Tax Rates, Allowances & Limits 2015/16


It’s the beginning of a new tax year and so it means all change in regard to personal allowances, limits and tax rates. Well fear not, here at Simply we aim to keep things simple whilst keeping you up to date!

Below, you’ll find an outline of all the new limits, allowances and tax bands to get you up to speed for the new tax year.

Tax Rates, Allowances and Limits 2015/16

Personal Allowance: £10,600 (the amount that you can earn before you pay tax)

Income Tax (gross salary)

Basic rate: £10,601 – £42,385 – taxable at 20%
Higher rate: £42,386 – £160,600 – taxable at 40%
Additional rate: More than £160,600 – taxable at 45%

Married Couple’s Allowance: £8,355 (for those currently aged 77 and above)


Annual Allowance: £40,000 (you can carry forward unused allowances for the previous 3 tax years)
Lifetime Allowance: £1.25 million
State Pension: £115.95 (for those reaching state retirement age before April 2016)
Pension Guarantee Credit weekly income threshold: £151.20 (single), £230.85 (couples)


Isa Allowance: £15,240. (cash and/or invested in stocks and shares)
Junior Nisa Allowance: £4,080
Starting rate for savings income: 0% up to £5,000 for those with annual income of less than £15,600.

Capital Gains Tax (CGT)

Annual Exempt Amount: £11,100
Standard rate of CGT: 18%
Higher rate (HRT payers): 28%
Entrepreneurs: 10%

Inheritance Tax

Inheritance Tax threshold: £325,000

National Minimum Wage

Age 21 & above: £6.50 (rising to £6.70 from 1 October 2015)
Age 18-20: £5.13 (£5.30)
Age 16-17: £3.79 (£3.87)
Apprentice: £2.73 (£3.30)

Statutory Sick Pay

For employees earning at least £109p/w (sick for 4 or more consecutive days): £88.45

National Insurance

Class 1 rate: 12% per week on weekly earnings between £155 and £815.  2% on weekly earnings over £815.
Married women’s reduced rate between primary threshold and upper earnings limit: 5.85%
Class 2 small earnings exception (per year): £5,965
Class 2 rate: £2.80
Class 4 small earnings exception (per year): £8,060
Class 4 rate: 9% on profits between £8,060 and £42,385
2% on profits over £42,385

Statutory Maternity Pay (SMP) (Paid for up to 39 weeks)

90% of average weekly earnings (before tax) for the first six weeks then
£139.58 or 90% of average weekly earnings (whichever is lower) for the next 33 weeks.

Working Tax Credit (per year unless stated otherwise)

Basic element: £1,960
Couple and lone parent element: £2,010
30-hour element: £810
Disabled worker element: £2,970
Severe disability element: £1,275
Childcare element – maximum eligible cost for 1 child: £122.50 per week
Childcare element – maximum eligible cost for 2 or more children:£210 per week

Child Tax Credit

Family element: £545
Child element: £2,780
Disabled child element: £3,140
Severely disabled child element: £1,275


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