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Overview of tax legislation and rates 2016 – tables of rates and allowances (Annex B)

This annex includes Budget 2016 announcements of the main rates and allowances. It also covers all announcements made at Budget 2015 and subsequently.

1. Personal tax and benefits

1.1 Income Tax bands of taxable income (£ per year)

Tax year 2015-16 Tax year 2016-17 Tax year 2017-18
Basic rate £0 – 31,785 £0 – 32,000 £0 – 33,500
Higher rate £31,786 – 150,000 £32,001 – 150,000 £33,501 – 150,000
Additional rate Over £150,000 Over £150,000 Over £150,000

1.2 Income Tax rates

Tax year 2015-16 Tax year 2016-17
Basic rate 20% 20%
Higher rate 40% 40%
Additional rate 45% 45%
Dividend ordinary rate – for dividends otherwise taxable at the basic rate (effective rate with tax credit) 1 10 (0%) 7.5%
Dividend upper rate – for dividends otherwise taxable at the higher rate (effective rate with tax credit) 1 32.5% (25%) 32.5%
Dividend additional rate – for dividends otherwise taxable at the additional rate (effective rate with tax credit) 1 37.5% (30.6%) 38.1%

1.3 Starting rates for savings

Tax year 2015-16 Tax year 2016-17
Starting rate for savings 0% 0%
Starting rate limit for savings £5,000 £5,000

1.4 Special rates for trustees’ income

Tax year 2015-16 Tax year 2016-17
Standard rate on first £1,000 of income which would otherwise be taxable at the special rates for trustees Up to 20%, depends on the type of income Up to 20%, depends on the type of income
Trust rate 45% 45%
Dividend trust rate 37.5% 38.1%

1.5 Income Tax allowances 2015-16 (£ per year)

Personal Allowance
Born after 5 April 1938 2 £10,600
Born before 6 April 1938 3 £10,660
Income limit for Personal Allowance £100,000
Income limit for Personal Allowance (born before 6 April 1938) £27,700
Marriage Allowance
Marriage Allowance 4 £1,060
Married Couple’s Allowance for those born before 6 April 1935
Maximum amount of Married Couple’s Allowance 3 5 £8,355
Minimum amount of Married Couple’s Allowance 5 £3,220
Blind Person’s Allowance
Blind Person’s Allowance £2,290

1.6 Income Tax allowances 2016-17 (£ per year)

Personal Allowance
Personal Allowance2 £11,000
Income limit for Personal Allowance £100,000
Income limit for Married Couple’s Allowance £27,700
Marriage Allowance
Marriage Allowance4 £1,100
Married Couple’s Allowance for those born before 6 April 1935
Maximum amount of Married Couple’s Allowance35 £8,355
Minimum amount of Married Couple’s Allowance5 £3,220
Blind Person’s Allowance
Blind Person’s Allowance £2,290
Dividend Allowance
Dividend Allowance 6 £5,000
Personal Savings Allowance
Personal Savings Allowance for basic rate taxpayers 7 £1,000
Personal Savings Allowance for higher rate taxpayers7 £500

1.7 Income Tax allowances 2017-18 (£ per year)

Personal Allowance
Personal Allowance 2 £11,500
Income limit for Personal Allowance £100,000
Income limit for Married Couple’s Allowance £27,700
Marriage Allowance
Marriage Allowance4 £1,150
Married Couple’s Allowance for those born before 6 April 1935
Maximum amount of Married Couple’s Allowance 3 5 £8,355
Minimum amount of Married Couple’s Allowance 5 £3,220
Blind Person’s Allowance
Blind Person’s Allowance £2,290

1.8 Company car tax

2017-18 2018-19 2019-20
CO2 emissions, g/km Appropriate percentage of car list price taxed CO2 emissions, g/km Appropriate percentage of car list price taxed CO2 emissions, g/km Appropriate percentage of car list price taxed
0-50 9 0-50 13 0-50 16
51-75 13 51-75 16 51-75 19
76 to 94 17 76 to 94 19 76 to 94 22
95-99 18 95-99 20 95-99 23
100-104 19 100-104 21 100-104 24
105-109 20 105-109 22 105-109 25
110-114 21 110-114 23 110-114 26
115-119 22 115-119 24 115-119 27
120-124 23 120-124 25 120-124 28
125-129 24 125-129 26 125-129 29
130-134 25 130-134 27 130-134 30
135-139 26 135-139 28 135-139 31
140-144 27 140-144 29 140-144 32
145-149 28 145-149 30 145-149 33
150-154 29 150-154 31 150-154 34
155-159 30 155-159 32 155-159 35
160-164 31 160-164 33 160-164 36
165-169 32 165-169 34 165 and above 37
170-174 33 170-174 35
175-179 34 175-179 36
180-184 35 180 and above 37
185-189 36
190 and above 37

2. National Insurance Contributions (NICs)

2.1 Class 1 NICs: Employee and employer rates and thresholds (£ per week)

Tax year 2015-16 Tax year 2016-17
Weekly Lower Earnings Limit (LEL) 8 112 112
Weekly Primary Threshold (PT) 8 155 155
Weekly Secondary Threshold (ST) 8 156 156
Upper Earnings Limit (UEL) 9 815 827
Upper Secondary Threshold for U21’s 9 815 827
Apprentice Upper Secondary Threshold (AUST) for under 25s 9 10 827
Upper Accruals Point 11 770
Employment Allowance (per employer) £2,000 (per year, per employer) £3,000 (per year, per employer)
Employee’s (primary) Class 1 contribution rates Tax year 2015-16 Tax year 2016-17
Earnings (£ per week)12 NIC rate (per cent) NIC rate (per cent)
Below £112 (LEL)
£112-£155 (PT) 13 0 0
£155-£827 (UEL) 12 12
Above £827 2 2
Employee’s contracted-out rebate Tax year 2015-16 Tax year 2016-17
Salary related schemes (COSR) between LEL & UAP 14 1.4%
Married woman’s reduced rate for (primary) Class 1 contribution rates Tax year 2015-16 Tax year 2016-17
Weekly earnings from between the PT and UEL 5.85% 5.85%
Weekly earnings above the UEL 2% 2%
Employer’s (secondary) Class 1 contribution rates Tax year 2015-16 Tax year 2016-17
Earnings (£ per week) 15 NIC rate (per cent) NIC rate (per cent)
Below £156 (ST) 0 0
Above £156 (ST) 13.8 13.8
Employer’s contracted-out rebate Tax year 2015-16 Tax year 2016-17
COSR schemes between LEL and UAP14 3.4%

3. Class 2 NICs: Self-employed rates and thresholds (£ per week)

Tax year 2015-16 Tax year 2016-17
Small Profits Threshold (SPT) 16 £5,965 £5,965
Class 2 contribution rates 17 Tax year 2015-16 Tax year 2016-17
Annual profits (£ a year) 16 £ per week £ per week
Below £5,965 (SPT) 18 19 £0.00 £0.00
Above £5,965 (SPT) £2.80 £2.80
Special Class 2 rate for share fishermen £3.45 £3.45
Special Class 2 rate for volunteer development workers £5.60 £5.60

3.1 Class 3 NICs: Other rates and thresholds (£ per week)

Tax year 2015-16 Tax year 2016-17
Voluntary contributions 20 21 £14.10 £14.10

3.2 Class 4 NICs: Self-employed and other rates and thresholds (£ per week)

Tax year 2015-16 Tax year 2016-17
Lower Profits Limit (LPL) 22 £8,060 £8,060
Upper Profits Limit (UPL) 23 £42,385 £43,000
Class 4 contribution rates Tax year 2015-16 Tax year 2016-17
Annual profits (£ a year) 24 NIC rate (per cent) NIC rate (per cent)
Below £8,060 (LPL)
£8,060 to £43,000 (UPL) 9 9
Above £43,000 2 2

4. Working and Child Tax Credits, Child Benefit and Guardian’s Allowance

4.1 Working Tax Credit

£ per year (unless stated) Tax year 2015-16 Tax year 2016-17
Basic element £1,960 £1,960
Couple and lone parent element £2,010 £2,010
30-hour element £810 £810
Disabled worker element £2,970 £2,970
Severe disability element £1,275 £1,275

4.2 Childcare element of Working Tax Credit

£ per year (unless stated) Tax year 2015-16 Tax year 2016-17
Maximum eligible cost for one child £175 per week £175 per week
Maximum eligible cost for two or more children £300 per week £300 per week
Percentage of eligible costs covered 70% 70%

4.3 Child Tax Credit

£ per year (unless stated) Tax year 2015-16 Tax year 2016-17
Family element £545 £545
Child element £2,780 £2,780
Disabled child element £3,140 £3,140
Severely disabled child element £1,275 £1,275

4.4 Income thresholds and withdrawal rates

£ per year (unless stated) Tax year 2015-16 Tax year 2016-17
Income threshold £6,420 £6,420
Withdrawal rate (per cent) 41% 41%
First threshold for those entitled to Child Tax Credit only £16,105 £16,105
Income rise disregard £5,000 £2,500
Income fall disregard £2,500 £2,500

4.5 Child Benefit (£ per week)

Tax year 2015-16 Tax year 2016-17
Eldest/only child £20.70 £20.70
Other children £13.70 £13.70

4.6 Guardian’s Allowance (£ per week)

Tax year 2015-16 Tax year 2016-17
Guardian’s Allowance £16.55 £16.55

5. Capital, assets and property

5.1 Pensions tax relief

Tax year 2015-16 Tax year 2016-17
Lifetime Allowance limit £1.25 million £1 million
Annual Allowance limit £40,000 £40,000
Tapered Annual Allowance (applies to income over this amount) N/A £150,000 (including pension contributions)

5.2 Tax-free savings accounts

Tax year 2015-16 Tax year 2016-17
Individual Savings Account (ISA) subscription limit £15,240 £15,240
Junior ISA subscription limit £4,080 £4,080
Child Trust Fund (CTF) subscription limit £4,080 £4,080

5.3 Capital Gains Tax

Tax year 2015-16 Tax year 2016-17
Main rates for individuals 18% / 28% 10% / 20%
Rates for individuals (for gains on residential property not eligible for Private Residence Relief, and carried interest) 18% / 28% 18% / 28%
Main rate for trustees and personal representatives 28% 20%
Rate for trustees and personal representatives (for gains on residential property not eligible for Private Residence Relief) 28% 28%
Annual exempt amount (AEA) for individuals and personal representatives £11,100 £11,100
AEA for most trustees £5,550 £5,550
Rate on gains subject to entrepreneurs’ relief 10% 10%
Rate on gains subject to entrepreneurs’ relief for long-term external investors N/A 10%
Entrepreneurs’ relief: lifetime limit on gains for entrepreneurs £10,000,000 £10,000,000
Entrepreneurs’ relief: separate lifetime limit on gains for external investors N/A £10,000,000

5.4 Inheritance Tax

Tax year 2015-16 Tax year 2016-17
Rate (for estates) 40% 40%
Reduced rate (for estates leaving 10% or more to charity) 36% 36%
Rate (for chargeable lifetime transfers) 20% 20%
Nil rate band limit £325,000 £325,000

5.5 Stamp Duty Land Tax – residential property

Property value Rate (on portion of value above threshold) Rate (on portion of value above threshold) on or after 1 April 2016 if purchase is of an additional residential property 25
0 to £125k 0% 3%
£125k to £250k 2% 5%
£250k to £925k 5% 8%
£925k to £1.5m 10% 13%
£1.5m+ 12% 15%

5.6 Stamp Duty Land Tax – non-residential property: Purchase and Premium Transactions

Property value Rate before 17 March 2016 (on entire property value) Property Value Rate on or after 17 March 2016 (on portion of value above threshold)
0 to £150k 0% 0 to £150k 0%
£150k to £250k 1% £150k to £250k 2%
£250k to £500k 3% £250k+ 5%
£500k + 4%

5.7 Stamp Duty Land Tax – non-residential property: Leasehold Transactions

Net Present Value (NPV) of the Lease Rate before 17 March 2016 (on portion of value above threshold) Net Present Value (NPV) of the Lease Rate on or after 17 March 2016 (on portion of value above threshold)
0 to £150k 0% 0 to £150k 0%
£150K+ 1% £150K to £5m 1%
£5m+ 2%

5.8 Annual Tax on Enveloped Dwellings

Property value Charge for tax year 2015-16 Charge for tax year 2016-17
More than £500,000 but not more than £1m £3,500
More than £1m but not more than £2m £7,000 £7,000
More than £2m but not more than £5m £23,350 £23,350
More than £5m but not more than £10m £54,450 £54,450
More than £10m but not more than £20m £109,050 £109,050
More than £20m + £218,200 £218,200

6. Business and financial services

6.1 Corporation Tax rates

Level of profits Financial year 2014-15 Financial year 2015-1626 Financial year 2016-17
£0 – £300,000: small profits rate 20% N/A N/A
£300,001 – £1,500,000 Marginal rate N/A N/A
Marginal rate fraction 1/400th N/A N/A
£1,500,001 or more: main rate 21% N/A N/A
All profits: main rate N/A 20% 20%
North sea oil and gas ring fence profits27 See footnote 27. See footnote 27. See footnote 27.

6.2Corporation Tax allowances and reliefs

Financial year 2014-15 Financial year 2015-16 Financial year 2016-17
Plant and machinery: main rate expenditure 18% 18% 18%
Plant and machinery: special rate expenditure 8% 8% 8%
Annual investment allowance (AIA) £500,000 28 £425,00029 £200,000
First year allowances (e.g. for certain energy-saving/water efficient products) 100% 100% 100%
R&D tax credits SME scheme 225% 230% 230%
R&D SME payable credit 14.5% 14.5% 14.5%
R&D tax credits large companies scheme 130% 130% Not available for accounting periods starting on or after April 1st 2016.
R&D Expenditure Credit 10% 11% 11%
Patent Box 10% 10% 10%
Film tax relief All films, 25% up to £20m of surrendered loss, 20% thereafter. 25% for all surrendered losses. 25% for all surrendered losses.
Open ended investment companies and authorised unit trusts 30 See footnote 30. See footnote 30. See footnote 30.

6.3Bank Levy

Chargeable equity and long-term chargeable liabilities Short-term chargeable liabilities
1 January – 28 February 2011 0.025% 0.05%
1 March – 30 April 2011 0.05% 0.1%
1 May – 31 December 2011 0.0375% 0.075%
1 January – 31 December 2012 0.044% 0.088%
1 January – 31 December 2013 0.065% 0.130%
1 January 2014 – 31 March 2015 0.078% 0.156%
1 April 2015 0.105% 0.21%
1 January 2016 0.09% 0.18%
1 January 2017 0.085% 0.17%
1 January 2018 0.08% 0.16%
1 January 2019 0.075% 0.15%
1 January 2020 0.07% 0.14%
1 January 2021 onwards 0.05% 0.10%

6.4Bank Surcharge

1 January 2016 onwards 8% on profits

6.5UK oil and gas taxes

2015 2016 2017
Petroleum revenue tax 50% 0% 0%
Ring fence corporation tax 31 See footnote 31. See footnote 31. See footnote 31.
Supplementary charge 20% 10% 10%

6.6Business rates

Financial year 2015-16 Financial year 2016-17
England standard multiplier 49.3p 49.7
England small business multiplier 32 48.0p 48.4

7.Indirect tax

7.1Alcohol duty

Budget 2016 confirmed that alcohol duty rates will change as shown in the table below.

Rate per litre of pure alcohol Duty rate from 23 March 2015 Duty rate from 21 March 2016
Spirits £27.66 £27.66
Spirits-based RTDs £27.66 £27.66
Wine and made-wine: exceeding 22% alcohol by volume (abv) £27.66 £27.66
Rate per hectolitre per cent of alcohol in the beer Duty rate from 23 March 2015 Duty rate from 21 March 2016
Beer – lower strength: exceeding 1.2% – not exceeding 2.8%abv. £8.10 £8.10
Beer – General Beer Duty: exceeding 2.8% – not exceeding 7.5% abv. £18.37 £18.37
Beer – High strength: exceeding 7.5% – in addition to the General Beer Duty £18.37 + £5.48 £18.37 + £5.48
Rate per hectolitre of product Duty rate from 23 March 2015 Duty rate from 21 March 2016
Still cider and perry: exceeding 1.2% – not exceeding 7.5%abv. £38.87 £38.87
Still cider and perry: exceeding 7.5% – less than 8.5% abv. £58.75 £58.75
Sparkling cider and perry: exceeding 1.2% – not exceeding 5.5% abv. £38.87 £38.87
Sparkling cider and perry: exceeding 5.5% – less than 8.5% abv. £264.61 £268.99
Wine and made-wine: exceeding 1.2% – not exceeding 4%abv. £84.21 £85.60
Wine and made-wine: exceeding 4% – not exceeding 5.5%abv. £115.80 £117.72
Still wine and made-wine: exceeding 5.5% – not exceeding 15% abv. £273.31 £277.84
Wine and made-wine: exceeding 15% – not exceeding 22%abv. £364.37 £370.41
Sparkling wine and made-wine: exceeding 5.5% – less than 8.5% abv. £264.61 £268.99
Sparkling wine and made-wine: at least 8.5% – not exceeding 15% abv. £350.07 £355.87

7.2Tobacco products

Budget 2016 announced that the duty rates for all tobacco products will be increased by 2% above inflation, from 6pm on the 16 March 2016. This is in accordance with the Budget 2014 announcement that all tobacco duty rates will increase by this amount each year until the end of this Parliament. Budget 2016 also announced that hand-rolling tobacco duty would rise by an additional 3% above this to 5% above retail price inflation.

From 6pm 18 March 2015 Ad valorem element From 6pm 16 March 2016 Ad valorem element
Cigarettes £189.49 per 1000 cigarettes 16.5% of retail price £196.42 per 1000 cigarettes 16.5% of retail price
Cigars £236.37/kg N/A £245.01/kg N/A
Hand rolling tobacco £185.74/kg N/A £198.10/kg N/A
Other smoking tobacco and chewing tobacco £103.91/kg N/A £107.71/kg N/A

7.3Gambling duties

Bingo duty Tax year 2015-16 Tax year 2016-17
Percentage of bingo promotion profits 10% 10%
General betting duty Tax year 2015-16 Tax year 2016-17
Percentage of ‘net stake receipts’ for fixed odds bets and totalisator bets on horse or dog races 15% 15%
Percentage of ‘net stake receipts’ for financial spread bets 3% 3%
Percentage of ‘net stake receipts’ for all other spread bets 10% 10%
Pool betting duty Tax year 2015-16 Tax year 2016-17
Percentage of net pool betting receipts 15% 15%
Lottery duty Tax year 2015-16 Tax year 2016-17
Percentage of the price paid or payable on taking a ticket or chance in a lottery 12% 12%
Remote gaming duty Tax year 2015-16 Tax year 2016-17
Percentage of remote gaming profits 15% 15%
Machine games duty Tax year 2015-16 Tax year 2016-17
Percentage of the net takings from dutiable machine games with a maximum cost to play not more than 20p and a maximum cash prize not more than £10 (Type 1 machines) 5% 5%
Percentage of net takings from machines which are not Type 1 machines but where the cost to play cannot exceed £5 20% 20%
Percentage of net takings from dutiable machine games where the maximum cost to play can exceed £533 25% 25%

7.4Gaming duty 2015-16

Tax rate 15% 20% 30% 40% 50%
Gross gaming yield £2,347,500 £1,618,000 £2,833,500 £5,981,000 Remainder
New figures for accounting periods beginning on or after 1 April 2016.
Tax rate 15% 20% 30% 40% 50%
Gross gaming yield £2,370,500 £1,634,000 £2,861,500 £6,040,000 Remainder

7.5Insurance Premium Tax

Tax year 2015-16 Tax year 2016-17
Standard rate 6%9.5% (from 1 November 2015) 9.5% 10% (from 1 October 2016)
Higher rate 20% 20%

7.6Climate Change Levy main rates

Budgets 2015 and 2016 announced that the main rates of Climate Change Levy (CCL) will increase in line with RPI in 2016 to 2017, 2017 to 2018 and 2018 to 2019.

Budget 2016 also announced above RPI increases in 2019 to 2020, with rebalancing of the rates and changes to the reduced rates payable by businesses in the Climate Change Agreement scheme.

The main and reduced rates of CCL across the period will be as follows.

Climate Change Levy main rates
Taxable commodity Rate from 1 April 2016 Rate from 1 April 2017 Rate from 1 April 2018 Rate from 1 April 2019
Electricity (£ per kilowatt hour) 0.00559 0.00568 0.00583 0.00847
Natural gas (£ per kilowatt hour) 0.00195 0.00198 0.00203 0.00339
Liquefied petroleum gas (£ per kilogram) 0.01251 0.01272 0.01304 0.02175
Any other taxable commodity (£ per kilogram) 0.01526 0.01551 0.01591 0.02653
Climate Change Levy reduced rates
Taxable commodity Rate from 1 April 2016 Rate from 1 April 2017 Rate from 1 April 2018 Rate from 1 April 2019
Electricity 10% 10% 10% 7%
Natural gas 35% 35% 35% 22%
Liquefied petroleum gas 35% 35% 35% 22%
Any other taxable commodity 35% 35% 35% 22%

7.7CPS rates of CCL and fuel duty

Budget 2014 announced that the carbon price support (CPS) rate per tonne of carbon dioxide (tCO2) will be capped at a maximum of £18 from 2016 to 2017 until 2019 to 2020, capping the CPS rates for each of the individual taxable commodities across this period at around 2015 to 2016 levels.

Budget 2015 announced that the CPS commodity rates for 2017 to 2018 and the indicative commodity rates for 2018 to 2019 and 2019 to 2020 would be unchanged.

Budget 2016 has confirmed the unchanged commodity rates for 2018 to 2019 and the unchanged indicative rates for 2019 to 2020. It has also announced that the £18 per tonne of CO2 cap will be uprated in line with RPI from 2020 to 2021. The indicative rates for 2020 to 2021 have been announced in line with this announcement.

The confirmed and indicative rates across the period will be as follows.

CPS rates of CCL and fuel duty
Capped rate from 1 April 2016 until 31 March 2019 Indicative capped rate from 1 April 2019 to 31 March 2020 Indicative rate from 1 April 2020 to 31 March 2021
Carbon price equivalent (£ per tonne of carbon dioxide) 18.00 18.00 18.57
Supplies of commodity used in electricity generation
Capped rate from 1 April 2016 until 31 March 2019 Indicative capped rate from 1 April 2019 to 31 March 2020 Indicative rate from 1 April 2020 to 31 March 2021
Natural gas (£ per kilowatt hour) 0.00331 0.00331 0.00342
LPG (£ per kilogram) 0.05280 0.05280 0.05447
Coal and other taxable solid fossil fuels (£ per gross gigajoule) 1.54790 1.54790 1.58490
Gas oil; rebated bio blend; and kerosene (£ per litre) 0.04916 0.04916 0.05054
Fuel oil; other heavy oil and rebated light oil (£ per litre) 0.05711 0.05711 0.05874

7.8Aggregates Levy

Budget 2016 has announced that the rate of aggregates levy will remain at £2 per tonne in 2016-17.

Rate from 1 April 2015 Rate from 1 April 2016
Commercially exploited taxable aggregate £2 per tonne £2 per tonne

7.9Landfill Tax

Budget 2015 announced that both the standard and lower rates of Landfill Tax will increase in line with RPI, rounded to the nearest 5 pence, in 2016 to 2017. Budget 2016 announced that both rates would rise in line with RPI in 2017 to 2018 and 2018 to 2019.

Following the introduction of the loss on ignition (LOI) testing regime in Finance Act 2015, the transitional period where the threshold for qualifying fines is 15% will end on 31 March 2016. As announced at Budget 2015, only qualifying fines with an LOI of 10% or lower will be considered eligible for the lower rate from 1 April 2016.

Waste sent to landfill Rate from 1 April 2016 Rate from 1 April 2017 Rate from 1 April 2018
Standard rated (per tonne) £84.40 £86.10 £88.95
Lower rated (per tonne) £2.65 £2.70 £2.80

7.10Air Passenger Duty rates

Air Passenger Duty rates (APD) for 2016 to 2017 were set out at the 2015 Budget. TheAPD rates for 2017 to 2018 are set out below.

Air Passenger Duty rates 33 34
Bands (approximate distance in miles from London) Reduced rate (lowest class of travel) Standard rate 35(other than the lowest class of travel) Higher rate 36
From 01 April 2015 From 01 April 2016 From 01 April 2017 From 01 April 2015 From 01 April 2016 From 01 April 2017 From 01 April 2015 From 01 April 2016 From 01 April 2017
Band A (0 – 2,000 miles) £13 £13 £13 £26 £26 £26 £78 £78 £78
Band B (over 2,000 miles) £71 £73 £75 £142 £146 £150 £426 £438 £450

7.11Fuel Duty – pound per litre unless stated

Light oils Rates on and after 6pm on 23 March 2011
Unleaded petrol 0.5795
Light oil (other than unleaded petrol or aviation gasoline) 0.6767
Aviation gasoline (Avgas) 0.3770
Light oil delivered to an approved person for use as furnace fuel 0.1070
Heavy oils Rates on and after 6pm on 23 March 2011
Heavy oil (diesel) 0.5795
Marked gas oil 0.1114
Fuel oil 0.1070
Heavy oil other than fuel oil, gas oil or kerosene used as fuel 0.1070
Kerosene to be used as motor fuel off road or in an excepted vehicle 0.1114
Biofuels Rates on and after 6pm on 23 March 2011
Bio-ethanol 0.5795
Bio-diesel 0.5795
Bio-diesel for non-road use 0.1114
Bio-diesel blended with gas oil not for road fuel use 0.1114
Road fuel gases Rates on and after 6pm on 23 March 2011
Liquefied petroleum gas (£ per kilogram) 0.3161
Road fuel natural gas including biogas (£ per kilogram) 0.2470
Other fuel Rate on and after 6pm on 23 March 2011 Rate on and after 1 October 2016
Aqua-methanol set aside for road use 0.5795 0.07900

7.12VED bands and rates for cars registered on or after 1 March 2001

The changes to VED rates to take effect from 1 April 2016 are set out in the tables below:

VEDband CO2 emissions (g/km) Tax year 2015-16 Tax year 2016-17
Standard rate37 First year rate37 Standard rate37 First year rate37
A Up to 100 £0 £0 £0 £0
B 101-110 £20 £0 £20 £0
C 111-120 £30 £0 £30 £0
D 121-130 £110 £0 £110 £0
E 131-140 £130 £130 £130 £130
F 141-150 £145 £145 £145 £145
G 151-165 £180 £180 £185 £185
H 166-175 £205 £295 £210 £300
I 176-185 £225 £350 £230 £355
J 186-200 £265 £490 £270 £500
K 38 201-225 £290 £640 £295 £650
L 226-255 £490 £870 £500 £885
M Over 255 £505 £1,100 £515 £1,120

7.13VED bands and rates for cars and vans registered before 1 March 2001

Engine size Tax year 2015-16 Tax year 2016-17
1549cc and below £145 £145
Above 1549cc £230 £235

7.14VED bands and rates for vans registered on or after 1 March 2001

Vehicle registration date Tax year 2015-16 Tax year 2016-17
Early Euro 4 and Euro 5 compliant vans £140 £140
All other vans £225 £230

7.15VED bands and rates for motorcycles

Engine size Tax year 2015-16 Tax year 2016-17
Not over 150cc £17 £17
151cc and 400cc £38 £39
401cc to 600c £59 £60
Over 600cc £81 £82

7.16VED bands and rates for motor tricycles

Engine size Tax year 2015-16 Tax year 2016-17
Not over 150cc £17 £17
All other tricycles £81 £82

7.17VED bands and rates for trade licences

Vehicle type Tax year 2015-16 Tax year 2016-17
Available for all vehicles £165 £165
Available only for bicycles and tricycles (weighing no more than 450kg without a sidecar) £81 £82

7.18VED and levy bands and rates for articulated vehicles and rigid vehicles WITHOUT trailers

The following VED and HGV road user levy rates will apply to HGVs of 12 tonnes or more, from 1 April 2016. The band and rate payable can be calculated by using the look-up tables that follow the rates tables.

VED band (letter and rate number) Total VEDand levy VEDrates Levy bands Levy rates
12 months 6 months 12 months 6 months 12 months 6 months
A0 £165.00 £90.75 £165.00 £90.75 n/a £0 £0
B0 £200.00 £110.00 £200.00 £110.00
A1 £165.00 £91.00 £80.00 £40.00 A £85 £51
A2 £169.00 £93.00 £84.00 £42.00
A3 £185.00 £101.00 £100.00 £50.00
A4 £231.00 £124.00 £146.00 £73.00
A5 £236.00 £126.50 £151.00 £75.50
B1 £200.00 £110.50 £95.00 £47.50 B £105 £63
B2 £210.00 £115.50 £105.00 £52.50
B3 £230.00 £125.50 £125.00 £62.50
C1 £450.00 £249.00 £210.00 £105.00 C £240 £144
C2 £505.00 £276.50 £265.00 £132.50
C3 £529.00 £288.50 £289.00 £144.50
D1 £650.00 £360.00 £300.00 £150.00 D £350 £210
E1 £1,200.00 £664.00 £560.00 £280.00 E £640 £384
E2 £1,249.00 £688.50 £609.00 £304.50
F £1,500.00 £831.00 £690.00 £345.00 F £810 £486
G £1,850.00 £1,025.00 £850.00 £425.00 G £1,000 £600

7.19VED and levy amounts payable for rigid vehicles with trailers (vehicles WITH Road Friendly Suspension)

HGV axles Levy band Trailer weight category Maximum total weight of HGV and trailer VED band (letter) and rate (number) VEDrate: 12 months VEDrate: 6 months Levy rate: 12 months Levy rate: 6 months
Two B(T) 4,001-12,000kg 27,000kg B(T)1 £230 £115 £135 £81
Over 12,000kg 33,000kg B(T)3 £295 £147.50
36,000kg B(T)6 £401 £200.50
38,000kg B(T)4 £319 £159.50
40,000kg B(T)7 £444 £222
D(T) 4,001-12,000kg 30,000kg D(T)1 £365 £182.50 £450 £270
Over 12,000kg 38,000kg D(T)4 £430 £215
40,000kg D(T)5 £444 £222
Three B(T) 4,001-12,000kg 33,000kg B(T)1 £230 £115 £135 £81
Over 12,000kg 38,000kg B(T)3 £295 £147.50
40,000kg B(T)5 £392 £196
44,000kg B(T)3 £295 £147.50
C(T) 4,001-12,000kg 35,000kg C(T)1 £305 £152.50 £310 £186
Over 12,000kg 38,000kg C(T)2 £370 £185
40,000kg C(T)3 £392 £196
44,000kg C(T)2 £370 £185
D(T) 4,001-10,000kg 33,000kg D(T)1 £365 £182.50 £450 £270
36,000kg D(T)3 £401 £200.50
10,001-12,000kg 38,000kg D(T)1 £365 £182.50
Over 12,000kg 44,000kg D(T)4 £430 £215
Four B(T) 4,001-12,000kg 35,000kg B(T)1 £230 £115 £135 £81
Over 12,000kg 44,000kg B(T)3 £295 £147.50
C(T) 4,001-12,000kg 37,000kg C(T)1 £305 £152.50 £310 £186
Over 12,000kg 44,000kg C(T)2 £370 £185
D(T) 4,001-12,000kg 39,000kg D(T)1 £365 £182.50 £450 £270
Over 12,000kg 44,000kg D(T)4 £430 £215
E(T) 4,001-12,000kg 44,000kg E(T)1 £535 £267.50 £830 £498
Over 12,000kg 44,000kg E(T)2 £600 £300

7.20VED and levy amounts payable for rigid vehicles with trailers (vehicles WITHOUT Road Friendly Suspension)

HGV axles Levy band Trailer weight category Total weight of HGV and trailer, not over VED band (letter) and rate (number) VEDrate:12 months VEDrate: 6 months Levy rate: 12 months Levy rate: 6 months
Two B(T) 4,001-12,000kg 27,000kg B(T)1 £230 £115 £135 £81
Over 12,000kg 31,000kg B(T)3 £295 £147.50
33,000kg B(T)6 £401 £200.50
36,000kg B(T)10 £609 £304.50
38,000kg B(T)7 £444 £222
40,000kg B(T)9 £604 £302
D(T) 4,001-12,000kg 30,000kg D(T)1 £365 £182.50 £450 £270
Over 12,000kg 33,000kg D(T)4 £430 £215
36,000kg D(T)8 £609 £304.50
38,000kg D(T)5 £444 £222
40,000kg D(T)7 £604 £302
Three B(T) 4,001-10,000kg 29,000kg B(T)1 £230 £115 £135 £81
31,000kg B(T)2 £289 £144.50
10,001-12,000kg 33,000kg B(T)1 £230 £115
Over 12,000kg 36,000kg B(T)3 £295 £147.50
38,000kg B(T)5 £392 £196
40,000kg B(T)8 £542 £271
C(T) 4,001-10,000kg 31,000kg C(T)1 £305 £152.50 £310 £186
33,000kg C(T)4 £401 £200.50
10,001-12,000kg 35,000kg C(T)1 £305 £152.50
Over 12,000kg 36,000kg C(T)2 £370 £185
38,000kg C(T)3 £392 £196
40,000kg C(T)5 £542 £271
D(T) 4,001-10,000kg 31,000kg D(T)1 £365 £182.50 £450 £270
33,000kg D(T)3 £401 £200.50
35,000kg D(T)8 £609 £304.50
10,001-12,000kg 36,000kg D(T)1 £365 £182.50
37,000kg D(T)2 £392 £196
Over 12,000kg 38,000kg D(T)4 £430 £215
40,000kg D(T)6 £542 £271
Four B(T) 4,001-12,000kg 35,000kg B(T)1 £230 £115 £135 £81
Over 12,000kg 40,000kg B(T)3 £295 £147.50
C(T) 4,001-12,000kg 37,000kg C(T)1 £305 £152.50 £310 £186
Over 12,000kg 40,000kg C(T)2 £370 £185
D(T) 4,001-10,000kg 36,000kg D(T)1 £365 £182.50 £450 £270
37,000kg D(T)5 £444 £222
10,001-12,000kg 39,000kg D(T)1 £365 £182.50
Over 12,000kg 40,000kg D(T)4 £430 £215
E(T) 4,001-10,000kg 38,000kg E(T)1 £535 £267.50 £830 £498
40,000kg E(T)3 £604 £302
10,000-12,000kg 40,000kg E(T)1 £535 £267.50

7.21Rigid goods vehicles

The band and rate payable can be calculated by using the following look-up tables. Note that in all the tables below the letter indicates the VED and levy band the vehicle is in, and the number indicates the rate that is payable as part of that band (for example B2 would refer to VED and levy band B, and rate 2 as determined by the weight and axle configuration of the vehicle). For vehicles with trailers, the rate paid depends on whether the vehicle has road-friendly suspension. There are separate tables for with and without RFS.

Rigid goods vehicle – WITHOUT trailer
Revenue weight of vehicle (not trailer), kg: over Revenue weight of vehicle (not trailer), kg: not over 2 axles 3 axles 4 or more axles
3,500 7,500 A0 A0 A0
7,500 11,999 B0 B0 B0
11,999 14,000 B1 B1 B1
14,000 15,000 B2 B1 B1
15,000 19,000 D1 B1 B1
19,000 21,000 D1 B3 B1
21,000 23,000 D1 C1 B1
23,000 25,000 D1 D1 C1
25,000 27,000 D1 D1 D1
27,000 44,000 D1 D1 E1
Rigid vehicles – WITH trailer
Revenue weight of vehicle (not trailer), kg: over Revenue weight of vehicle (not trailer), kg: not over Two-axled rigid Three-axled rigid Four-axled rigid
11,999 15,000 B(T) B(T) B(T)
15,000 21,000 D(T) B(T) B(T)
21,000 23,000 E(T) C(T) B(T)
23,000 25,000 E(T) D(T) C(T)
25,000 27,000 E(T) D(T) D(T)
27,000 44,000 E(T) E(T) E(T)

7.22Articulated vehicles

Articulated vehicles – Tractive unit with three or more axles
Revenue weight of vehicle (not trailer), kg: over Revenue weight of vehicle (not trailer), kg: not over One or more semi-trailer axles Two or more semi trailer axles Three or more semi-trailer axles
3,500 11,999 A0 A0 A0
11,999 25,000 A1 A1 A1
25,000 26,000 A3 A1 A1
26,000 28,000 A4 A1 A1
28,000 29,000 C1 A1 A1
29,000 31,000 C3 A1 A1
31,000 33,000 E1 C1 A1
33,000 34,000 E2 D1 A1
34,000 36,000 E2 D1 C1
36,000 38,000 F E1 D1
38,000 44,000 G G E1
Articulated vehicles – Tractive unit with two axles
Revenue weight of vehicle (not trailer), kg: over Revenue weight of vehicle (not trailer), kg: not over One or more semi-trailer axles Two or more semi trailer axles Three or more semi-trailer axles
3,500 11,999 A0 A0 A0
11,999 22,000 A1 A1 A1
22,000 23,000 A2 A1 A1
23,000 25,000 A5 A1 A1
25,000 26,000 C2 A3 A1
26,000 28,000 C2 A4 A1
28,000 31,000 D1 D1 A1
31,000 33,000 E1 E1 C1
33,000 34,000 E1 E2 C1
34,000 38,000 F F E1
38,000 44,000 G G G

7.23VAT

April 2015-16 April 2016-17
Standard rate 20% 20%
Reduced rate 5% 5%
Zero rate 0% 0%
Exempt N/A N/A

7.24VAT registration and deregistration thresholds

From April 2015 From April 2016
VAT registration thresholds £82,000 £83,000
VAT deregistration threshold £80,000 £81,000
  1. From April 2016 the dividend tax credit will be abolished and replaced with a new £5,000 tax-free Dividend Allowance. 23
  2. The Personal Allowance reduces where the income is above £100,000 – by £1 for every £2 of income above the £100,000 limit. This reduction applies irrespective of date of birth. 23
  3. These allowances reduce where the income is above the income limit – by £1 for every £2 of income above the limit of £27,700 down to the minimum/basic allowance. 234
  4. This transferable allowance is available to married couples and civil partners who are not in receipt of married couple’s allowance. A spouse or civil partner who is not liable to income tax; or not liable at the higher or additional rates, can transfer this amount of their unused personal allowance to their spouse or civil partner. The recipient must not be liable to income tax at the higher or additional rates. 23
  5. The relief for this allowance is given at 10%. 23456
  6. From April 2016, the new Dividend Allowance means that individuals will not have to pay tax on the first £5,000 of dividend income they receive.
  7. From April 2016, the new Personal Savings Allowance means that basic rate taxpayers will not have to pay tax on the first £1,000 of savings income they receive and higher rate taxpayers will not have tax to pay on their first £500 of savings income. 2
  8. These thresholds are uprated by CPI. 23
  9. These thresholds are uprated in line with the Higher Rate Threshold to maintain alignment between the Upper Earnings Limit and Higher Rate Threshold. 23
  10. The Upper Secondary Threshold for Apprentices under 25 comes into effect on 6 April 2016.
  11. The Upper Accruals Point is the upper level of earnings to which the contracted out rebate is applied. When the contracted out rebate is abolished in April 2016, the Upper Accruals Point will also be removed from the NICs system.
  12. The limits are defined as LEL – Lower Earnings Limit; PT – Primary Threshold; and UEL – Upper Earnings Limit.
  13. No National Insurance contributions (NICs) are actually payable but a notional Class 1 NIC is deemed to have been paid in respect of earnings between the LEL and PT to protect contributory benefit entitlement.
  14. The contracting out rebate will be abolished from 6 April 2016. 2
  15. The limit is defined as ST – Secondary Threshold.
  16. These thresholds are uprated by CPI. 2
  17. These contribution rates are uprated by CPI.
  18. The Limit is defined as SPT – Small Profits Threshold
  19. Class 2 NICs are liable to be paid by all self-employed persons with profits above the Small Profits Threshold (SPT). The self-employed may choose to pay Class 2 if their profits are below the SPT.
  20. This contribution rate is uprated by CPI.
  21. Class 3 NICs can be paid by contributors to make the year a qualifying year for the basic State Pension (new State Pension from 6 April 2016) and Bereavement Benefit purposes.
  22. This threshold is uprated by CPI.
  23. This threshold is uprated in line with the Higher Rate Threshold to maintain alignment between the Upper Profits Limit and Higher Rate Threshold.
  24. These limits are defined as LPL – Lower Profits Limit; and UPL – Upper Profits Limit.
  25. See HMRC guidance note on whether the higher rate applies.
  26. From 1 April 2015, for all profits except North Sea Oil and gas ring fence profits, corporation tax is paid at a single rate of 20%.
  27. For North Sea Oil and gas ring fence profits the main rate is 30 per cent and the small profits rate is 19 per cent. The marginal relief ring fence fraction is 11/400ths. 234
  28. It was announced at Budget 2014 that legislation would be included in Finance Bill 2014 to further increase the AIA to £500,000 for a temporary period for qualifying expenditure incurred between April 2014 and December 2015. Summer Budget 2015 announced that the permanent level of the AIA would rise to £200,000 from 1 January 2016.
  29. Financial year 2015-16 encompasses two AIA periods. The £425,000 is calculated as 9 months at £500,000 and 3 months at £200,000.
  30. For open ended investment companies and authorised unit trusts the applicable corporation tax rate is 20 per cent. 234
  31. For North Sea oil and gas ring fence profits the main rate is 30 per cent and the small profits rate is 19 per cent. The marginal relief ring fence fraction is 11/400ths.
  32. Small business multiplier applies to properties with a rateable value of less than £18,000 (or £25,500 in London).
  33. APD applies to all flights aboard aircraft 5.7 tonnes and above.
  34. Rates for direct long-haul flights from Northern Ireland are devolved and set at £0. Direct long haul journeys are those where the first leg of the journey is to a destination outside Band A.
  35. Where a class of travel provides a seat pitch in excess of 1.016 metres (40 inches), the standard rate is the minimum rate that applies.
  36. The higher rate applies to flights on aircraft of 20 tonnes and above, with fewer than 19 seats.
  37. Alternative fuel discount: £10 for all cars. 234
  38. Includes cars emitting over 225g/km registered before 23 March 2006.

 

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