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The 2015-16 tax year.

Thursday 16th April 2015

Headline tax rates and thresholds for the tax year 6 April 2015 to 5 April 2016.

Corporation Tax

The small profits rate paid by contractor companies stays at 20%.

Value Added Tax

The standard rate of VAT remains at 20%.

Dividend Tax

The basic, higher tax rate and additional rate on dividends remain unchanged:

Basic rate of 10%

Higher rate of 32.5%

Additional rate of 37.5%

Although the above are the official rate due to the tax credit of 10% on dividends the real rates of tax for dividends are:

Basic rate of 0%

Higher rate of 25%

Additional rate of 30.6%

Income Tax

The Personal Allowance rises by to £10,600.

For incomes of £100,000, the value of the personal allowance is still reduced by £1 for every £2 over the threshold.

Income Tax - Taxable Bands

The basic 20% rate of income tax applies between £10,600 and £42,385

The higher 40% rate applies between £42,385 and £150,000.

The additional 45% rate applies on income above £150,000.

National Insurance (NICs)

The employers' NIC rate stays at 13.8%. The employee's NIC rate stays at 12%.

Approved Mileage Allowance Payments (AMAPs)

The standard car rate stays at 45p for the first 10,000 miles, and 25p thereafter.

Pensions Savings - Tax Relief

The lifetime allowance is currently at £1.25m.

The annual allowance for personal contributions is currently at £40,000.

Capital Gains Tax

The annual allowance is rising by £100 to £11,100

The standard CGT rate for individuals remains at 18% (basic rate), and 28% (higher rate).

The lifetime allowance for Entrepreneurs' Relief is £10m.

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