Income tax, capital gains tax, inheritance tax and pension schemes

Income Tax

£ per year (unless stated)

 

 

2016-17 (£)

2015-16 (£)2014-15 (£)
Income Tax- The standard personal allowance is £11,000. This may be bigger if you receive blind person’s allowance, or smaller if you earn over £ 100,000.
You do not get a personal allowance if your income is over £122,000 in tax year 2017.
Personal allowance (age under 65) *11,00010,60010,000
Personal allowance (age 65-74)11,00010,60010,500
Personal allowance (age 75 and over)11,00010,66010,660
 
Married couple's allowance**8,3558,3558,165
Married couple's allowance** - minimum amount

 

3,220

3,2203,140
Income limit for age-related allowances27,70027,70027,000
Blind person’s allowance2,2902,2902,230
Marriage allowance****1,1001,060-
    
Starting rate band of 0% on savings income up to

 

5,000

5,000-
Starting rate band of 10% on savings income up to

 

-

-2,880
Basic rate of 20% on income;

 

0- 32,000

0 - 31,7850 - 31,865
10% on dividend income for 2014/15; 15/16, and 7.5% in 16/17   
Higher rate of 40% on income; 32.5% on dividend income

 

32,001- 150,000

31,786 - 150,00031,866 - 150,000

Additional rate of 45% on income over; 37.5% on dividend income in 2014/15, 15/16

38.1 % on Dividend in 16/17

 

Over 150,001

Over 150,001Over 150,001
 
Capital Gains Tax
Annual exempt amount   
Individuals, personal representatives and trustees for disabled people

 

11,100

11,10011,000
Other trustees5,5505,5505,500
Rates   
Individuals - within the remaining basic rate band18%/10%18%18%
Individuals - above the basic rate band28%/20%28%28%
Trustees or personal representatives of someone who has died

 

20%

28%28%
For gains qualifying for Entrepreneurs' Relief10%10%10%
    
Inheritance Tax
Rate40%40%40%
Lower Rate ***36%36%36%
Nil rate band325,000325,000325,000
 
Pensions
Annual Allowance40,00040,00040,000
Lifetime Allowance1,000,0001,250,0001,250,000

* Personal allowance reduced by 50% of income above £100,000.

** Married couple's allowance is given as a 10% tax credit. Either person must be born before 6th April 1935.

*** For deaths on or after 6th April 2012, a lower rate of Inheritance tax of 36% can apply where 10% or more of the deceased person's net estate is left to charity.

****You can claim Marriage Allowance if all the following apply:

  1. you’re married or in a civil partnership
  2. your annual income is £11,000 or less, plus up to £5,000 of tax-free savings interest
  3. your spouse’s annual income is between £11,001 and £43,000
  4. you were born on or after 6 April 1935