2015 rates and allowances

Published: 08 Mar 2015

Updated: 17 Mar 2016

The following is a list of many of the main tax rates for 2014-15 which altered in the following tax year. For up to date rates and supporting notes,please consult the tax rates menu.

Basic State Pension

	2014-15		2013-14
	Weekly	Annual	Weekly	Annual
Single person	£113.10	£5,881.20	£100.15	£5,727.80
Spouse's/civil partner's	£67.80	£3,525.60	£66.00	£3,432.00
Total married person	£180.90	£9,406.80	£176.15	£9,159.80
Pension credit - standard minimum guarantee
Single	£148.35	£7,714.20	£145.60	£7,560.80
Couple	£226.50	£11,778	£222.05	£11,645.60

Corporation tax

Financial year to	31 March 2015	31 March 2014
First £300,000	20%	20%
Next £1,200,000	21.25%	23.75%
On profits over £1,500,000	21%	23%
Tax credit on dividends	10%	10%
Marginal relief fraction	1/400	3/400

Capital gains tax

	2014-15	2013-14
Standard rate	18%	18%
Higher rate	28%	28%
Entrepreneurs' relief - effective rate	10%	10%
Entrepreneurs' relief	£10 mil.	£10 mil.
Annual exemption
Individual	£11,000	£10,900
settlement(s) (spread over total number)	£5,500	£5,450
Chattels exemption
(proceeds per item or set)	£6,000	£6,000
Marginal relief	5/3 excess over £6,000	5/3 Excess over £6,000

Individual savings account

Individual savings accounts (ISAs)	From 1 July 2014	From 6 April 2014	2013-14
Overall investment limit	£15,000	£11,880	£11,520
Including cash maximum of	N/a	£5,940	£5,760
Junior ISA	£4,000	£3,840	£3,720

Stamp duty land tax

Residential property	Up to 3 December 2014	2013-14
Up to £125,000	Zero	Zero
Over £125,000 to £250,000	1%	1%
Over £250,000 to £500,000	3%	3%
Over £500,000 (companies)	15%	n/a
Over £500,000 to £1 million	4%	4%
Over £1 million to £2 million	5%	5%
Over £2 million (individuals)	7%	7%
Over £2 million (companies)	n/a	15%

The 7% and 15% rates were introduced for property transactions from 22 March 2012. The lower threshold for companies took effect from 20 March 2014, after the 2014 Budget announcement.

Stamp duty land tax (SDLT) is charged at a fixed percentage on consideration for the transfer of land. There is no stamp duty where the transaction is a gift, a transaction on divorce, or certain variations of a will.

From 21 March 2012, UK property acquired by companies and similar corporate bodies, regardless of where the company is resident, are taxed at a higher rate of SDLT.

Advisory fuel rates

From 1 December 2013

	Rates per mile
	£	£	£
Engine capacity	Petrol	gas	diesel
Less than 1,400 cc	0.14	0.09	0.00
1401 to 2,000 cc	0.16	0.11	0.00
More than 2,000 cc	0.24	0.16	0.00
1600cc or less	0.00	0.00	0.12
1601cc to 2,000 cc	0.00	0.00	0.14
Over 2,000 cc	0.00	0.00	0.17

National Insurance Contributions on Employment

Thresholds for Class 1 National Insurance Contributions (NICs)

	2014-15			2013-14
Thresholds	Annual	Monthly	Weekly	Annual	Monthly	Weekly
Lower earnings limit	£5,772	£481	£111	£5,668	£473	;£109
Primary earnings threshold	£7,956	£663	£153	£7,755	£646	£149
Secondary earnings threshold	£7,956	£663	£153	£7,696	£641	£148
Upper accruals point	£40,040	£3,337	£770	£40,040	£3,337	£770
Upper earnings limit	£41,865	£3,489	£805	£41,450	£3,454	£797

Class 1 NIC rate on earnings

	2014-15		2013-14
	Employee	Employer	Employee	Employer
Between primary threshold and upper earnings limit	12%	13.8%	12%	13.8%
Above upper earnings limit	2%	13.8%	2%	13.8%
Contracted out rebate	1.4%	3.4%	1.4%	3.4%

Class 1(A) NICs

	2014-15	2013-14
Rate	13.8%	13.8%

National insurance on Self-employment

Class 2 NICs

	2014-15		2013-14
	Weekly	Yearly	Weekly	Yearly
Flat rate	£2.75	£143	£2.70	£140.40
Small earnings exception limit		£5,885		£5,752

Class 4 NICs

	2014-15		2013-14
	Profit band	Rate	Profit band	Rate
Between lower profits and upper profits limit	£7,956 to £41,865	9%	£7,755 to £41,450	9%
Above upper profits limit		2%		2%

Class 3 NICs

	2014-15		2013-14
	Weekly	Yearly	Weekly	Yearly
Flat rate	£13.90	£722.80	£13.55	£704.60

Rates of income tax

Rate	2014-15	2013-14
Starting rate: 10%	£0 to £2,880	£0 to £2,790
Basic rate: 20%	£0 to £31,865	£0 to £32,010
Higher rate: 40%	£31,865 to £150,000	£32,011 to £150,000
Top rate: 45%	Over £150,000	Over £150,000

Rates of income tax on dividends

Rate	2014-15	2013-14
Basic rate: 0%	£0 to £31,865	£0 to £32,010
Higher rate: 25%	£31,865 to £150,000	£32,011 to £150,000
Top rate: 30.5%	Over £150,000	Over £150,000

Personal allowances

Income Tax allowances	2014-15	2013-14
Personal Allowance (basic)	£10,000	£9,440
Income limit for Personal Allowance	£100,000	£100,000
Personal Allowance for people born between 6 April 1938 and 5 April 1948	£10,500	£10,500
Personal Allowance for people before 6 April 1938	£10,660	£10,660
Income limit for the allowances for those born before 6 April 1948	£27,000	£26,100
Married Couple's Allowance (born before 6th April 1935)	£8,165	£7,915
Minimum amount of Married Couple's Allowance	£3,140	£3,040
Blind Person's Allowance	£2,230	£2,160

Enterprise investment scheme and Venture capital trusts

Income tax relief limits effective 2014/15 are as follows:

	EIS	SEED	VCT
	£	£	£
Annual Investment limits	£1,000,000	200,000	£500,000
Income tax relief rates	30%	50%	30%
Are dividends taxable?	Yes	Yes	No
Capital gains tax exempt	Yes	Yes	Yes
Minimum holding period to prevent capital gains tax clawback	3 years	3 years	N/a
Minimum holding period to prevent income tax clawback	3 years	3 years	5 years
Income tax relief for capital losses	Yes	Yes	No
Business property relief for inheritance tax purposes	Yes	Yes	No

Pension rates

	2014-15	2013-14
Lifetime Allowance	£1,250,000	£1,500,000
Annual Allowance	£40,000	£50,000
Lifetime Allowance Charge	55% on excess paid as a lump sum. 25% on excess not taken as a lump sum.	55% on excess paid as a lump sum. 25% on excess not taken as a lump sum.
Annual Allowance Charge	20%-45%, depending on other income	20%-45%, depending on other income
Maximum pension contribution with tax relief	100% of relevant UK earnings or £3,600, (subject to the annual allowance)	100% of relevant UK earnings or £3,600, (subject to the annual allowance)

Car Benefit Charge 2014-15

Co2 Emissions g/km	Petrol Engine %	Diesel Engines %
75 or less	5	8
76-94	11	14
95-99	12	15
100-104	13	16
105-109	14	17
110-114	15	18
115-119	16	19
120-124	17	20
125-129	18	21
130-134	19	22
135-139	20	23
140-144	21	24
145-149	22	25
150-154	23	26
155-159	24	27
160-164	25	28
165-169	26	29
170-174	27	30
175-179	28	31
180-184	29	32
185-189	30	33
190-194	31	34
195-199	32	35
200-204	33	35
205-209	34	35
210 g/kg and above	35	35

Van benefit charge

	2014-15	2013-14
Van benefit charge	£3,090	£3,000

Fuel Benefit charge

	2014-15	2013-14
Car Fuel Benefit Charge Multiplier	£21,700	£21,100
Van Fuel Benefit Charge Multiplier	£564	£564

Proposals for 2015-16

The lowest percentage is expected to increase from 0% to 9% from 2015-16. This measure will create a taxable benefit for the provision of electric cars and other vehicles with zero CO2 emissions. Preferential rates for cars with co2 emissions below 75 g/km are also set to be abolished.

Rate of the annual investment allowance

	From 1 April 2014 to 31 December 2015	2013/14
Annual investment allowance	100%	100%
Main rate on general pool	18%	18%
Special rate pool	8%	8%
Know-how and patents	25%	25%

Annual investment allowance limit

From 1 April 2014 to 31 December 2015

2013/14

Annual investment allowance

£500,000

£250,000

The annual investment allowance was due to increase to £250,000 for a temporary period of two years from 1 January 2013. The increase will take effect from 6 April 2014 (rather than 1 April) for unincorporated businesses. The AIA will reduce to £25,000 from 1 January 2016.

The balance of capital expenditure which is not relieved by the annual investment allowance is not relieved by the AIA is added to the main pool and tax relief is provided at the above rates. The balance of certain expenditure, such as on features integral to a building, are added to a special rate pool.

Capital allowances for cars

	2014-15	2013/14
CO2 emissions below 95 g/km	100%	100%
CO2 emissions between 95 g/km and 130 g/km	18%	18%
CO2 emissions over 130 g/km	8%	8%

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