Income Tax/National Insurance
Personal Allowance	£5,435	up £210
Personal Allowance 65-74	£9,030	up £1,480
Personal Allowance 75+	£9,180	up £1,490
Income Limit for Age-related allowance	£21,800	up £900

Married Couples Allowance for
People born before 6/4/35	£6,535	up £250
Married Couples Allowance 75+	£6,625	up £260
Minimum Married Couples Allowance	£2,540	up £100
Blind Person's Allowance	£1,800	up £70

 

Tax Bands
20% (Basic Rate)	£0-36,000
40% (Higher Rate)	£36,000+

NOTES: Dividend income is "top-sliced", followed by interest income and then other income. Higher rate taxpayers pay tax on dividends at 32.5%. There is a new 10% starting rate for savings income only, with a limit of £2,320. If an individual's taxable non-savings income is above this limit then the 10% rate does not apply. There are no changes to the 10% dividend ordinary rate.

 

National Insurance (Class 1 Employed)
Threshold	£105/week	up £5
Upper Earnings limit	£770/week	up £100
Contracted in contributions rate (£97.01-£645/week)	11%
Contracted in contributions rate (above £645/week)	1%

NOTES: Rebates apply for contracted-out employees and employees in certain pension schemes and other rates apply to married women and the self-employed.

 

Tax Credits
Tax credits must be claimed promptly or lost. Unclaimed personal allowances may be retrieved from HM Revenue & Customs up to six years later BUT tax credits, like most state benefits, may only be backdated for up to three months. Request a claim form or check your eligibility by calling HM Revenue & Customs on 0800 500 022.

Child Tax Credit
Parents, married or unmarried, earning up to £50,000 a year may claim CTC of £545/year for a child aged up to 16 (18 if in full-time education), doubled to £1,090/year for families with a child under one. Families with income below £15,575(up £1,080) may claim CTC of £2,085/year (up £240) for each child. Above these thresholds, the credit is gradually withdrawn.

Child tax credit is paid based on previous year income. Provided that any increase in your current year income does not breach the 'income disregard' threshold the taxman will not want any tax credits back. The income disregard threshold is held at £25,000.

Child Benefit rises by 70p to £18.80/week for the first or eldest child.

Working Tax Credit
The Working Tax Credit is paid via employers. The basic element rises by £70 to £1,800.

 

Capital Gains Tax Threshold
Individuals	£9,600	up £400
Inheritance Tax Threshold	£312,000	up £12,000

 

Pension Schemes Allowances
Annual Allowance	£235,000	up £10,000
Lifetime Allowance	£1.65m	up £50,000