6th April Brings New Changes
Monday saw in the new tax year 2015/16 and with it the following tax changes most relevant to contractors…
- Individuals over the age of 55 have flexible access to their defined contribution pension savings.
- The Income Tax Personal Allowance increases to £10,600.
- The higher rate income tax threshold increases to £42,385.
- The new Marriage Allowance comes into effect.
- The starting rate of savings income tax reduces from 10% to 0% for savings up to £5,000.
- The cash ISA limit increases to £15,240.
- Child Trust Funds can now be transferred into Junior ISAs.
- Spouses can now inherit their deceased partner’s ISA benefits.
- If an individual dies before the age of 75, they can now pass on their unused defined contribution pension savings free of income tax.
- Beneficiaries of individuals who die under the age of 75 with a joint life or guaranteed term annuity can now receive any future payments from such policies free of income tax.
- The Employment Allowance extends to include people employing care and support workers to look after themselves or family members.
- Non-UK resident individuals, trusts, personal representatives and narrowly controlled companies are now subject to Capital Gains Tax on gains accruing on the disposal of UK residential property.
- Capital Gains Tax annual exemption amount has increased to £11,100.
- The Fuel Benefit Charge multiplier for both cars and vans increases by RPI.
- Tax Credit payments are stopped in-year where, due to a change in circumstances, a claimant has already received their full annual entitlement.
It doesn’t look like the higher rate tax threshold figure is correct. Wish it were but it isn’t. Unless we are in the 2005-6 tax year….please issue a correction!!!