Income tax allowances 2015–16

The Income tax allowances for the current year 2015/16 and previous year comparison are attached as a link below. Also included are NI rates, Working & Child Credit Tax rates & thresholds, Child Benefit & Guardian’s allowances, Tax-free Savings Accounts and Fuel & Van benefit charges.

  2014-15 2015-16 Change
  £ a year    
Personal Allowance      
those born after 5 April 1948 10,000 10,600 600
those born between 6 April 1938 and 5 April 1948 10,500 10,600 100
those born before 6 April 1938 10,660 10,660
Income limit for personal allowance (*1) 100,000 100,00
Income limit for personal allowances (born before 6 April 1948) (*2) 27,000 27,700 700
Married couple’s allowance (*3)      
maximum amount (*4) 8,165 8,355 190
minimum amount (*5)  3,140 3,220 80
Blind person’s allowance  2,230 2,290  60 
 Transferable Tax Allowance for married couples and civil partners (*6)  – 1,060

 

*1 The personal allowance reduces where the individual’s income is above this limit by £1 for every £2 above the limit. This applies regardless of the individual’s date of birth.
*2 This allowance reduces where the individual’s income is above the income limit by £1 for every £2 above the income limit until it reaches the level of the personal allowance for someone born after 5 April 1948.
*3 Available to people born before 6 April 1935. Tax relief for this allowance is restricted to 10 per cent.
*4 This allowance is reduced when the individual’s income is above the income limit. This is at a rate of £1 for every £2 above the income limit until it reaches the minimum amount. Any reduction in the married couple’s allowance applies after any reduction to the individual’s personal allowance.
*5 This is also the maximum relief for maintenance payments where at least one of the parties is born before 6 April 1935.
*6 Available to spouses/ civil partners born after 5 April 1935. This 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 of 20% of the transferred amount.

 

For a full list of the tax and tax credit rates and thresholds for 2015-16, use this link to the HMRC website.