2017 tax allowances and reliefs

Tax allowances

Personal allowances deducted at the 20% standard rate
Additional personal allowance (also known as single parent allowance) (see note 1 below)	£1,500
Child Allowance Restricted by reference to the excess of child's investment income over £3,000 (see note 3)	£1,000 £1 for £1
Higher Child Allowance (see note 2) Restricted by reference to the excess of child's investment income over £3,000 (see note 3)	£6,000 £3 for £2

Personal allowances deducted at the 20% standard rate

Additional personal allowance (also known as single parent allowance) (see note 1 below)

£1,500

Child Allowance

Restricted by reference to the excess of child's investment income over £3,000 (see note 3)

£1,000

£1 for £1

Higher Child Allowance (see note 2)

Restricted by reference to the excess of child's investment income over £3,000 (see note 3)

£6,000

£3 for £2

Tax exemption thresholds

Exemption thresholds deducted using the marginal relief 26% calculation of tax
Single	£14,550
Married / civil partnership	£23,350
Single (aged 65 or over for the whole of the year)	£15,900
Married / civil partnership (aged 65 or over for the whole of the year)	£26,100

Additions to exemption thresholds
Second earner's allowance	£5,000
Child (see note 3)	£3,000
Child in further education (see notes 2 and 3)	£9,000
Single parent (see note 1)	£4,500
Childcare tax relief	£6,150 (max)
Enhanced childcare tax relief (pre-school age children)	£16,000 (max)
Qualifying mortgage interest relief	£13,500 (max)

Interest tax relief
Mortgage interest relief for your home is available at the marginal rate calculation of tax, but it's being phased out. Marginal relief calculation of personal tax Loan and mortgage interest tax relief

Benefit in kind deduction
A maximum deduction of £250 against the total of all benefits in the year of an employee or office holder

Notes

1) Additional personal (single parent) allowance is only due if the claimant:

is not entitled to the married/civil partnership exemption threshold (i.e. a single parent) or if the claimant's spouse/civil partner is totally incapacitated by physical or mental infirmity and;
is entitled to child allowance

2) A child who is over 17 years of age receiving full time higher education. 'Higher education' is defined in the Education (Jersey) Law 1999. Generally it means a university degree, however, other tertiary courses are accepted, for example a foundation degree or attending a recognised nurses training college. If you are not sure if the higher allowance is due, contact us with details of the course your child is attending and a prospectus of the college.

The allowance of £6,000 has been enhanced by an additional £3,000 for individuals who pay their tax at the marginal rate.

3) If a child has unearned income (from 2014 earned income is not taken into account) in their own right the amount must be included with the claim for child allowance. Once a child receives more than £3,000 unearned income in the year the child allowance will be restricted on a £1 for £1 basis if child allowance is claimed and £3 for every £2 if higher child allowance is claimed. For example, a child at school has investment income of £4,000 marginal rate child allowance of £3,000 will be reduced to £2,000. The higher allowance for a child at university with the same income will be reduced from £6,000 to £4,500.

Retirement annuity relief
The combined total paid into all pension schemes in the year of assessment whichever is the lower of: total pension contribution(s) £50,000 less any excess relevant earnings less any excess Claiming a deduction for your pension contributions

Retirement annuity relief

The combined total paid into all pension schemes in the year of assessment whichever is the lower of:

total pension contribution(s)
£50,000 less any excess
relevant earnings less any excess

Claiming a deduction for your pension contributions

Paying into an approved pension scheme is a deduction from your earnings both at the standard rate and using the marginal relief calculation of tax. Deductions are given for tax approved schemes only.

Motor expenses
Flat rate per mile: car	60p
Flat rate per mile: motorcycle	30p

Motor expenses can only be claimed when you use your own vehicle wholly and exclusively for work purposes. Mileage can not be included for commuting to and from work. To make a claim evidence is required, for example a letter from your employer, and also a written record of your mileage calculation.

2017 tax allowances and reliefs

Tax allowances

Tax exemption thresholds

Benefit in kind

Notes