16/17 Tax Rates - Bird Simpson | Accountants, Dundee

16/17 Tax Rates

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Income Tax Rates

Taxable income 16/17 15/16
Starting rate of 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 £0 n/a
Basic rate of 20% on income up to £32,001 £31,785
Maximum tax at basic rate £6,400 £6,357
Higher rate of 40% on income £32,001 £31,786
Tax on first £150,000 £53,600 £53,643
Additional rate on income over £150,000 45% 45%
Dividends for:
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
Rate applicable to trusts: Dividends 38.1% 37.5%
Rate applicable to trusts: Other income 45% 45%
Child Benefit: 
1% of benefit for every £100 of income for the tax year between £50,000 – £60,000 £50,000 – £60,000
* Not available if taxable non-savings income exceeds the starting rate.
Main Personal Allowances and Reliefs
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* £1,100 £1,060
Personal (age) if born before 6/4/38 n/a £10,660
Married couples’/civil partners’ allowance at 10%*
                   (if at least one born before 6/4/35) maximum £8,355 £8,355
                   (if at least one born before 6/4/35) minimum £3,220 £3,220
Blind person’s allowance £2,290 £2,290
Rent-a-room tax-free income £7,500 £4,250
Non-domicile Remittance Basis Charge
Non-domicile Remittance Basis Charge after UK residence in at least:
7 of the last 9 tax years £30,000 £30,000
12 of the last 14 tax years £60,000 £60,000
17 of the last 20 tax years £90,000 £90,000

 

Tax Incentivised Investment

16/17 15/16
Individual Savings Account (ISA) £15,240 £15,240
Junior ISA and Child Trust Fund £4,080 £4,080
Help to Buy ISA (from 1 December 2015)
£1,000 initial and £200 per month
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 deferral relief No limit
Seed enterprise investment scheme (SEIS) at 50% £100,000 £100,000
SEIS CGT reinvestment relief 50% 50%

Corporation Tax

Effective rate Effective rate
to 31/3/17 to 31/3/16
Rate on profits 20% 20%

Car Benefits

Taxable amount based on car’s list price when new.

Fuel: charge varies according to CO2 emissions in grams per kilometre.

CO2 g/km Petrol Diesel
0-50 7% 10%
51–75 11% 14%
76–94 15% 18%
95–99 16% 19%
100–4 17% 20%
105–9 18% 21%
110–14 19% 22%
115–19 20% 23%
120–4 21% 24%
125–9 22% 25%
130–4 23% 26%
135–9 24% 27%
140–4 25% 28%
145–9 26% 29%
150–4 27% 30%
155–9 28% 31%
160–4 29% 32%
165–9 30% 33%
170–4 31% 34%
175–9 32% 35%
180–4 33% 36%
185–9 34% 37%
190–4 35% 37%
195–9 36% 37%
200+ 37% 37%

 

Fuel Benefit 16/17 15/16
Multiply the CO2% charge used for the car benefit by 20% 20%

Vans – For Private Use

16/17 15/16
Zero emission: chargeable amount £634 £630
Other vans: chargeable amount £3,170 £3,150
Fuel: flat charge £598 £594

 

Business Tax-free Mileage Allowance – Own Vehicle

16/17 15/16
Cars first 10,000 miles 45p per mile; thereafter 25p per mile
Qualifying passenger 5p per mile
Motorcycles 24p per mile Bicycles 20p per mile

National Insurance Contributions

Class 1 16/17 15/16
Employee Employer Employee Employer
NICs rate 12% 13.8% 12% 13.8%
No NICs on the first: Under 21 (For 2016/17 – 25 for apprentices) £155 pw £827 pw £155 pw £815 pw
No NICs on the first: Over 21 (For 2016/17 – 25 for apprentices) £155 pw £156 pw £155 pw £156 pw
NICs rate charged up to £827 pw No limit £815 pw No limit
2% NICs on earnings over £827 N/A £815 N/A
Certain married women 5.85% 13.8% 5.85% 13.8%
Contracted-Out Rebate on
N/A
£112–£770 pw
Salary-related scheme N/A N/A 1.4% 3.4%
Employment Allowance
£3,000
£2,000
                    (Payable per business. Not available in 2016/17 if a director is the sole employee.)
Class 1A Employer N/A 13.8% N/A 13.8%
Self-Employed £2.80 pw £145.60 pa £2.80 pw £145.60 pa
Class 2 Flat rate
Small profits threshold
£5,965
pa
£5,965
pa
Class 4 On profits:
£8,060–
£43,000 pa: 9%
£8,060–
£42,385 pa: 9%
Over £43,000
pa: 2%
Over £42,385
pa: 2%
Class 3 Flat rate
£14.10 pw,
£733.20 pa
£14.10 pw,
£733.20 pa
Class 3A if reached state pension age pre 6/4/2016
Amount depending
on age

State Pension

16/
17
15/
16
Weekly Annual Weekly Annual
Single person (State pension age reached before 6/4/2016) £119.30 £6,203.60 £115.95 £6,029.40
Spouse/civil partner (State pension age reached before 6/4/2016) £71.50 £3,718.00 £69.50 £3,614.00
Single tier (State pension age reached after 5/4/2016) £155.65 £8,093.80 N/A N/A

 

Registered Pension

16/17 15/16
Lifetime allowance £1,000,000 £1,250,000
Annual allowance £40,000* £80,000
Annual allowance charge on excess 20%–45% 20%–45%
Max. pension commencement lump sum: 25% of pension benefit value 25% of pension benefit value
Lifetime allowance charge if excess drawn: as cash 55% & as income 25% as cash 55% & as income 25%

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

 

Property Transaction Taxes

Residential property value (on slices of value)

UK excl. Scotland: Stamp Duty Land Tax (SDLT)
% Rate
Scotland: Land & Buildings Transaction Tax (LBTT)
% Rate
Up to £125,000 0 Up to £145,000 0
£125,001–£250,000 2 £145,001–£250,000 2
£250,001–£925,000 5 £250,001–£325,000 5
£925,001–£1,500,000 10 £325,001–£750,000 10
Over £1,500,000 12 Over £750,000 12

Second properties over £40,000 – add 3% to SDLT/LBTT from 1/4/16

UK properties bought by companies etc over £500,000 – 15% on total

Commercial property value (on slices of value) UK excl. Scotland: SDLT
% Rate
Commercial property value (on slices of value) Scotland: LBTT
% Rate
Up to £150,000 0 Up to £150,000 0
£150,001–£250,000 2 £150,001–£350,000 3
Over £250,000 5 Over £350,000 4.5

Stamp Duty & SDRT: Stocks and marketable securities: 0.5%

No charge to stamp duty unless the duty due exceeds £5.

 

Inheritance Tax

16/17 15/16
Nil-rate band* £325,000 £325,000
Rate of tax on excess 40% 40%
Rate if at least 10% of net estate left to charity 36% 36%
Lifetime transfers to and from certain trusts 20% 20%
Overseas domiciled spouse/civil partner exemption £325,000 £325,000

100% relief: businesses, unlisted/AIM companies, certain farmland/buildings.

50% relief: certain other business assets e.g. farmland let pre 1/9/95.

* Up to 100% of the unused portion of a deceased spouse’s/civil partner’s nil-rate band can be claimed on the survivor’s death.

 

Capital Gains Tax

Exemptions 16/17 15/16
Individuals (Up to basic rate limit) 10% 18%
Individuals (Above basic rate limit) 20% 28%
Trusts & Estates 20% 28%
Surcharge for residential property and carried interest 8% 0%
Exemptions
Individuals, estates, etc £11,100 £11,100
Trusts generally £5,550 £5,550 £5,550
Chattels proceeds (restricted to 5⁄3rds proceeds gain exceeding limit) £6,000 £6,000
Entrepreneurs’ Relief 16/17 15/16
10% on lifetime limit of(For trading businesses and companies (minimum 5% employee/officer
shareholding) held for at least one year)
£10,000,000 £10,000,000

Investors’ Relief: 10% on lifetime limit of £10,000,000 for unlisted shares in trading companies newly issued to outsiders (not employees/officers) after 16/3/16 and held for at least three years with disposals after 5/4/19.

 

Main Capital And Other Allowances

Plant & machinery 100% annual investment allowance (1st year):

To 31/12/15
From 1/1/16
£500,000 £200,000

 

Enterprise zone plant & machinery (max €125m per investment project) 100%
Plant & machinery (annual reducing balance) 18%
Patent rights & know-how (annual reducing balance) 25%
Certain long-life assets and integral features of buildings
(annual reducing balance)
8%
Energy and water-efficient equipment 100%
Electric vans 100%
Business premises renovation 100%

 

Motor Cars
CO2 emissions of g/km: 75 or less (For new cars only) 76–130 131 or more
Capital allowance 100% first year 18% pa (Reducing balance) 8% pa (Reducing balance)

 

Research & Development

Capital expenditure 100%

Revenue expenditure (companies) Small/Medium 230% Large 130%

 

Value Added Tax

Standard rate 20%
Reduced rate eg on domestic fuel 5%
Registration level from 1/4/16 £83,000
Deregistration level from 1/4/16 £81,000
Flat rate scheme turnover limit £150,000
Cash and annual accounting schemes turnover limits £1,350,000

 

Dates For Tax Payments

Income Tax, NIC and Capital Gains Tax – Self-assessment
31 January in tax year Normally 50% of previous year’s income tax, (less tax deducted at source) and class 4 NIC
Following 31 July Normally 50% of previous year’s income tax, (less tax deducted at source) and class 4 NIC
Following 31 January Balance of income tax , class 2 and class 4 NIC, and all CGT

Inheritance Tax On death: normally 6 months after month of death
Lifetime transfer 6 April–30 September: 30 April in following year
Lifetime transfer 1 October–5 April: 6 months after month of transfer
Corporation Tax Self-assessment: 9 months and 1 day after end of accounting period

• Payable by instalments where profits are £1.5m or over. Normally payable in 7th, 10th, 13th and 16th months after start of accounting period.
• Growing companies: no instalments where profits are £10m or less and the company was not a large company for the previous year.

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