NOTE: This post is more than 12 months old, and the information contained within may no longer be accurate.
Alistair Cunningham
Partly to save me rummaging, but also as a useful service, here are the key allowances for 2016/17:
Income Tax Allowances | |||
Personal allowance | £11,000 | ||
Dividend allowance | £5,000 | ||
Savings rate band | £5,000 | ||
Personal savings allowance | £1,000
(£500 for higher rate tax payers, £0 for additional) |
||
Income tax bands and rates | |||
Effective rate | Dividend rate | ||
Basic rate band | £11,000 – £43,000 | 20% | 7.5% |
Higher rate band I | £43,000 – £150,000 | 40% | 32.5% |
Loss of personal allowance | £100,000 – £122,000 | 60% | 52.5% |
Higher rate band II | £122,000 – £150,000 | 40% | 32.5% |
Additional rate band | £150,000 + | 45% | 38.1% |
Capital Gains Tax | |||
Annual exemption | £11,100 | ||
Inheritance Tax | |||
Nil rate band | £325,000 | ||
Pension Allowances | |||
Earnings under £110,000 | £40,000 | ||
Pension Allowances may be reduced for people earning over £110,000, those who have flexibly accessed their pensions; and Carry Forward may apply for many people. | |||
ISA Allowances | |||
ISA | £15,240 | ||
Junior ISA | £4,080 | ||
Lifetime ISA (from 6th April 2017) | £4,000 |
Contact the Author
Alistair, a founding director of Wingate Financial Planning, specialises in complex client cases, particularly owner-managed businesses, pensions, and retirement planning. He is a member of the Wingate Investment Committee and a Chartered Financial Planner, Fellow of the Personal Finance Society, and member of STEP and the Chartered Institute of Taxation.