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This Is A Custom Widget

This Sliding Bar can be switched on or off in theme options, and can take any widget you throw at it or even fill it with your custom HTML Code. Its perfect for grabbing the attention of your viewers. Choose between 1, 2, 3 or 4 columns, set the background color, widget divider color, activate transparency, a top border or fully disable it on desktop and mobile.
Income Tax 2017-05-19T12:11:59+00:00

Income Tax

Income tax rates 1 2016/17 2015/16
Starting rate limit (savings income) 2 *£5,000 *£5,000
Standard rate 2 *0% *0%
Basic rate band – income up to £32,000 £31,785
Basic rate 20% 20%
 Dividend ordinary rate, otherwise taxable at basic rate ***7.5% 10% (0%**)
Higher rate – income over £32,000 £31,785
Higher rate 40% 40%
  Dividend upper rate, otherwise taxable at higher rate ***32.5% 32.5% (25%**)
Additional rate – income over £150,000 £150,000
Additional rate 45% 45%
 Dividend additional rate, otherwise taxable at additional rate ***38.1% 37.5%(30.6%**)
* If an individual’s taxable non-savings income exceeds the starting rate limit, then the starting rate for savings income of £5,000 will not be available for savings income. Non-savings income is taxed as the first slice of income followed by savings income and then dividends.

For 2016/17, £1,000 of savings income for basic rate taxpayers (£500 for higher rate) may be tax-free.

** Effective rate with tax credit

*** For 2016/17 the first £5,000 of dividends are tax-free With effect from 6 April 2016 the 10% notional dividend tax credit is abolished and a Dividend Allowance of £5,000 per year has been introduced.

Personal allowance (PA)
Born after 5 April 1938 3 £11,000 £10,600
Born before 6 April 1938 4 £11,000 £10,660
Income limit for PA 3 £100,000 £100,000
Income limit for PA (Born before 6 April 1938) 4 £27,700 £27,700
Blind person’s allowance £2,290 £2,290
Married couple’s allowance (MCA)
Either partner born before 6 April 1935 (relief restricted to 10%) 5 £8,355 £8,355
Transferable tax allowance (‘Marriage Allowance’)
For certain married couples and civil partners born after 5 April 1935 (relief 20%) 6 £1,100 £1,060
Tax Shelters
Venture Capital Trust (VCT) up to £200,000 £200,000
Enterprise Investment Scheme (EIS) up to £1,000,000 £1,000,000
Seed Enterprise Investment Scheme up to £100,000 £100,000
Social Investment Tax Relief £1,000,000 £1,000,000
Golden Handshake max. £30,000 £30,000

Notes

  1. From 2016/17 onwards, all individuals will be entitled to the same personal allowance, regardless of the individual’s date of birth.
  2. If an individual’s taxable non-savings income exceeds the starting rate limit, then the starting rate for savings will not be available for savings income.
  3. The personal allowance, including the minimum age-related allowance, is reduced by £1 for every £2 that adjusted net income exceeds £100,000, regardless of the individual’s date of birth.
  4. Personal allowances for those born before 5 April 1938 are reduced by £1 for each £2 of excess income over £27,700 until the basic allowance is reached.
  5. Similar limits apply to the married couple’s allowance. The reduction in allowance is subject to a minimum level of £3,220. (For couples married before 5 December 2005, only the husband’s income is taken into account. For those married on or after 5 December 2005 or in a civil partnership, only the higher earner’s income is taken into account).
  6. Available to spouses/civil partners born after 5 April 1935. The allowance is 10% of the personal allowance for those born after 5 April 1938. It allows a spouse or civil partner who is not liable to income tax above the basic rate to transfer this amount of their personal allowance to their spouse/civil partner. The recipient must not be liable to tax above the basic rate. The recipient is eligible to a tax reduction at 20% of the transferred amount.