Tax-Free Allowances Increase from Today

money UKToday is the start of the new 2015/16 tax year in the UK and all tax-free personal allowances are increasing thanks to the Conservative led Government.

The tax-free personal allowances are increasing from £10,000 to £10,600.  This will also be the first year people born between 6th April 1938 and 5th April 1948 will 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 don’t pay more than the basic rate of income tax.

Also, the married couple’s allowance, which is only available if one partner was born before 6th April 1935, is increased to a maximum of £8,355 and a minimum of £3,220.

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