Understanding the UK tax rates for the 2015/2016 tax year is essential for contractors, small business owners, and individuals to ensure compliance with the tax system. These tables provide key information on income tax allowances, taxable bands, corporation tax rates, and national insurance contributions applicable during this period.
Tax Rates and Allowances
| Description | 2014–15 (£) | 2015–16 (£) | Increase (£) |
|---|---|---|---|
| Income Tax Allowances | |||
| Personal allowance | 10,000 | 10,600 | +600 |
| Capital Gains Tax Annual Exempt Amount | |||
| Individuals etc | 11,000 | 11,100 | +100 |
| Inheritance Tax Threshold | 325,000 | 325,000 | – |
| Pension Schemes | |||
| Annual allowance | 50,000 | 50,000 | – |
| Lifetime allowance | 1,250,000 | 1,000,000 | –250,000 |
Note: From the 2010–11 tax year, the Personal Allowance reduces where income exceeds £100,000—by £1 for every £2 of income above the £100,000 limit. This reduction applies irrespective of age.
Taxable Bands
| Description | 2014–15 (£) | 2015–16 (£) |
|---|---|---|
| Starting Rate | 10% on income up to 2,880 | 0% on income up to 5,000 |
| Basic Rate | 20% on income from 0 to 31,865 | 20% on income from 0 to 31,785 |
| Higher Rate | 40% on income from 31,866 to 150,000 | 40% on income from 31,786 to 150,000 |
| Additional Rate | 50% on income over 150,000 | 50% on income over 150,000 |
The rates available for dividends for the 2014–15 tax year are the 10% ordinary rate, the 32.5% dividend upper rate, and the additional rate of 37.5%.
Corporation Tax Rates
| Corporation Tax Profits | 2014–15 (£) | 2015–16 (£) |
|---|---|---|
| 0 – 300,000 | 20% | 20% |
| 300,001 – 1,500,000 | N/A | N/A |
| Over 1,500,000 | 20% | 20% |
National Insurance Rates
| Description | 2014–15 (£) | 2015–16 (£) |
|---|---|---|
| Primary Threshold | £153 per week | £155 per week |
| Secondary Threshold | £153 per week | £156 per week |
| Employees’ Primary Class 1 Rate | 12% on earnings between primary threshold and upper earnings limit; 2% above upper earnings limit | 12% on earnings between primary threshold and upper earnings limit; 2% above upper earnings limit |
| Employers’ Secondary Class 1 Rate | 13.8% on earnings above secondary threshold | 13.8% on earnings above secondary threshold |
| Class 4 Rate | 9% on profits from £7,956 to £41,865 per year; 2% above £41,865 per year | 9% on profits from £8,060 to £42,385 per year; 2% above £42,385 per year |
| Class 4 Lower Profits Limit | £7,956 per year | £8,060 per year |
| Class 4 Upper Profits Limit | £41,865 per year | £42,385 per year |
While the information in these tables is now historical, it remains useful for understanding past tax systems and for comparing how tax rates have evolved over time. If you’re reviewing past financial records or simply curious about previous tax periods, these tables are a valuable reference.
For more detailed information and additional resources, you can visit HMRC.
If you want to see the UK tax tables for 2014/2015, click here.