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New tax rates and allowances for the 2014/15 tax year

New tax rates and allowances for the 2014/15 tax year

We believe it makes good sense to make the most of your ISA and Pension allowances as early as possible each tax year to maximise both the potential for investment gains, and the length of time your money is sheltered from the taxman.

So at the start of this tax year, here is a reminder of some of the new tax rates and allowances for the coming year:

Individual Savings Accounts (ISAs)

6 April 2014 - 30 June 2014

Increasing on
1 July by:

1 July 2014 -
5 April 2015

 

ISA allowance

 

 

£11,880

 

 

£3,120

to

£15,000

 

Comprising - cash up to

 

 

£5,940

 

 

£9,060

to

£15,000

 

Comprising - balance in
stocks and shares

 

 

£11,880

 

 

£3,120

to

£15,000

You can shelter £11,880 into your ISA allowance now and top this up to £15,000 from 1 July.

Junior Individual Savings Accounts (JISAs)

6 April 2014 – 30 June 2014

Increasing on     1 July by:

 

1 July 2014 –       5 April 2015



JISA allowance

£3,840

£160

to

£4,000


 

Pensions

2014/15

2013/14

Annual Allowance

£40,000

£50,000

Lifetime Allowance

£1,250,000

£1,500,000

For the 2014/15 tax year, you can pay into a pension a gross amount equal to your income, up to a maximum of £40,000. If you have contributed less than £50,000 gross in any of the previous three tax years, you can use carry forward rules to make an additional payment into your pension this year.

Other notable rule changes for this tax year include a reduction in the annual income required in order to enter ‘flexible drawdown’ from £20,000 to £12,000, whilst the maximum you can take from ‘capped drawdown’ has increased by 25%.

These are just a few of many changes announced in last month’s budget. You can view further information on pension rules and the Best SIPP and if you would like to discuss the changes in greater detail, our pensions experts are available on 020 7189 2400.

Income Tax Rates

2014/15

2013/14

Band (£)

Rate (%)

Band (£)

Rate (%)

Nil -2,880* (Savings rate)

10

Nil -2,790 (Savings rate)

10

Nil -31,865 (Basic)

20

Nil -32,010 (Basic)

20

31,866 – 150,000 (Higher)

40

32,011 – 150,000 (Higher)

40

Over 150,000 (Additional)

45

Over 150,000 (Additional)

45

The rates applicable for dividends are: 10% basic rate, 32.5% higher rate, 37.5% additional.

*Only applicable to dividends and savings income. The 10% rate is not available if taxable non-savings income exceeds £2,880.

The personal allowance for under-65s has increased from £9,440 to £10,000. The personal allowance for 65-74 year olds and those aged over 75 have been frozen at £10,500 and £10,660 respectively. There have also been increases to the married couples allowance and the age allowance income limit.

Capital Gains Tax - Individuals

2014/15

2013/14

Exemption

£11,000

£10,900

Standard Rate

18%

18%

Higher Rate*

28%

28%

* For Higher & Additional rate tax payers

Have you seen our online tools and calculators?

We have a range of useful online tools and calculators to help you manage your personal finances. The pension planning tool in particular provides a very useful guide to how much you need to be saving now in order to achieve the lifestyle you want in retirement.

The value of your investment can go down as well as up, and you can get back less than you originally invested.

The Bestinvest Online Investment Service, including any account analysis and investment reports provided by our guidance services, is an online execution-only dealing service for investors who want to make their own investment decisions. It does not provide advice on the suitability of products and investments; if you are unsure about the suitability of any investment you should seek professional advice. Clients of our Investment Advisory Service and Managed Portfolio Service can use the website to obtain current valuations of their investments but cannot trade on these accounts online and should call their adviser if they wish to discuss changes to their investments.

Past performance or any yields quoted should not be considered reliable indicators of future returns. Restricted advice can be provided as part of other services offered by Bestinvest, upon request and on a fee basis. Before investing in funds please check the specific risk factors on the key features document or refer to our risk warning notice as some funds can be high risk or complex; they may also have risks relating to the geographical area, industry sector and/or underlying assets in which they invest. Prevailing tax rates and relief are dependent on your individual circumstances and are subject to change.

Issued by Bestinvest (Brokers) Limited (Reg. No. 2830297), which is authorised and regulated by the Financial Conduct Authority. Financial services are provided by Bestinvest (Brokers) Limited and other companies in the Tilney Bestinvest Group, further details of which are available here. This site is for UK investors only.
© Tilney Bestinvest Group Ltd 2016.

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