Income Tax

* Savings income is taxed at 0% up to £5,000 (2014-15 £2,880 @10%).
If an individuals taxable non-savings income exceeds £5,000 then the starting rate limit for savings will not be available.
The 0% rate only applies to the extent that other taxable income is less than £5,000.
Dividends are deemed to be the top slice of total income in computing tax liability at 10%, 32.5% or 37.5% respectively for 2015-16.

* The personal allowance is gradually withdrawn by £1 for every £2 of income over £100,000.
** The age related allowances are gradually withdrawn by £1 for every £2 of income over £27,700 (2014-15 £27,000), for those born before 6 April 1948 until reduced to level of basic personal allowance.
Married couples allowance - tax relief given at 10%

* For those born after 5 April 1938, a basic rate or non tax payer can transfer up to £1,060 of their personal allowance to a spouse or civil partner who is not a higher rate tax payer.
There is a cap on certain Income Tax reliefs of the greater of £50,000 or 25% of income.

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