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BUDGET

16 MARCH 2016

page 3

PERSONAL TAXATION

Income tax allowances and reliefs

2016/17

2015/16

Personal (basic)

£11,000

£10,600

Personal reduced by £1 for every £2 of net income over

£100,000

£100,000

Transferable tax allowance for married couples/civil partners

£1,100

£1,060

Personal (age) if born before 6/4/38 *

N/A

£10,660

Married couples/civil partners (minimum) at 10% †

£3,220

£3,220

Married couples/civil partners (maximum) at 10% *†

£8,355

£8,355

Blind person’s allowance

£2,290

£2,290

Rent-a-room tax-free income

£7,500

£4,250

Venture capital trust (VCT) at 30%

£200,000

£200,000

Enterprise investment scheme (EIS) at 30%

£1,000,000

£1,000,000

EIS eligible for capital gains tax (CGT) deferral relief

No limit

No limit

Seed EIS (SEIS) at 50%

£100,000

£100,000

SEIS CGT reinvestment relief

50%

50%

Registered pension scheme

• annual allowance

£40,000‡

£80,000

• money purchase annual allowance

£10,000

£20,000

• lifetime allowance

£1,000,000

£1,250,000

* Reduced by £1 for every £2 of income over £27,700, until basic minimum reached.

† Where at least one spouse/civil partner was born before 6/4/35.

‡ 50% taper down to £10,000 if threshold income over £110,000 and adjusted income over £150,000.

Rates

2016/17

2015/16

Starting rate at 0% – on savings income up to

^

£5,000

£5,000

Savings allowance at 0% tax: basic rate taxpayers

£1,000

N/A

• higher rate taxpayers

£500

N/A

• additional rate taxpayers

N/A

N/A

Basic rate of 20% on income up to

£32,000

£31,785

Higher rate of 40% on income up to £150,000 from

£32,001

£31,786

Additional rate of 45% on income over

£150,000

£150,000

Dividend tax credit

N/A

10%

Dividend allowance at 0% tax – all individuals

£5,000

N/A

Tax rate on dividends based on

Dividend

Dividend +

tax credit

• basic rate taxpayers

7.5%

10%

• higher rate taxpayers

32.5%

32.5%

• additional rate taxpayers

38.1%

37.5%

Trusts

• standard rate band generally

£1,000

£1,000

• dividends (rate applicable to trusts)

38.1%

37.5%

• other income (rate applicable to trusts)

45%

45%

Child benefit charge: 1% of benefit per £100 of income between £50,000 and £60,000

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