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

Question 1

1. Personal tax and benefits

Accepted Answer

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) ^{[footnote 1]}	10 (0%)	7.5%
Dividend upper rate - for dividends otherwise taxable at the higher rate (effective rate with tax credit) ^{[footnote 1]}	32.5% (25%)	32.5%
Dividend additional rate - for dividends otherwise taxable at the additional rate (effective rate with tax credit) ^{[footnote 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 ^{[footnote 2]}	£10,600
Born before 6 April 1938 ^{[footnote 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 ^{[footnote 4]}			£1,060

Married Couple’s Allowance for those born before 6 April 1935
Maximum amount of Married Couple’s Allowance ^{[footnote 3]} ^{[footnote 5]}	£8,355
Minimum amount of Married Couple’s Allowance ^{[footnote 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 Allowance^{[footnote 2]}	£11,000
Income limit for Personal Allowance	£100,000
Income limit for Married Couple’s Allowance	£27,700

Marriage Allowance
Marriage Allowance^{[footnote 4]}			£1,100

Married Couple’s Allowance for those born before 6 April 1935
Maximum amount of Married Couple’s Allowance^{[footnote 3]}^{[footnote 5]}	£8,355
Minimum amount of Married Couple’s Allowance^{[footnote 5]}	£3,220

Blind Person’s Allowance
Blind Person’s Allowance	£2,290

Dividend Allowance
Dividend Allowance ^{[footnote 6]}			£5,000

Personal Savings Allowance
Personal Savings Allowance for basic rate taxpayers ^{[footnote 7]}	£1,000
Personal Savings Allowance for higher rate taxpayers^{[footnote 7]}	£500

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

Personal Allowance
Personal Allowance ^{[footnote 2]}	£11,500
Income limit for Personal Allowance	£100,000
Income limit for Married Couple’s Allowance	£27,700

Marriage Allowance
Marriage Allowance^{[footnote 4]}			£1,150

Married Couple’s Allowance for those born before 6 April 1935
Maximum amount of Married Couple’s Allowance ^{[footnote 3]} ^{[footnote 5]}	£8,355
Minimum amount of Married Couple’s Allowance ^{[footnote 5]}	£3,220

Blind Person’s Allowance
Blind Person’s Allowance	£2,290

1.8 Company car tax

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
2017-18		2018-19		2019-20
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

Question 2

2. National Insurance Contributions (NICs)

Accepted Answer

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

	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

Employee’s (primary) Class 1 contribution rates	Tax year 2015-16	Tax year 2016-17
Earnings (£ per week)^{[footnote 12]}	NIC rate (per cent)	NIC rate (per cent)
Below £112 (LEL)	-	-
£112-£155 (PT) ^{[footnote 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 ^{[footnote 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) ^{[footnote 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 UAP^{[footnote 14]}	3.4%	-

Question 3

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

Accepted Answer

	Tax year 2015-16	Tax year 2016-17
Small Profits Threshold (SPT) ^{[footnote 16]}	£5,965	£5,965

Class 2 contribution rates ^{[footnote 17]}	Tax year 2015-16	Tax year 2016-17
Annual profits (£ a year) ^{[footnote 16]}	£ per week	£ per week
Below £5,965 (SPT) ^{[footnote 18]} ^{[footnote 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 ^{[footnote 20]} ^{[footnote 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) ^{[footnote 22]}	£8,060	£8,060
Upper Profits Limit (UPL) ^{[footnote 23]}	£42,385	£43,000

Class 4 contribution rates	Tax year 2015-16	Tax year 2016-17
Annual profits (£ a year) ^{[footnote 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

Question 4

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

Accepted Answer

4.1 Working Tax Credit

	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

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

Question 5

5. Capital, assets and property

Accepted Answer

5.1 Pensions tax relief

	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

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 ^{[footnote 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

Question 6

6. Business and financial services

Accepted Answer

6.1 Corporation Tax rates

	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

6.2 Corporation 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 ^{[footnote 28]}	£425,000 ^{[footnote 29]}	£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 ^{[footnote 30]}	See footnote ^{[footnote 30]}.	See footnote ^{[footnote 30]}.	See footnote ^{[footnote 30]}.

6.3 Bank 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%

6.4 Bank Surcharge

1 January 2016 onwards

8% on profits

6.5 UK oil and gas taxes

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

6.6 Business rates

	Financial year 2015-16	Financial year 2016-17
England standard multiplier	49.3p	49.7
England small business multiplier ^{[footnote 32]}	48.0p	48.4

Question 7

7. Indirect tax

Accepted Answer

7.1 Alcohol 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

7.2 Tobacco 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

7.3 Gambling 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%

7.4 Gaming 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

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

7.5 Insurance 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%

7.6 Climate 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.

Taxable commodity	Rate from 1 April 2016	Rate from 1 April 2017	Rate from 1 April 2018	Rate from 1 April 2019
Climate Change Levy main rates
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

Taxable commodity	Rate from 1 April 2016	Rate from 1 April 2017	Rate from 1 April 2018	Rate from 1 April 2019
Climate Change Levy reduced rates
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%

7.7 CPS 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

7.8 Aggregates 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

7.9 Landfill 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

7.10 Air Passenger Duty rates

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

Air Passenger Duty rates ^{[footnote 34]} ^{[footnote 35]}
Bands (approximate distance in miles from London)	Reduced rate (lowest class of travel)	Standard rate ^{[footnote 36]} (other than the lowest class of travel)	Higher rate ^{[footnote 37]}
	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

7.11 Fuel 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

7.12 VED 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:

VED band	CO2 emissions (g/km)	Tax year 2015-16		Tax year 2016-17
		Standard rate ^{[footnote 39]}	First year rate ^{[footnote 39]}	Standard rate ^{[footnote 39]}	First year rate ^{[footnote 39]}
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 ^{[footnote 38]}	201-225	£290	£640	£295	£650
L	226-255	£490	£870	£500	£885
M	Over 255	£505	£1,100	£515	£1,120

7.13 VED 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

7.14 VED 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

7.15 VED 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

7.16 VED 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

7.17 VED 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

7.18 VED 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 VED and levy		VED rates		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

7.19 VED 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)	VED rate: 12 months	VED rate: 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

7.20 VED 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)	VED rate:12 months	VED rate: 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

7.21 Rigid 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)

7.22 Articulated 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

7.23 VAT

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

7.24 VAT registration and deregistration thresholds

	From April 2015	From April 2016
VAT registration thresholds	£82,000	£83,000
VAT deregistration threshold	£80,000	£81,000

From April 2016 the dividend tax credit will be abolished and replaced with a new £5,000 tax-free Dividend Allowance. ↩ ↩² ↩³
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. ↩ ↩² ↩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. ↩ ↩² ↩³ ↩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. ↩ ↩² ↩³
The relief for this allowance is given at 10%. ↩ ↩² ↩³ ↩⁴ ↩⁵ ↩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. ↩
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
These thresholds are uprated by CPI. ↩ ↩² ↩³
These thresholds are uprated in line with the Higher Rate Threshold to maintain alignment between the Upper Earnings Limit and Higher Rate Threshold. ↩ ↩² ↩³
The Upper Secondary Threshold for Apprentices under 25 comes into effect on 6 April 2016. ↩
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. ↩
The limits are defined as LEL - Lower Earnings Limit; PT - Primary Threshold; and UEL - Upper Earnings Limit. ↩
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. ↩
The contracting out rebate will be abolished from 6 April 2016. ↩ ↩²
The limit is defined as ST - Secondary Threshold. ↩
These thresholds are uprated by CPI. ↩ ↩²
These contribution rates are uprated by CPI. ↩
The Limit is defined as SPT – Small Profits Threshold ↩
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. ↩
This contribution rate is uprated by CPI. ↩
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. ↩
This threshold is uprated by CPI. ↩
This threshold is uprated in line with the Higher Rate Threshold to maintain alignment between the Upper Profits Limit and Higher Rate Threshold. ↩
These limits are defined as LPL – Lower Profits Limit; and UPL – Upper Profits Limit. ↩
See HMRC guidance note on whether the higher rate applies. ↩
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%. ↩
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. ↩ ↩² ↩³ ↩⁴
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. ↩
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. ↩
For open ended investment companies and authorised unit trusts the applicable corporation tax rate is 20 per cent. ↩ ↩² ↩³ ↩⁴
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. ↩
Small business multiplier applies to properties with a rateable value of less than £18,000 (or £25,500 in London). ↩
APD applies to all flights aboard aircraft 5.7 tonnes and above. ↩
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. ↩
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. ↩
The higher rate applies to flights on aircraft of 20 tonnes and above, with fewer than 19 seats. ↩
Alternative fuel discount: £10 for all cars. ↩ ↩² ↩³ ↩⁴
Includes cars emitting over 225g/km registered before 23 March 2006. ↩

£ 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

	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)

	Tax year 2015-16	Tax year 2016-17
Weekly Lower Earnings Limit (LEL) ^{[footnote 8]}	112	112
Weekly Primary Threshold (PT) ^{[footnote 8]}	155	155
Weekly Secondary Threshold (ST) ^{[footnote 8]}	156	156
Upper Earnings Limit (UEL) ^{[footnote 9]}	815	827
Upper Secondary Threshold for U21’s ^{[footnote 9]}	815	827
Apprentice Upper Secondary Threshold (AUST) for under 25s ^{[footnote 9]} ^{[footnote 10]}	-	827
Upper Accruals Point ^{[footnote 11]}	770	-
Employment Allowance (per employer)	£2,000 (per year, per employer)	£3,000 (per year, per employer)

Level of profits	Financial year 2014-15	Financial year 2015-16 ^{[footnote 26]}	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 profits ^{[footnote 27]}	See footnote ^{[footnote 27]}.	See footnote ^{[footnote 27]}.	See footnote ^{[footnote 27]}.

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