Autumn Statement 2015 Tax Rates

December 12th, 2013  |  Published in Uncategorized

Personal Allowances

The standard personal allowance will increase to £10,000 from 6 April 2014, but the age allowances for those born before 6 April 1948 are frozen.

Allowances for 2014/15 are…

Personal allowance (born after 5 April 1948): £10,000
Personal allowance (born between 6 April 1938 and 5 April 1948): £10,500
Personal allowance (born before 6 April 1938): £10,660
Minimum married couples allowance*: £3,140
Maximum married couples allowance*: £8,165
Blind person’s allowance: £2,230
Income limit for allowances for age related allowances: £27,000
Income limit for standard allowances: £100,000

* given where one partner was born before 6 /4/1935, as 10% reduction in tax due.

Transferable Married Couples Allowance
From 6 April 2015 married couples and civil partners will be able to transfer up to £1,000 of their personal allowance to their spouse. This amount will increase if the total personal allowance increases year on year. However, the transfer can only take effect if both members of the couple are basic rate taxpayers or pay no income tax for the year.

Tax Rates and Thresholds
The income tax bands for 2014/15 are:

Savings rate* (10%) – 0 to £2,880
Basic rate (20%) – 0 to £31,865
Higher rate (40%) – £31,866 to £150,000
Additional rate (45%) – over £150,000

*The savings rate of 10% only applies if the individual’s net non-savings income does not exceed the savings rate limit. The higher rate and basic rate thresholds can be increased by paying personal pension contributions or gift aid donations.

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