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saver

Protect your personal

allowance.

In 2015/16

your personal allowance is

reduced by 50p for every

pound your income is

over £100,000. If you can

reduce your income below

£100,000, e.g. by making

a pension contribution or

charitable gift, you should

benefit from the full

allowance.

£

BUDget

18 March 2015

Personal taxation

continued

Income tax – personal allowance and basic rate band

For 2015/16 the personal allowance will rise from £10,000 to

£10,600 and there will be an £80 reduction in the basic rate band

to £31,785, as previously announced. The personal allowance

will be increased to £10,800 for 2016/17 and £11,000 for 2017/18.

The basic rate limit will be increased to £31,900 for 2016/17 and

£32,300 for 2017/18.

Class 2 national insurance contributions (NICs)

The government intends to abolish Class 2 NICs in the next

parliament and reform Class 4 NICs to introduce a new benefit

test. There will be consultation on the detail and timing of these

reforms later in 2015.

Tax-free childcare

The maximum amount that parents of disabled children will be

able to receive under the new childcare scheme starting in the

autumn will be increased from £2,000 to £4,000 a year for each

disabled child.

Company car benefit

From 2019/20 the scale percentage of the list price of company

cars that are subject to tax will be increased by 3% up to a

maximum of 37% for cars emitting more than 75g/km of CO

2

.

There will be a 3% differential between the 0–50g/km and

51–75g/km bands and between the 51–75g/km and 76–94g/km

bands. The rates for years up to 2018/19 are as previously

announced.

Van benefit charge (VBC)

From 6 April 2016 the main VBC will increase in line with RPI. As

previously announced, lower rates of VBC for zero emission vans

will be extended to 5 April 2020 on a tapered basis.

Fuel benefit charge

From 6 April 2016 the fuel benefit charge multiplier for both cars

and vans will increase in line with RPI.

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