rate applies to savings income falling within the personal savings allowance.Income taxable at the starting rate for savings does not fall within the personal savings allowance
For 2016/2017, a 0% rate applies to dividend income within the dividend allowance. For 2015/2016, the dividend rates are applied to the dividend grossed-up by a tax credit of 1/9. For 2015/2016 and 2016/2017 the trust rate of income tax is 45%. For 2016/2017 the dividend trust rate is 38.1%. For 2015/2016, it is 37.5%. |
| National Insurance Contributions |
| 2016/17 |
| Class 1 (Earnings related) |
| Employees Weekly earnings |
| First £155 | Nil |
| £155.01- £827 | 12% |
| Over £827 | 2% |
| Employers Weekly earnings |
| First £156 | Nil |
| Over £156 | 13.8% |
| Employees’ rates are reduced to 5.85% for married women with valid certificates of election but the 2% rate above £827 still applies. Rates are nil for employees over state pensionable age. Normal employers’ contributions are still payable. Employer’s rates for employees under 21 and apprentices under 25 are nil on earnings upto £827 per week.
Employment allowance (per employer) – £3,000 a year. Class 1A and Class 1B – 13.8% |
| Inheritance Tax |
| Transfer after 5 April 2016 and before 6 April 2017 |
| Death Rates |
| Gross transfer | Rate % |
| Up to £325,0001 | Nil |
| Over £325,000 | 402 |
| Chargeable lifetime transfers are initially charged at 20%. Annual gifts of upto £3,000 per donor are exempt.
1Unused nil rate band is transferable to spouse or civil partner.2 36% where 10% or more of the net estate is left to charity. |
| Capital Gains Tax |
| Annual exempt amounts 2016/17 | £ |
| Individuals, disabled trusts, personal Representatives for year of death and Two years thereafter |
11,100 |
| Trusts generally | 5,550 |
| Rates 2016/17 Individuals |
| Standard rate | 10% |
| Higher rate | 20% |
| Trustees and personal representatives | 20% |
| Gains on residential property and carried interest | 18% / 28% |
| Gains to which entrepreneurs’ relief applies | 10% |
| Corporation Tax |
| Financial Year to | 31/3/2017 | 31/3/2016 |
| Rate | 20% | 20% |
| Stamp Taxes |
| Shares and marketable securities | 0.5%1 |
| Transfer of land and buildings |
| Residential (on band of consideration)3,4 | Rate |
| £0 – £125,000 | 0% |
| £125,001 – £250,000 | 2% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1,500,000 | 10% |
| Over £1,500,000 | 12% |
| Non-Residential (on band of consideration) | Rate |
| £0 – £150,000 | 0% |
| £150,001 – £250,000 | 2% |
| Over £250,000 | 5% |
| Leases (Rent – on band of net present value) |
| Residential | Non-residential | Rate |
| £0 – £125,000 | £0 – £150,000 | Nil |
| Over £125,000 | £150,001 – £5,000,000 | 1% |
| N/A | Over £5,000,000 | 2% |
|
Premiums Duty on premiums is the same as for transfers of land. |
|
1 Subject to lifetime limit of gains of £10 milion, A separate £10 milion lifetime limit applies to gains of external inverstors in unlisted trading companies on shares issued after 16 March 2016.
2 Rounded upto the nearest miltiple of £5. Transactions of £1,000 or less exempt. 3 Where the consideration exceeds £500,000 and the purchase is by – or by a partnership including – a company or collective investment scheme enveloping the property, the rate is 15% of the total consideration. 4 Rates are increased by 3 percentage points for certain purchases including purchases of addtional residential proprties by individuals. Transactions under £40,000 are excluded. |
| Car Benefit |
| CO2 emissions (2016/17) | % of list price |
| grams per km | Petrol | Diesel |
| 50 | 7 | 10 |
| 51- 75 | 11 | 14 |
| 76 – 94 | 15 | 18 |
| 95 | 16 | 19 |
| 100 | 17 | 20 |
| 105 | 18 | 21 |
| 110 | 19 | 22 |
| 115 | 20 | 23 |
| 120 | 21 | 24 |
| 125 | 22 | 25 |
| 130 | 23 | 26 |
| 135 | 24 | 27 |
| 140 | 25 | 28 |
| 145 | 26 | 29 |
| 150 | 27 | 30 |
| 155 | 28 | 31 |
| 160 | 29 | 32 |
| 165 | 30 | 33 |
| 170 | 31 | 34 |
| 175 | 32 | 35 |
| 180 | 33 | 36 |
| 185 | 34 | 37 |
| 190 | 35 | 37 |
| 195 | 36 | 37 |
| 200 | 37 | 37 |
| A 7% charge applies to cars incapable of producing CO2. |
| Car Fuel Benefit |
| For 2016/17, car fuel benefit is calculated by applying the above car benefit percentage to a figure of £22,200. |
| Tax-Free Mileage Allowances |
| Employee’s own vehicle |
| Motorcars and vans | 2016/17 |
| Up to 10,000 business miles | 45p |
| Over 10,000 business miles | 25p |
| Each passenger making same trip | 5p |
| Motorcycles | 24p |
| Cycles | 20p |
| Advisory fuel rates for company car from 1 March 2016 |
| Cylinder capacity | Petrol | Diesel | LPG |
| Up to 1,400cc | 10p | – | 7p |
| Up to 1,600 cc | – | 8p | – |
| 1,401 cc to 2,000 cc | 12p | – | 8p |
| 1,601cc to 2,000 cc | – | 10p | – |
| Over 2,000 cc | 19p | 11p | 13p |
| Fixed Rate Deduction |
| Unincorporated Business |
| Vehicle expenditure | Amount |
| Motorcars and goods vehicles | per mile |
| Up to 10,000 business miles | 45p |
| Over 10,000 business miles | 25p |
| Motorcycles | 24p |
| Business use of home | Amount |
| Hours worked per month | per month |
| 25 or more | £10 |
| 51 or more | £18 |
| 101 or more | £26 |
| Private use of business premises | Disallowable |
| Number of occupants | amount per month |
| 1 | £350 |
| 2 | £500 |
| 3 or more | £650 |
| Individual Savings Accounts |
| Junior ISA |
| Annual limit | annual limit |
| 2016/2017 | £15,240 | £4,080 |
| 2015/2016 | £15,240 | £4,080 |
| Investment Reliefs |
| Investment limit | Income tax relief rate |
| Enterprise investment scheme | £1,000,000 | 30% |
| Venture capital trusts | £200,000 | 30% |
| Seed enterprise investment scheme | £100,000 | 50% |
| Social investment relief | £1,000,000 | 30% |
| Value Added Tax |
| Standard rate | 20% |
| Lower rate | 5% |
| Registration threshold from 1 April 2016 | £83,000 pa |
| Deregistration limit from 1 April 2016 | £81,000 pa |
| Annual accounting scheme turnover limit | £1,350,000 pa |
| Cash accounting scheme turnover limit | £1,350,000 pa |
| Flat rate scheme turnover limit | £150,000 pa |
| Capital Allowances |
| Dredging (straight-line basis) Writing-down allowance |
Rate% 4 |
| Business premises renovation Initial allowance |
100 |
| Writing-down allowance for unrelieved Expenditure (straight-line basis) |
25 |
| Know-how (reducing balance basis) Writing-down allowance |
25 |
| Mineral extraction (reducing balance basis) Writing-down allowances General Acquisition of mineral asset |
25 10 |
| Patent rights (reducing balance basis) Writing-down allowance |
25 |
|
Plant and machinery (reducing balance basis) Annual investment allowance(max £200,000) |
100 |
| First-year allowances Energy-saving or Environmentally beneficial assets | 100 |
| New cars with CO2 emissions not exceeding 75g/km | 100 |
| New zero-emission goods vehicles | 100 |
| New assests for use in designated areas of enterprise zones | 100 |
| Writing-down allowances General Cars | 18 |
| Cars (other than low-emission cars) | 8 |
| Special rate expenditure (including integral features and thermal insulation) | 8 |
| Long-life assests | 8 |
| Research and development Allowance |
100 |
| Registered Pension Schemes |
| Individual contributions Maximum tax-relievable contributions are the higher of:
|
| 2016/17 |
| Annual allowance | £40,000 |
| Income limit | £150,000 |
| Minimum where income exceeds limit | £10,000 |
| Lifetime allowance | £1,000,000 |
| 2015/2016 |
| Annual allowance | £40,000 |
| Lifetime allowance | £1,250,000 |
| Any unused annual allowance can be carried forward for up to three years. |
| Tax Credits |
| Annual amounts 2016/17 Child tax credit |
£ |
| Family element | 545 |
| Child element (for each child) | 2,780 |
| Disabled child element | 3,140 |
| Severe disabled child enhancement | 1,275 |
| Working tax credit |
| Basic element | 1,960 |
| Lone parent and couple element | 2,010 |
| 30-hour element | 810 |
| Disability element | 2,970 |
| Severe disability element | 1,275 |
| Childcare element (up to 70% of costs) | Weekly |
| Maximum eligible cost (1 child) | 175 |
| Maximum eligible cost (2 or more) | 300 |
| Income thresholds |
| Income threshold | 6,420 |
| Eligible for child tax credit only | 16,105 |
| Withdrawal rate | 41% |
| Income rise disregard | 2,500 |
| Income fall disregard | 2,500 |
