Income tax and capital gains tax rates for 2015/16
| Rate Band | Taxable Income | Earnings etc | Savings | Dividends |
| Basic | Up to £31,785 | 20% | 10%/20%* | 10% |
| Higher | Over £31,785 | 40%** | 40%** | 32.5%** |
| Additional | Over £150,000 | 45% | 45% | 37.5% |
| Capital Gains | ||||
| First £11,100 | Tax-free | |||
| Remainder | 18%/28%*** | |||
* There is a 0% starting rate for savings income up to the starting rate limit (£5,000) within the basic rate band. Where taxable non-savings income does not fully occupy the starting rate limit the remainder of the starting rate limit is available for savings income.
** Personal allowance is reduced by £1 for every £2 that adjusted net income exceeds £100,000. The effective marginal rate in this band is 60% (dividends 48.75%).
*** Depends on the level of income and gains.
Transferable Tax Allowance
From 6 April 2015 some married couples and civil partners are eligible for a new Transferable Tax Allowance, enabling spouses to transfer a fixed amount of their personal allowance to their spouse. The option to transfer is available to couples where neither pays tax at the higher or additional rate. If eligible, one partner will be able to transfer 10% of their personal allowance to the other partner (£1,060 for the 2015/16 tax year). For those couples where one person does not use all of their personal allowance the benefit will be up to £212 (20% of £1,060).
Starting rate of tax for savings income
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 is increased from £2,880 to £5,000, and this starting rate is reduced from 10% to 0%. These rates are not available if taxable non-savings income (broadly earnings, pensions, trading profits and property income) exceeds the starting rate limit.