Tax Rates and Allowances 2016/2017
Tax Free Personal Allowance
the amount of gross income you can earn before you are liable to paying income tax
Personal Allowance (Born after 5 April 1948) £11,000
Personal Allowance (Born between 6 April 1938 and 5 April 1948) £11,000
Personal Allowance (Born before 6 April 1938) £11,000
Income Limits For Tapering
the amount of gross income you can have before your personal allowance is reduced
personal allowance is reduced by £1 for every £2 over the limit
* personal allowance will only be reduced to the basic personal allowance unless income is over £100,000
Income Limit (Born after 5 April 1948) £100,000
Income Limit (Born before 6 April 1948) * £27,700
Married Couples Allowance
available to a qualifying individual born before 6th April 1935 aged 75 or over
10% of the amount below is allowed to be deducted from the tax bill of a qualifying individual
personal allowance is reduced by £1 for every £2 over the income limits for tapering - up to the minimum married couple's allowance level
Married Couples Allowance £8,355
Minimum Married Couples Allowance £3,220
Blind Person's Allowance
Additional Personal Allowance £2,290
Income Tax Bands and Percentages
*10% starting rate is for savings income only - if your non-savings income is above the starting band level, the 10% rate will NOT apply and the basic rate percentage will be used instead.
Band Limits Percentage
Starting Rate (Savings only *) £0 - £5,000 0%*
Basic Rate £0 - £32,000 20%
Higher Rate £32,001 - £150,000 40%
Additional/Top Rate Over £150,000 45%
Dividend Tax Bands and Percentages
Band Limits Percentage
Ordinary Rate £0 - £32,000 7.5%
Upper Rate £32,001 - £150,000 32.5%
Additional/Top Rate Over £150,000 38.1%
National Insurance Contributions
National Insurance Rates and Allowances
Find your classification by looking up your NIC letter on your payslip/return
Shared Banding For All NICs
Lower Earnings Limit (Weekly) £112
Upper Accrual Point (Weekly) £770
Upper Earnings Limit (Weekly) £815
Primary Threshold (Weekly) £155
Secondary Threshold (Weekly) £156
Rates for Class 1 NICs
Between Primary Threshold and Upper Earnings Limit 12%
Above Upper Earnings Limit 2.0%
Employers' Rate Above Secondary Threshold 13.8%
Class 1A Rate On Employer Provided Benefits 13.8%
Employees' Contracted Out Rebate 1.4%
Employers' Contracted Out Rebate 3.4%
Married Women's Reduced Rate Between Primary and Upper Earnings 5.85%
Married Women's Reduced Rate Above Upper Earnings 2%
Self Employed Class 2 and Class 4 NICs
Class 4 Lower Profits Limit (Annual) £8,060
Class 4 Upper Profits Limit (Annual) £43,000
Class 4 Rate Between Lower and Upper Profits 9%
Class 4 Rate Above Upper Profits 2%
Class 2 Earnings Exception Limit £5,965
Class 2 Weekly Amount £2.80
Class 2 Weekly Amount (Share Fisherman) £3.45
Class 2 Weekly Amount (Volunteer Development Workers) £5.60
Voluntary Class 3 NICs
Weekly rate £14.10
Corporation Tax - Calculate Corporation Tax
Corporation Tax Rates and Limits
Small Profits Rate n/a
Main Rate 20%
Small Profits Limit n/a
Marginal Relief Lower Limit n/a
Marginal Relief Upper Limit n/a
Marginal Relief Fraction n/a
Capital Gains Tax - Calculate Capital Gains Tax
Capital Gains Tax Rates and Annual Exempt Amounts
Annual Exempt Amount
Individuals, Personal Reps and Trustees for Disable People £11,100
Other Trustees £5,550
CGT Tax Rates
Individuals - Basic Rate Taxpayer 18%
Individuals - Higher Rate Taxpayer 28%
Personal Representative of a Deceased Individual 28%
Gains Qualifying for Entrepreneurs' Relief 10%
All the latest tax rates and allowances, including income tax, CGT, NIC and much more
