Autumn Statement 2014

Main income tax rates and allowances

Main income tax allowances
 2014/15 2015/16
Personal allowance £10,000 £10,600
Personal allowance reduced if adjusted net income exceeds* £100,000 £100,000
Transferable tax allowance for married couples/civil partners where there is no entitlement to married couple's allowance and where neither spouse/civil partner pays more than basic rate tax N/A £1,060
Blind person's allowance £2,230 £2,290
Child benefit charge: 1% of benefit for each £100 of adjusted net income between £50,000-£60,000
Age-related allowances    
Personal if born between 6/4/38 and 5/4/48 £10,500 N/A
Personal if born before 6/4/38 £10,660 £10,660
Personal if born before 6/4/48 (6/4/38 for 2015/16) reduced if adjusted net income exceeds*
 £27,000
 £27,700
Married couples/civil partners at 10% - minimum** £3,140 £3,220
Married couples/civil partners at 10% - maximum** £8,165 £8,355
     
* £1 reduction for every £2 of additional income over the income threshold.

** Where at least one spouse/civil partner was born before 6 April 1935.
Income tax rates and bands
 2014/15 2015/16
10% starting rate on savings income up to* £2,880 N/A
0% starting rate on savings income up to* N/A £5,000
Basic rate of 20% on income up to
 £31,865 £31,785
Maximum tax at basic rate
 £6,373 £6,357
Higher rate of 40% on income between
 £31,866-
£150,000		 £31,786-
£150,000
Tax on first £150,000 £53,627 £53,643
Additional rate on income over £150,000 45% 45%
Dividends: ordinary rate
 10% 10%
Dividends: upper rate
 32.5% 32.5%
Dividends: additional rate
 37.5% 37.5%
Discretionary and accumulation trusts


Up to the first £1,000 of gross income is generally taxed at the standard rate as appropriate
 10%/20%
 10%/20%
Non-dividend income above £1,000 taxed at 45% 45%
Dividend income above £1,000 taxed at 37.5% 37.5%
     
* Not available if taxable non-savings income exceeds the starting rate band.

 

 

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