|
|
Inheritance Tax
| |
2016/17 |
2015/16 |
| Standard threshold |
£325,000 |
£325,000 |
| Combined threshold maximum for married couples and civil partners |
£650,000 |
£650,000 |
| Rate of tax on balance: |
|
|
Chargeable lifetime transfers
Transfers on, or within 7 years of, death |
20%
*40% |
20%
*40% |
| * A lower rate of 36% applies where 10% or more of a deceased person's net estate is left to charity |
All lifetime transfers not covered by exemptions and made within seven years of death will be added back into the estate for the purpose of calculating the tax payable. Tax attributable to such transfers is then subject to Taper Relief:
| Years before death |
0-3 |
3-4 |
4-5 |
5-6 |
6-7 |
| Tax reduced by |
0% |
20% |
40% |
60% |
80% |
| Main Reliefs |
| Business property: |
| - business or interest therein |
100% |
| - qualifying shareholdings in unquoted* companies |
100% |
| - land, buildings, machinery, or plant used by transferor's controlled company or partnership |
50% |
| Agricultural property |
100% or 50% |
| *Unquoted companies include those listed on AIM |
Main Exemptions
- Most transfers between spouses and civil partners.
- The first £3,000 of lifetime transfers in any tax year plus any unused balance from previous year.
- Gifts of up to but not exceeding £250 p.a. to any number of persons.
- Gifts in consideration of marriage or civil partnership of: up to £5,000 by a parent, up to £2,500 by a grandparent or great grandparent, or up to £1,000 by any other person.
- Gifts made out of income that form part of normal expenditure and do not reduce the standard of living.
- Gifts to charities, whether made during lifetime or on death.
|
|
|
| Payment Dates |
| Income Tax and National Insurance Contributions |
| 31 July 2016 |
2015/16 second payment on account |
| 31 January 2017 |
2015/16 balancing payment, and
2016/17 first payment on account |
| 31 July 2017 |
2016/17 second payment on account |
| 31 January 2018 |
2016/17 balancing payment, and
2017/18 first payment on account |
| Class 1A NICs |
| 19 July 2016 |
2015/16 payment due |
| Capital Gains Tax |
| 31 January 2017 |
2015/16 Capital Gains Tax |
| 31 January 2018 |
2016/17 Capital Gains Tax |
| Corporation Tax |
| 9 months and one day after the end of the accounting period (or by quarterly instalments if large company) |
| Inheritance Tax |
| 6 months after the end of the month of death. |
| For chargeable lifetime transfers between 6 April and 30 September, due date is 30 April in the following year. |
| For chargeable lifetime transfers, due date is six months after the end of the month in which the transfer was made. |
| Latest Filing/Issuing Deadlines - 2015/16 PAYE Returns |
| 31 May 2016 |
Issue P60s to employees |
| 6 July 2010 |
P11D and P11Db - also issue copies to employees
Form 42 (reporting of employment-related securities) |
| 2016 Self Assessment Tax Return (SATR) |
| 31 October 2016 |
Last filing date - SATR Paper Version |
| 30 December 2010 |
SATR Online if outstanding tax (subject to cap) to be included in 2017/18 PAYE code |
| 31 January 2017 |
Last filing date - SATR Online | |
|
Mileage Allowances
| It is quite normal practice for employees to be reimbursed at a reasonable mileage rate for business use of their own vehicles. The income tax and national insurance contributions (NICs) position is as follows: |
| A statutory system of Approved Mileage Allowance Payments (AMAPs) applies for employees using their own vehicles for business journeys, as follows: |
Cars and vans:
on the first 10,000 miles in the tax year
on each additional mile above this |
45p per mile
25p per mile
|
| Motorcycles |
24p per mile |
| Bicycles |
20p per mile |
|
It is no longer possible to make a claim for tax relief based on the actual receipted bills, nor claim capital allowances or interest on loans related to car purchases.
Unless the employee is reimbursed at a rate higher than the AMAP, the payments do not need to be reported on a P11D. If the employer pays less than these rates, it is possible for the employee to claim income tax relief for the shortfall.
Rates of up to 5p per mile, per passenger, are also tax- and NICs- free when paid for the carriage of fellow employees on the same business trip. This also covers volunteers who drive for hospital car services etc, even though they are not strictly employees. | |
|
|
National Insurance Contributions
| Class 1 |
Employee (primary) |
| Payable on weekly earnings of |
|
| Below £112 (lower earnings limit) |
0% |
| £112 - £155 (primary threshold) |
0%* |
| £155.01 - £827 (upper earnings limit) |
12%** |
| Above £827 |
2%** |
* No NICs are actually payable but notional Class 1 NIC is deemed to have been paid; this protects certain state benefit entitlements.
** Over state pension age, the employee contribution is generally nil |
| |
Employer (secondary) |
| Up to £156 (secondary threshold) |
Nil |
| Above £156 |
13.8% |
| £156.01 - £827 (upper secondary threshold - under 21s) |
0% |
| £156.01 - £827 (apprentice upper secondary threshold for under 25s) |
0% |
| |
|
| Employment Allowance |
Up to £3,000 (per year) |
| |
|
| Class 1A (on relevant benefits) |
13.8% |
| |
|
| Class 1B (on PAYE settlement arrangement) |
13.8% |
| |
|
| Class 2 (Self employed) |
£2.80 per week |
| Small profits threshold |
£5,965 per annum |
| |
|
| Class 3 (Voluntary) |
£14.10 per week |
| |
|
| Class 3A |
|
| Voluntary contributions may be available to 5 April 2017 in order to obtain extra additional State Pension (maximum £25 a week) - variable contribution rates according to age. |
| |
|
| Class 4* (Self employed on annual profits) |
|
| £8,060 - £43,000 |
9% |
| Excess over £43,000 |
2% |
| *Exemption applies if state pension age was reached by 6 April 2016. | |
|
There is no financial limit on the amount that may be contributed to a registered pension scheme. The maximum amount on which an individual can claim tax relief in any tax year is the greater of the individual's UK relevant earnings or £3,600 (gross).
From 6 April 2016 the annual allowance may be reduced by £1 for every £2 of adjusted income over £150,000 to a minimum of £10,000.
All pension input periods open on 8 July 2015 were closed on that date, with the next input period running from 9 July 2015 to 5 April 2016. All subsequent input periods will be concurrent with the tax year from 2016/17 onwards.
For the sake of fairness during this alignment process, savers may be able to receive an additional annual allowance entitlement. They may be able to receive tax relief on up to £80,000 of pension contributions for 2015/16, with a maximum of £40,000 being available for the period 9 July 2015 to 5 April 2016.
In addition, an individual may have unused brought forward amounts.
The maximum age for tax relief is 74. The lifetime allowance charge applies to cumulative benefits exceeding £1m*. Inheritors can access pension funds worth up to £1m tax-free where savers die before reaching 75. Pensions inherited after the saver reaches 75 will be subject to recipient's marginal rate of tax.
From April 2015 people aged 55 or over can withdraw any sum from their Defined Contribution pension savings. On most withdrawals 25% of the total will be tax-free with the rest subject to income tax at the pensioner's marginal rate.
*Subject to transitional protection for excess amount. |
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