Tax Tables

2016/17 Tax Tables

Income Tax

Rates 16/17 15/16
Starting rate 0% 0%
On savings income up to* £5,000 £5,000
Basic rate of 20% on income up to £32,000 £31,785
Higher rate of 40% on income £32,001–£150,000 £31,786–£150,000
Additional rate of 45% on income over £150,000 £150,000
Dividends for: Basic rate taxpayers 10% 10%
Higher rate taxpayers 32.5% 32.5%
Additional rate taxpayers 37.5% 37.5%
Trusts: Standard rate band generally £1,000 £1,000
Rate applicable to trusts – dividends 37.5% 37.5%
Rate applicable to trusts – other income 45% 45%

*Not available if taxable non-savings income exceeds the starting rate band.

Main Personal Allowances and Reliefs

16/17 15/16
Personal (basic) £11,000 £10,600
Personal reduced if net income exceeds* £100,000 £100,000
Transferable tax allowance for married couples £1,100 £1,060
Personal (age) if born between 6/4/38 and 5/4/48 N/A N/A
Personal (age) if born before 6/4/38 £11,000 £10,660
Personal (age) reduced if net income exceeds* £27,700 £27,700
Married couple’s allowance*† – maximum £8,355 £8,355
Married couple’s allowance*† – minimum £3,220 £3,220
Blind person’s allowance £2,290 £2,290
Rent-a-room tax-free income £7,500 £4,250

*£1 reduction for every £2 of additional income over the income threshold.

†Relief at 10% if at least one of the couple was born before 6/4/35.

Venture Captital Trust (VCT) at 30%

16/17 15/16
Tax-free dividends. No CGT on disposal. £200,000 £200,000

Enterprise Investment Sceme (EIS) at 30%

16/17 15/16
£1,000,000 £1,000,000
EIS eligible for CGT deferral relief No Limit No Limit
Seed EIS (SEIS) at 50% £100,000 £100,000
SEIS CGT reinvestment relief 50% 50%

Registered Pensions

16/17 15/16
Lifetime allowance £1,000,000 £1,250,000
Annual allowance £40,000 £40,000
Money purchase annual allowance £10,000 £10,000
Annual allowance charge on excess 20%–45% 20%–45%

Max. pension commencement lump sum 25% of pension benefit value

Lifetime allowance charge if excess drawn as cash 55% / income 25%

Maximum relievable personal contribution capped by the annual allowance
and 100% of relevant UK earnings or £3,600 if greater.

 

 

National Insurance Contributions

Class 1 Employed Not Contracted-Out of State Second Pension (S2P) 16/17 Employee Employer
NICs rate 12% 13.8%
No NICs on the first – Under 21 £155 pw £827 pw
No NICs on the first – 21 and over £155 pw £156 pw
NICs charged up to £827 pw No limit
2% NICs on earnings over £827 pw N/A
Certain married women 5.85% 13.8%

Limits and Thresholds  

Weekly Monthly Annual
Lower earnings limit £112 £486 £5,824
Primary earnings threshold £155 £672 £8,060
Secondary earnings threshold £156 £676 £8,112
Upper accrual point £770 £3,337 £40,040
Upper earnings limit and upper secondary earnings threshold (under 21) £827 £3,532 £43,000
Class 1A Employer On most taxable benefits in kind 13.8%
Class 1B Employer On PAYE settlement agreements 13.8%
Self-Employed Class 2 Flat rate £2.80 pw £145.60 pa
Self-Employed Small profits threshold £5,965 pa
Self-Employed Class 4 On profits £8,060–£42,385 pa 9%
Over £42,385 pa 2%
Class 3 Voluntary Flat rate £14.10 pw £733.20 pa
Class 3A Voluntary (from 12/10/15) Amount depending on age

Basic State Pension

16/17 Weekly Annual
Full basic state pension £155.65 £8,093.80

 Property Transaction Taxes (SDLT)

Note: 15% on total value of all UK properties worth over £500,000 if purchased

by companies and certain other non-natural entities.

Stamp Duty and SDRT: Stocks and marketable securities 0.5%

No charge to stamp duty unless amount due exceeds £5.

Residential property value UK (excl. Scotland) on slices Rate %
Up to £125,000 0
£125,001–£250,000 2
£250,001–£925,000 5
£925,001–£1,500,000 10
Over £1,500,000 12

Tax-Free Savings

ISA Limits 16/17
Individual Savings Account (ISA) £15,240
Junior ISA and Child Trust Fund £4,080

Capital Gains Tax (CGT)

Tax Rates – Individuals   16/17    15/16
Up to basic rate limit 18% 18%
Above basic rate limit 28% 28%
Tax Rate – Trusts and Estates     28% 28%

Exemptions

Individuals, estates £11,100 £11,000
Trusts generally £5,550 £5,500
Chattels exemptions: proceeds up to £6,000 £6,000
Max. chargeable gains 5⁄3 rds of excess proceeds over limit.

Entrepreneurs’ Relief

Gains taxed at 10% up to lifetime limit of £10,000,000 £10,000,000

For trading businesses and companies (minimum 5% employee/director
shareholding) held for one year or more.

 

Inheritance Tax (IHT)

16/17 15/16
Nil-rate band* £325,000 £325,000
Rate of tax on excess 40% † 40%†
Lifetime transfers to and from certain trusts 20% 20%
Exemption for non-UK domiciled
spouse/civil partner
£325,000 £325,000

100% relief: businesses, unlisted and AIM companies, certain farmland/buildings

50% relief: certain other business assets e.g. farmland let pre 1/9/95

Annual exempt gifts of: £3,000 per donor £250 per donee *Up to 100% of the unused proportion of a deceased spouse’s/civil partner’s nil-rate band can be claimed on the survivor’s death.

†36% where at least 10% of net estate left to charity.

 

Tax charge on gifts within 7 years of death

  Years before death 0 – 3 3 – 4 4 – 5 5 – 6 6 – 7
% of death tax charge 100 80 60 40 20

Corporation Tax

Effective rate on profits to 31/3/17  31/3/16
£0–£300,000 20% 20%
£300,001–£1,500,000 20% 20%
£1,500,001 and over 20% 20%

The Tax Tables are for information only based on our understanding of tax rates and reliefs. We are not responsible for any errors or omissions and nothing on this page constitutes tax advice. If you would like advice, please get in touch.

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