Tax rates and allowances | KiQi Accountants Stoke-on-Trent

Archived article from 2015. Rates, thresholds and rules may have changed since then. Ask us for the current position before you act on it.

Income tax Personal allowances and reliefs

	2016/17	2015/16	2014/15	2013/14	2012/13	2011/12	2010/11	2009/10
Personal allowance			£	£	£	£	£	£
Aged under 65*	11,000	10,600	10,000	9,440	8,105	7,475	6,475	6,475
Born between 6 April 1938 and 5 April 1948	11,000	10,600	10,500	10,500	-	-	-	-
Aged 65–74		-	-	-	10,500	9,940	9,490	9,490
Aged 75 & over		-	-	-	10,660	10,090	9,640	9,640
Born before 6 April 1938	11,000	10,660	10,660	10,660
Blind person's allowance		2,290	2,230	2,160	2,100	1,980	1,890	1,890
Transferable personal allowance (to spouse)**		1,060	-	-	-	-	-	-
Married couples allowance (MCA)
75 and older Max Min		8,355 3,220	8,165 3,140	7,915	7.705	7,295	6,965	6,965
Age allowance limit MCA reduced by £1 for every £2 exceeding limit		27,700	27,000	26,100	25,400	24'000	22,900	22,900
Rent a room relief	7,500	4,250	4,250	4,250	4,250	4,250	4,250	4,250

*Personal allowance restriction from 2010/11 on The personal allowance is restricted by £1 for every £2 of an individual's adjusted net income above £100,000.

** Tranferable allowance: a spouse or civil partner who is not liable to income tax above the basic rate may transfer £1,060 of their unused personal allowance to their spouse/civil partner, provided that the recipient of the transfer is not liable to income tax above the basic rate. Taxpayers have 4 years in which to make the election.

Income tax rates

Rate	%	2016/17	2015/16	2014/15	2013/14	2012/13	2011/12	2010/11	2009/10	2008/09
Basic*	20%	£0 -£32,000	£0 - £31,785	£0 to £31,865	£0 to £32,010	£0 to £34,370	£0 to £35,000	£0 to £37,400	£0 to £37,400	£0 to 34,600
Higher	40%	£32,000 to £150,000	£31,786 to £150,000	£31,866 to £150,000	£32,011 to £150,000	£34,370 to £150,000	£35,001 to £150,000	£37,401 to £150,000	37,401 and above	34,601 and above
Top	45%	£150,000 +	£150,000 +	£150,000 +	£150,000 +	-	-	-	n/a	n/a
Top	50%		-	-	-	£150,000 +	£150,000 +	£150,000 +	n/a	n/a

*Starting rate band:

a starting rate applies to savings income up to:

£5,000 2015/16 - rate 0%
£2,880 2014/15 - rate 10%
£2,790 2013/14 " "
£2,710 2012/13 " "
£2,560 2011/12 " "
£2,440 2010/11 " "
£2,320 2008/09 to 2009/10 " "

This band is not available if taxable non-savings income also exceeds this band. See Tax on interest for worked examples.

Note restriction on personal allowances when income is in excess of £100,000 from 2010/11 on.

Child benefit claimants

Commencing on 7 January 2013 the High Income Child Benefit Tax Charge provisions will claw back Child Benefit payments when a claimant or their partner’s income exceeds £50,000.

Tax rate & effective tax rate on dividends

Rate	2013/14 to 2015/16	2012/13	2011/12	2010/11	2009/10	2008/09
Top tax rate	45%	50%	50%	50%	40%	40%
Dividend rate	37.5%	42.50%	42.50%	42.5%	32.5%	32.5%
Effective rate*	30.55%	36.11%	36.11%	36.11%	25%	25%
Higher tax rate	40%	40%	40%	40%	-	-
Dividend rate	32.5%	32.5%	32.5%	32.5%
Effective rate*	25%	25%	25%	25%

* For example: if an individual who is a top rate tax payer receives a dividend of £20,000 in 2013/14 (dividends are paid net of 10% tax), he will face a tax liability of £6,111 on the net dividend.

Special rates for trustees income

Rate	2013/14 to 2015/16	2012/13
Standard rate on first £1,000 of income which would otherwise be taxed at the special rate for trustees	Up to 20% depending on type of income	Up to 20% depending on type of income
Trust rate	45%	50%
Dividend trust rate	37.5%	42.5%

Pensions - higher rate restrictions

Contribution limits	From 2014/15 on	2011/12 to 2013/14	To 2010/11
Annual allowance	£40,000	£50,000	£215,000
Lifetime allowance	£1.25 million	£1.5 million	£1.8 million