Personal tax
Income Tax, personal allowances, rates of tax and thresholds for 2015 to 2016
For 2015 to 2016 the personal allowance for those born after 5 April 1948 will increase to £10,500 and the basic rate limit will be £31,785.
For 2015 to 2016 the starting rate for savings income will reduce from 10% to 0%, and the maximum amount of an individual’s savings income that can qualify for this starting rate will increase to £5,000. The transferable tax allowance for married couples and civil partners announced at Autumn Statement 2013 will be set at 10% of the personal allowance from 2015-16. This means it will be £1,050 in 2015-16. CIPP comment Pre-budget BBC chat said that ‘a clever personal tax surprise’ would be announced. Can anyone see what’s clever?
New Individual Savings Accounts (NISA), Junior ISA and Child Trust Fund (CTF): increasing flexibility for savers and investors
With effect from 1 July 2014 the annual subscription limit for cash and stocks and shares ISA will be equalised at £15,000, and restrictions on the transfer of funds between stocks and shares and cash ISAs will be removed. Consequential changes will be made to the rules concerning the securities and other investments that can be held in an ISA, and Core Capital Deferred Shares issued by a Building Society will also be eligible for investment in an ISA and CTF.
With effect from 1 July 2014 the annual subscription limit for Junior ISA and CTF will be increased from £3,840 to £4,000.
Premium Bonds Premium Bonds, offered by NS&I, one of the oldest and best known savings products, are held by over 21 million people. The Budget announced that the cap on investments in Premium Bonds will be lifted for the first time since 2003, from £30,000 to £40,000, from 1 June 2014. It will then be lifted again to £50,000 in 2015-16. NS&I will also now offer 2 £1 million prizes per month, rather than 1, starting from the prize draw in August this year. This will increase savers’ chances of winning the largest prize and allow people who want to save more through Premium Bonds to do so. CIPP comment The chancellor did say it was a budget for savers and this is certainly good news for those who actually have some savings and have suffered under the low interest rates. Older investors are also to benefit with the additional benefits from the cap increase on Premium Bonds. Fuel Benefit Charge (FBC) The FBC multipliers for both company cars and vans will increase in line with inflation for 2015 to 2016. The increase will be based on the September 2014 RPI figure. Van Benefit Charge (VBC) The VBC will increase in line with inflation for 2015 to 2016. The increase will be based on the September 2014 RPI figure.
CIPP Policy News Journal
08/04/2015, Page 39 of 521
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