8 JULY 2015
Income tax – personal allowances and basic rate band
The personal allowance for 2016/17 will rise from £10,600 to
£11,000 and the basic rate band will rise by £215 to £32,000.
From 2017/18 the personal allowance will increase to £11,200 and
there will be a further increase in the basic rate band to £32,400.
Once the personal allowance reaches £12,500, it will be uprated
in line with the national minimum wage.
From 6 April 2016 the 10% dividend tax credit will be abolished
and there will be a new dividend tax allowance of £5,000 a
year. New rates of tax on dividend income will apply above the
allowance at 7.5% for basic rate taxpayers, 32.5% for higher rate
taxpayers and 38.1% for additional rate taxpayers. The effect is
to increase the rate of tax on dividends above the new allowance
Anybody who has been resident in the UK for more than 15 of
the past 20 tax years will be deemed to be domiciled in the UK
for all tax purposes including inheritance tax. This will apply from
April 2017 and a technical consultation will be published later
From 6 April 2017, individuals who are born in the UK to parents
who are domiciled here will no longer be able to claim non-
domicile status while they are resident in the UK.
There will be no introduction of a minimum claim period for
the remittance basis charge as a result of other reforms to the
taxation of non-UK domiciled individuals. The government had
previously proposed that non-domiciled individuals would have
to claim the remittance basis for at least three years.
Employment taxes and salary sacrifice
The government will actively monitor the effect on tax receipts of
salary sacrifice schemes that reduce employment taxes.
Make sure you use your
yourself from the new tax