Income Tax Personal Allowance and Basic Rate Limit For 2015/16

For 2015/16, the personal allowance for those born after 5 April 1948 will be increased to £10,500 and the basic rate limit will be reduced to £31,785.

Transferable Tax Allowances for Married Couples and Civil Partners

From 6 April 2015 a spouse or civil partner who is not liable to income tax above the basic rate will be able to transfer up to £1,050 of their personal allowance to their spouse or civil partner, provided that the recipient of the transfer is not liable to income tax above the basic rate. Married couples or civil partners entitled to claim the married couple’s allowance will not be entitled to make a transfer.

Starting Rate of Tax for Savings

From 6 April 2015, the maximum amount of an eligible individual’s savings income that can qualify for the starting rate of tax for savings will be increased to £5,000, and this starting rate will be reduced from 10% to nil.

Qualifying Loan Interest Relief

With effect for interest paid on or after 6 April 2014, income tax relief for interest paid on loans to invest in close UK companies will be extended to include investment in companies resident in an EEA state other than the UK which would be close if they were UK resident. The relief for investment in employee-controlled companies will also be extended to include companies resident in an EEA state other than the UK.

Tax-free Childcare

The Government previously announced a new scheme to be introduced from Autumn 2015 to allow working families to claim 20% of yearly childcare costs. The costs on which the support can be claimed have been increased to £10,000 a year for each child.

Glasgow Athletics Grand Prix

Competitors in the 2014 Glasgow Grand Prix, who are not resident in the UK, will be exempt from UK income tax on any income received as a result of their performance at the Grand Prix, or as a result of any activity carried out between 5 and 14 July 2014, where the main purpose is to support or promote the Grand Prix.

Scottish Rate of Income Tax (SRIT)

Finance Act 2014 will amend Scotland Act 2012 to alter the structure of the income tax legislation setting out how the SRIT is applied in calculating the overall rates of tax applicable to the non-savings income of Scottish taxpayers. The changes to introduce the SRIT are expected to take effect on 6 April 2016.