Finance Act 2015 - Personal tax

Personal allowance: increased to £10,600 for 2015/16, £10,800 for 2016/17 and £11,000 for 2017/18.

Blind person’s allowance, married couple’s allowance and income limit for 2015/16: increased by the RPI.

Basic rate limit: increased to £31,900 for 2016/17 and to £32,300 for 2017/18.

Income tax rates: remain at 20%, 40% and 45% for 2015/16.

Remittance basis: from 6 April 2015 charge increased to £60,000 for ‘12 out 14 years’ UK residence test and new £90,000 charge for ’17 out of 20 years’ test.

Capital gains tax: to be charged on gains made by non-residents (including certain companies) disposing of UK residential property from 6 April 2015, with associated changes to private residence relief.

Wasting assets: capital gains exemption for certain wasting assets denied from 1 April 2015 unless used in the seller’s own business.

Entrepreneurs’ relief
  • to be given on crystallisation of qualifying gains deferred by reinvestment under the Enterprise Investment Scheme or Social Investment Tax Relief scheme, for original disposals on or after 3 December 2014;
  • denied for disposals of goodwill to related companies, from 3 December 2014;
  • denied for disposals on or after 18 March 2015 of privately owned assets used in a business unless associated with a disposal of an interest of at least 5% in the business;
  • denied for disposals on or after 18 March 2015 of shares in certain companies that invest in joint venture companies, or are members of partnerships, but have no trade of their own.

Special purpose share schemes (‘B shares schemes’): returns on shares under schemes giving a choice between income and capital treatment to be treated as income, from 6 April 2015.

Bereavement support payments: exempt from income tax when introduced from April 2017.

Loss relief: restrictions on relief for miscellaneous losses from 3 December 2014, and limit on miscellaneous income against which a miscellaneous loss can be claimed from 6 April 2015.