Tax rates, limits and allowances for 2015/16

Income tax

The Personal Allowance - the amount of money you can earn each year without having to pay income tax: £10,600.

[Note: Those born before 6 April 1938 who receive annual income of up to £27,700 are entitled to a higher amount of up to £10,660. This higher personal allowance reduces by £1 for every £2 of net adjusted income above £27,700 and means those with income of £27,820 or more receive the standard personal allowance of £10,600. And if you earn above £100,000 a year, your Personal Allowance falls by £1 for every £2 that your adjusted net income is above £100,000. As points out, this means your allowance is reduced to zero if your income is £121,200 or above.]

Married couple's allowance (where at least one of the partners was born before 6 April 1935): Between £3,220 and £8,355. Tax relief restricted to 10%.

Income tax rate bands by annual gross salary (not including £10,600 Personal Allowance)
Basic rate of 20%: £0 - £31,785
Higher rate of 40%: More than £31,785 - £150,000
Additional rate of 45%: More than £150,000


Annual Allowance: £40,000 (you can carry forward unused allowances for the previous three tax years)
Lifetime Allowance: £1.25 million
State Pension: £115.95 (for those reaching state retirement age before April 2016)
Pension Guarantee Credit weekly income threshold: £151.20 (single people), £230.85 (couples)


Isa Allowance: £15,240. Can be held in cash or invested in stocks and shares in any combination.
Junior Nisa Allowance: £4,080
Starting rate for savings income: 0% up to £5,000 for those with annual income of less than £15,600.

Capital Gains Tax

Annual Exempt Amount: £11,100
Standard rate of CGT: 18%
Higher rate (for higher rate income tax payers): 28%
Rate for Entrepreneurs: 10%

Inheritance Tax

Inheritance Tax threshold: £325,000

Stamp Duty

UK excluding Scotland

For residential property/land:

Nothing on the first £125,000 of the property price, followed by:

• 2% between £125,001 and £250,000
• 5% between £250,001 and £925,000
• 10% between £925,001 and £1.5million
• 12% on anything above £1.5 million.

Scottish Land and Buildings Transaction Tax (LBTT)

Nothing on the first £145,000 of the property price, followed by:

• 2% between £145,001 and £250,000
• 5% between £250,001 and £325,000
• 10% on the next £325,001 and £750,000
• 12% on anything above £750,000.

National Minimum Wage (by age)

21+: £6.50 (rising to £6.70 from 1 October 2015)
18-20: £5.13 (£5.30)
16-17: £3.79 (£3.87)
Apprentice: £2.73 (£3.30)

National Insurance (Per week, unless stated)

Class 1 rate: 12% on weekly earnings between £155 and £815. 2% on weekly earnings over £815.
Married women's reduced rate between primary threshold and upper earnings limit: 5.85%
Class 2 small earnings exception (per year): £5,965
Class 2 rate: £2.80
Class 4 small earnings exception (per year): £8,060
Class 4 rate: 9% on profits between £8,060 and £42,385
2% on profits over £42,385.

Statutory Sick Pay

For employees earning at least £109 a week too unwell to go to work for four or more days in a row: £88.45

Statutory Maternity Pay

This is paid for up to 39 weeks. You get:

• 90% of your average weekly earnings (before tax) for the first six weeks
• £139.58 or 90% of your average weekly earnings (whichever is lower) for the next 33 weeks.

Working and child tax credits (£ per year unless stated)

Working Tax Credit

Basic element: £1,960
Couple and lone parent element: £2,010
30-hour element: £810
Disabled worker element: £2,970
Severe disability element: £1,275
Childcare element – maximum eligible cost for one child: £122.50 per week
Childcare element – maximum eligible cost for two or more children: £210 per week

Child Tax Credit

Family element: £545
Child element: £2,780
Disabled child element: £3,140
Severely disabled child element: £1,275

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Your Comments

Can I take 25 % tax free each year from NEST pension? 

No ! Is 25% of  original fund.  Contact Pension Wise if you don't understand your options.

Everyone is producing lots of articles - often based on the latest budget announcements.  But no-one seems to be reminding people about this tax year's new zero rate for savings interest up to £5000 for those on incomes up to £15,600 - Perhaps it is time to do an article on this?
I registered for my interest to be paid gross as my pension drawdown income is £10,600 - now many people will need to be reminded to claim back at the end of the tax year.