O'Hagan McGlinchey & Co
O'Hagan McGlinchey & Co

Office opening hours

 Monday - Thursday  

 9.00am-5.00pm

 

 Friday         

 9.00am-3.30pm

Address

O'Hagan McGlinchey & Co
32-34 Dungannon Road

Coalisland

Co. Tyrone

BT71 4HP

 

Tel: 028 87748133

 

Making an appointment

 

You can contact us on the following telephone number if you have any queries or wish to make an appointment:


Tel: 028 87748133

 

Alternatively, please use our contact form.

Tax rates and allowances 2016/17

Income Tax rates and allowances

Income tax

Personal allowances and reliefs

 

2016/17

2015/16

2014/15

2013/14

Personal allowance

 £

 £

£

£

Aged under 65*

11,000

10,600

10,000

9,440

Born between 6 April 1938 and 5 April 1948

11,000

10,600

10,500

10,500

Aged 65–74

 -

-

 -

 -

Aged 75 & over

 -

-

-

-

Born before 6 April 1938

 11,000

10,660

10,660

10,660

Blind person's allowance

 2,290

2,290

 2,230

2,160

Transferable personal allowance (to spouse)**

 1,100

1,060

-

-

Married couples allowance (MCA)

 

 

 

 

Born before 6 April 1935

Max

Min

 

8,355

3,220

 

8,355

3,220

 

8,165

3,140

7,915

 

Age allowance limit

MCA reduced by £1 for every £2 exceeding limit

 27,700

 27,700

 27,000

26,100

Rent a room relief

 7,500

 4,250

 4,250

4,250

 

*Personal allowance restriction from 2010/11 on

The personal allowance is restricted by £1 for every £2 of an individual's adjusted net income above £100,000.

** Transferable allowance: a spouse or civil partner who is not liable to income tax above the basic rate may transfer £1,100 (2015/16 £1,060) of their unused personal allowance to their spouse/civil partner, provided that the recipient of the transfer is not liable to income tax above the basic rate. Taxpayers have 4 years in which to make the election.

Income tax rates

Rate

%

2016/17

2015/16

 2014/15

2013/14

Basic*

20%

£0 -£32,000

£0 - £31,785

£0 to £31,865

£0 to £32,010

Higher

40%

£32,001 to £150,000

£31,786 to £150,000

£31,866 to £150,000

£32,011 to £150,000

Top

45%

£150,001 +

£150,001 +

£150,001 +

£150,001 +

Top

50%

 

-

-

-

 

*Starting rate band

A starting rate applies to savings income up to:

  • £5,000 2016/17 - rate 0%
  • £5,000 2015/16   " "
  • £2,880 2014/15 - rate 10%
  • £2,790 2013/14   " "
  • £2,710 2012/13   " "
  • £2,560 2011/12   " "
  • £2,440 2010/11   " "
  • £2,320 2008/09 to 2009/10  " "

Note the restriction on personal allowances when income is in excess of £100,000 from 2010/11 on.

Personal Savings Allowance

  • From 2016/17 basic rate taxpayers will not have to pay tax on the first £1,000 of their savings income.
  • From 2016/17 higher rate taxpayers will not have to pay tax on the first £500 of their savings income.
  • There is no personal savings allowance for upper rate taxpayers.

From April 2016 banks and building societies will no longer deduct basic rate tax from interest.

Child benefit claimants

Commencing on 7 January 2013 the High Income Child Benefit Tax Charge provisions will claw back Child Benefit payments when a claimant or their partner's income exceeds £50,000.

Dividend tax from 2016/17

  • The dividend tax credit is abolished
  • The first £5,000 of dividend received is tax free
  • Basic rate dividends taxed at 7.5%
  • Higher rate dividends taxed at 32.5%
  • Upper rate dividends taxed at 38.1%

Tax rate & effective tax rate on dividends up to 2015/16

Rate

2013/14 to 2015/16 

Top tax rate

45%

Dividend rate

37.5%

Effective rate*

30.55%

Higher tax rate

40%

Dividend rate

32.5%

Effective rate*

25%

* For example: if an individual who is a top rate tax payer receives a dividend of £20,000 in 2013/14 (dividends are paid net of 10% tax), he will face a tax liability of £6,111 on the net dividend.

 

Pensions - higher rate restrictions

Contribution limits

From 2016/17 

2014/15 to 2015/16

Annual allowance

£40,000

£40,000

Tapered Annual Allowance with income over

£150,000

n/a

Minimum tapered allowance

£10,000

n/a

Lifetime allowance

£1 million

£1.25 million

 

 

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