Income Tax Reliefs

    2015/16 2016/17
    £ £
Personal allowance - under 65* 10,600 11,000
  - 65 - 74 ** 10,600 11,000
  - 75 and over ** 10,660 11,000
Married couple's
allowance (MCA) (relief at 10%)
- 75 and over and born before 06/04/1935** 8,355 8,355
  - min. amount 3,220 3,220
**Age allowance income limit Extra allowances reduced by 1/2 of income over 27,700 27,700
  N.B. Personal allowance abates before MCA.    
Blind person’s allowance (surplus may be transferred to spouse/civil partner) 2,290 2,290

* Basic personal allowance reduced by £1 for every £2 of income over £100,000.  Therefore personal allowance lost completely at income of £122,000 (2015/16) or £121,200 (2014/15).

From 2015/16, married couples can transfer up to up to 10% of one spouse's personal allowance (PA) to the other where the transferor has taxable income below their PA and the other is a basic rate taxpayer.  This option is not available where the transferee is a higher or additional rate taxpayer.

 

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