2015/16 Income Tax Changes
The 2015/16 tax year begins on 6th April and some major tax changes will come into force on that date.
The tax-free personal allowance will increase from £10,000 to £10,600. Also this will be the first year people born between 6th April 1938 and 5th April 1948 to have the same allowance as working age people, as their allowance has only risen by £100.
The higher rate (40%) tax threshold is increasing to £42,385.
And the starting rate of Income Tax on savings will be cut from 10% to 0% on savings income of up to £5,000.
The new couple’s allowance means people who are married or in a civil partnership can transfer up to £1,060 of their tax-free allowance to their partner, but only if both partners do not pay more than the basic rate of Income Tax.