Tax facts

Car and fuel scale beneÀts Taxable amount based on car’s list price when new. Charge varies according to CO2 emissions in grams per kilometre. CO2 emissions g/km 0–50 51–75 76–94 95–99 100–104 105–109 110–114 115–119 120–124 125–129 130–134 135–139 140–144 145–149

Petrol % 5 9 13 14 15 16 17 18 19 20 21 22 23 24

Diesel % 8 12 16 17 18 19 20 21 22 23 24 25 26 27

CO2 emissions g/km

Petrol %

Diesel %

25 26 27 28 29 30 31 32 33 34 35 36 37

28 29 30 31 32 33 34 35 36 37 37 37 37

150–154 155–159 160–164 165–169 170–174 175–179 180–184 185–189 190–194 195–199 200–204 205–209 210 & over

Fuel benefit (taxable amount for private use)

Multiply the CO2% used for car benefit by

£22,100

Vans (for private use) Zero emission: chargeable amount Other vans: chargeable amount Fuel: flat charge

2015/16

2014/15

£630 £3,150 £594

Nil £3,090 £581

Tax-free mileage allowance – own vehicle Cars first 10,000 business miles 45p per mile; thereafter 25p per mile Motorcycles 24p per business mile Bicycles 20p per business mile Qualifying passenger 5p per business mile

Main capital and other allowances Plant and machinery 100% annual investment allowance (first year): To 31 December 2015 £500,000 From 1 January 2016 £200,000 Enterprise zone plant and machinery (Max €125m per investment project) 100% Plant and machinery (annual reducing balance) 18% Patent rights and know-how (annual reducing balance) 25% Certain long-life assets, integral features of buildings (annual reducing balance) 8% Energy and water-efficient equipment 100% Electric vans 100% Business premises renovations 100%

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Tax facts Tax rates and allowances 2015/2016

@GrantThorntonUK

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Motor cars

CO2 emissions of g/km: Capital allowance:

75 or less* 100% first year

*Only for new cars.

76–130 18%†

131 or more 8%†

†Reducing balance.

Research and development

Capital expenditure Revenue expenditure © Copyright 8 July 2015 For information only.

– Small/Medium sized companies – Large companies

100% 230% 130%

Subject to Finance (No.2) Act 2015 Always seek professional advice before acting.

© 2015 Grant Thornton UK LLP. All rights reserved. ¶*UDQW7KRUQWRQ·UHIHUVWRWKHEUDQGXQGHUZKLFKWKH*UDQW7KRUQWRQPHPEHUILUPVSURYLGHDVVXUDQFH WD[DQGDGYLVRU\VHUYLFHVWRWKHLUFOLHQWVDQGRUUHIHUVWRRQHRUPRUHPHPEHUILUPVDVWKHFRQWH[W UHTXLUHV*UDQW7KRUQWRQ8.//3LVDPHPEHUILUPRI*UDQW7KRUQWRQ,QWHUQDWLRQDO/WG*7,/ *7,/DQG WKHPHPEHUILUPVDUHQRWDZRUOGZLGHSDUWQHUVKLS*7,/DQGHDFKPHPEHUILUPLVDVHSDUDWHOHJDO HQWLW\6HUYLFHVDUHGHOLYHUHGE\WKHPHPEHUILUPV*7,/GRHVQRWSURYLGHVHUYLFHVWRFOLHQWV*7,/ DQGLWVPHPEHUILUPVDUHQRWDJHQWVRIDQGGRQRWREOLJDWHRQHDQRWKHUDQGDUHQRWOLDEOHIRURQH another’s acts or omissions. This publication has been prepared only as a guide. No responsibility can EHDFFHSWHGE\XVIRUORVVRFFDVLRQHGWRDQ\SHUVRQDFWLQJRUUHIUDLQLQJIURPDFWLQJDVDUHVXOWRIDQ\ material in this publication. grant-thornton.co.uk

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Income tax

National insurance contributions

Rates

2015/16

2014/15

Starting rate on savings income up to* Basic rate of 20% on income up to Maximum tax at basic rate Higher rate of 40% on income

0% £5,000 £31,785 £6,357 £31,786– £150,000 £53,643 £150,000 10% 32.5% 37.5% £1,000 37.5% 45%

10% £2,880 £31,865 £6,373 £31,866– £150,000 £53,627 £150,000 10% 32.5% 37.5% £1,000 37.5% 45%

Tax on first £150,000 Additional rate of 45% on income over Dividends for: Basic rate taxpayers Higher rate taxpayers Additional rate taxpayers Trusts: Standard rate band generally Rate applicable to trusts – Dividends – Other income

*Not available if taxable non-savings income exceeds the starting rate band.

1% of benefit for each £100 of income between £50,000–£60,000. Personal (basic) Personal reduced if net income exceeds* Transferable tax allowance for married couples Personal (age) if born between 6/4/38 and 5/4/48 Personal (age) if born before 6 April 1938 Personal (age) reduced if net income exceeds* Married couple’s allowance*† – Maximum – Minimum Blind person’s allowance Rent-a-room tax-free income Venture Capital Trust (VCT) at 30% Enterprise Investment Scheme (EIS) at 30% EIS eligible for CGT deferral relief Seed EIS (SEIS) at 50% SEIS CGT reinvestment relief

2014/15

£10,600 £100,000 £1,060 n/a £10,660 £27,700 £8,355 £3,220 £2,290 £4,250 £200,000 £1,000,000 No limit £100,000 50%

£10,000 £100,000 n/a £10,500 £10,660 £27,000 £8,165 £3,140 £2,230 £4,250 £200,000 £1,000,000 No limit £100,000 50%

Non-domicile remittance basis charge after UK residence in at least:

£30,000 £60,000 £90,000

£155 £155 12% £815 5.85%

Contracted-out rebate on

£112–£770 pw (salary related scheme) Limits and thresholds

Lower earnings limit Primary earnings threshold Secondary earnings threshold Upper accrual point Upper earnings limit and upper secondary earnings threshold (under 21)

Weekly

£30,000 £50,000 n/a

Registered pensions

£815 £156 13.8% n/a 13.8%

£112 £155 £156 £770 £815

1.4%

3.4%

Monthly

Annual

£486 £672 £676 £3,337

£5,824 £8,060 £8,112 £40,040

£3,532

£42,385

£2.80 pw

£145.60 pa

13.8% 13.8%

Self-employed Small profits threshold Class 4 (Self-employed) On profits

Employer

£2,000

Employment allowance per business

£5,965 pa £8,060–£42,385 pa Over £42,385 pa

Class 3 (voluntary) Flat rate

£14.10 pw

Class 3A (voluntary) (from 12 October 2015)

Amount depending on age

9% 2% £733.20 pa

Basic state pension 2015/16

Weekly

Single person Spouse/civil partner Pension credit (standard minimum guarantee)

Single Couple

Annual

£115.95 £69.50

£6,029.40 £3,614.00

£151.20 £230.85

£7,862.40 £12,004.20

Stamp duty land tax & Land and buildings transaction tax Residential property value UK (excl. Scotland) On slices

†Relief at 10% if at least one of the couple was born before 6 April 1935.

7 of the last 9 tax years 12 of the last 14 tax years 17 of the last 20 tax years

NICs rate 2% NICs on earnings over Certain married women

– Under 21 – 21 and over

Class 2 (self-employed) Flat rate

2015/16

*£1 reduction for every £2 of additional income over the income threshold.

No NICs on the first

Class 1A (employer) On most taxable benefits in kind Class 1B (employer) On PAYE settlement agreements

Child beneÀt charge Main personal allowances and reliefs

Tax efÀcient savings

Class 1: Employed not contracted-out of state second pension (S2P) 2015/16 Employee

Up to £125,000 £125,001–£250,000 £250,001–£925,000 £925,001–£1,500,000 Over £1,500,000

Rate %

0 2 5 10 12

Scotland On slices

Up to £145,000 £145,001–£250,000 £250,001–£325,000 £325,001–£750,000 Over £750,000

Rate %

0 2 5 10 12

Note: 15% on total value of all UK properties worth over £500,000 if purchased by companies and certain other non-natural entities.

2015/16

2014/15

Lifetime allowance £1,250,000 £1,250,000 Annual allowance £40,000 £40,000 Money purchase annual allowance £10,000 n/a Annual allowance charge on excess 20%–45% 20%–45% Max. pension commencement lump sum 25% of pension benefit value Lifetime allowance charge if excess drawn as cash 55% / income 25% Maximum relievable personal contribution capped by the annual allowance and 100% of relevant UK earnings or £3,600 if greater.

Commercial property value UK (excl. Scotland) On total

Up to £150,000 £150,001–£250,000 £250,001–£500,000 Over £500,000

Rate %

0 1 3 4

Scotland On slices

Up to £150,000 £150,001–£350,000 Over £350,000

Stamp Duty/Stamp duty reserve tax: Stocks and marketable securities

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

Rate %

0 3 4.5

0.5%

Limits

2015/16

Individual Savings Account (ISA) Junior ISA and Child Trust Fund

£15,240 £4,080

Capital gains tax Tax rates (individuals)

2015/16

2014/15

18% 28% 28%

18% 28% 28%

Individuals, estates, etc £11,100 Trusts generally £5,550 Chattels exemptions: proceeds up to £6,000 5 Maximum chargeable gains /3 rds of excess proceeds over limit.

£11,000 £5,500 £6,000

Up to basic rate limit Above basic rate limit Tax rates (trusts and estates) Exemptions

Entrepreneurs’ relief

Gains taxed at 10% up to lifetime limit of £10,000,000 £10,000,000 For trading businesses and companies (minimum 5% employee/director shareholding) held for one year or more.

Inheritance tax 2015/16

2014/15

Nil-rate band* £325,000 £325,000 Rate of tax on excess 40%† 40%† Lifetime transfers to and from certain trusts 20% 20% Exemption for non-UK domiciled spouse/civil partner £325,000 £325,000 100% relief: certain businesses, unlisted and AIM companies, farmland/buildings 50% relief: certain other business assets e.g. farmland let pre 1 September 1995 Annual exempt gifts of: £3,000 per donor £250 per donee *Up to 100% of the unused proportion of a deceased spouse’s/civil partner’s nil-rate band can be claimed on the survivor’s death. †36% where at least 10% of net estate left to charity.

Tax charge on gifts within seven years of death

Years before death % of death tax charge

0–3 100

3–4 80

4–5 60

5–6 40

6–7 20

Corporation tax Effective rate on proÀts to

£0–£300,000 £300,001–£1,500,000 £1,500,001 and over

31 March 2016

31 March 2015

20% 20% 20%

20% 21.25% 21%

VAT Standard rate 20% Reduced rate e.g. on domestic fuel Registration level from 1 April 2015 Deregistration level from 1 April 2015 Flat rate scheme turnover limit Cash and annual accounting schemes turnover limit

5% £82,000 £80,000 £150,000 £1,350,000