Farley And Partners

TAXABLE INCOME BANDS AND TAX RATES

  2015/16 2014/15
Savings starting rate limit £5,000* £2,880
Savings starting rate 0% 10%
Basic rate band £31,785 £31,865
Basic rate 20% 20%
Dividend ordinary rate 10% 10%
Higher rate band £31,786-£150,000 £31,866-£150,000
Higher rate 40% 40%
Dividend upper rate 32.5% 32.5%
Additional rate band over £150,000 over £150,000
Additional rate 45% 45%
Dividend additional rate 37.5% 37.5%

 

Allowances that reduce taxable income

    2015/16 2014/15
Personal allowance Born after 5 April 1948 £10,600 £10,000 
Born between 6 April 1938 and 5 April 1948* £10,600 £10,500 
Born before 6 April 1938* £10,600  £10,660 
 Married couples/civil partners transferable allowance £1,060  N/A
Blind person’s allowance  £2,290  £2,230 

 

* The higher personal allowances are reduced by £1 for each £2 of income above £27,700 (2014/15, £27,000), until £10,600 (2014/15, £10,000) is reached. This is further reduced by £1 for each £2 of income from £100,000 to £121,200 (2014/15, £120,000).

Allowances that reduce tax

  2015/16 2014/15
Married couple’s allowance £835.50 £816.50

 

Available to people born before 6 April 1935. The age for MCA is of the elder spouse or civil partner. The loss of tax reduction is 10p for each £2 of income above £27,700 (2014/15, £27,000) until £322 (2014/15, £314) is reached.

High income child beneit charge

  2015/16 2014/15
Threshold £50,000 £50,000

 

There is a tax charge of 1% of the child beneit received for each £100 that the threshold is exceeded up to a maximum of 100%.

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