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2018/19 Tax Rates and Allowances

Income tax
  2018/19 2017/18

Starting rate for savings only income 0%

£5,000 £5,000

Dividend Allowance 0%

£2000 £5000
Basic rate 20% (7.5% for dividends above £5,000) £34,500 £33,500
Higher rate 40% (32.5% for dividends)

£34,501 -

£150,000

£33,501 -

£150,000

Additional rate 45% (38.1% for dividends) £150,001+ £150,001+

Personal savings allowance - 0% for basic rate tax payers on £1000, £500 for higher rate tax payers.

20%, 40% and 45% 20%, 40% and 45%
Personal Allowances
  2018/19 2017/18
Everyone £11,850* £11,500*
 No longer a higher rate for older tax payers  

 

     
     
 
*Reduced by £1 for every £2 above income limit, but will not reduce below basic Personal Allowance unless income over £100,000

 

 

Pensions
   

Annual allowance

100% of net relevant earnings or £3,600 if higher

capped at:

£40,000

2017/18
Note:  Ability to utilise unused annual allowances of up to £40,000 for 2017, 2016 and 2015 if member of defined benefit or contribution scheme in previous 3 years.  Amount is tapered if adjusted annual income exceeds £150,000.  Money purchase annual allowance (if in drawdown) £4,000 (£10,000 in 2017)
Lifetime limit £1.03 million
 
Amounts exceeding lifetime limit taxed at 55% if extracted as a lump sum, or 25% if not
 
Inheritance Tax
Exempt transfers:
Gifts to UK domiciled spouse
Gifts to charity
Overseas domiciled spouse up to £325,000
Annual exemption £3,000
Small gifts £250
Wedding gifts - £5000 child, £2500 grandchild or remoter issue, £1000 other
Non UK assets held by a non domiciled individual
Nil rate band: £325,000 (16/17 £325,000)
Rate of tax at death 40%*
*36% where 10% of estate left to charity
Residence Nil Rate band £125,000 (previously £100,000)
Lifetime tax rate 20%
No tax on transfers to individuals unless death within 7 years
Reduced tax charge on gifts made when death is within 7 years
Years:
0-3 3-4 4-5 5-6 6-7
% taxable
100 80 60 40 20
Capital Gains Tax
  2018/19 2017/18
Individual Exemption
£11,700
£11,300
Chattels Exemption
£6,000
£6,000
Trusts exemption
£5,850
£5,650
Transfers between husband and wife living together are exempt.
Main Rate 20%^ 20%
Basic Rate 10%^ 10%
Entrepreneurs Rate* 10% 10%

* Available on first £10 million of eligible gains in lifetime

^ Does not apply to residential property which remains at 28% and 18%

 

Corporation Tax
Year commencing 1 April 2018 1 April 2017
   19%   19%
     
     
     
 
Main Capital Allowances
Motor cars (based on CO2 emissions)
Less than 75g/km CO2 - 100%;
75-130g/km CO2 - 18% rb;
More than 130g/km CO2 - 8% rb
 
Plant & Machinery * - 18% rb
Computer Equipment * - 18% of rb
 
Integral features - 8% rb
Goodwill - 4% on certain unconnected party transactions only
   

*Annual Investment Allowance - 100% allowance on certain capital expenditure up to £200,000pa

rb = reducing balance

 

Value Added Tax
Standard Rate
From 1st January 2017 20.00%
   
VAT fraction
From 1st January 2017 1/6
   
Turnover registration limit £85,000
Turnover deregistration limit £83,000
Cash/annual accounting registration limit £1.35m excl. VAT
Cash/annual accounting £1.6m excl. VAT
Flat rate scheme income £150,000 excl. VAT
Flat rate scheme income deregistration limit £230,000 incl. VAT
VAT Scale Charge: Now based upon the CO2 Emissions of the vehicle concerned
NI Contributions
2018/19
Class 1 Employer Employee
Weekly earnings % of all earnings
£0 - £116 NIL NIL
£117- 162 0.00% 0%
£163 - £892 13.80% 12%
Over £892 13.80% 2%
The above rates apply to those not contracted out of S2P.
Class 1A Employer 13.80%
Class 2* S/Employed £2.95 pw
Class 3 Voluntary £14.65 pw
Class 4 S/Employed  
  £0-£8,424 0%
  £8,425 - £46,350 9%
  Over £46,350 2%
* Payable on net earnings over £6,205 (17/18 £6,025)
Vehicle Benefits
Chargeable on employees and directors earning £8,500 or over (including benefits)
Car Benefit*: This is now calculated as a percentage of the original list price of the vehicle.

Car Fuel Benefit*: This is now calculated as a percentage of a fixed sum of £23,400.

* Percentage used will be dependent on the level of CO2 vehicle emissions
Van benefit per vehicle: £3,350 if there is any private use. Travel between home and work is no longer considered private use
Van Fuel Benefit: £633
 
Mileage Allowances
The maximum tax-free mileage allowances for employees using their own cars for business are as follows:
2018/19 First 10,000 Miles 10,000+ miles
Car & Van 45p 25p
Motorcycle 24p 24p
Bicycle 20p 20p
Notes: 1 Payments in excess of approved rates are taxable 2 Where payments are made at rates less than the approved rates, employees can claim tax relief on shortfall
 
Stamp Duty Land Tax

Residential Properties

Residential Properties where you are NOT a first-time buyer**

SDLT is charged at the following rates for each portion of the purchase price.

Property purchase price SDLT rate
Up to £125,000 0%
The next £125,000 (the portion from £125,001 to £250,000) 2%
The next £675,000 (the portion from £250,001 to £925,000) 5%
The next £575,000 (the portion from £925,001 to £1.5 million) 10%
The remaining amount (the portion above £1.5 million) 12%

SDLT is charged at a flat rate of 15% on residential properties costing more than £500,000 purchased by certain corporate bodies

NOTE - Add 3% to the above rates where it is an additional property.

** First-time buyers pay 0% on the first £300,000, 5% between £300,000 and £500,000. Property worth more than this is subject to normal SDLT rates above. 

 

 

Non-Residential or Mixed Use Property

SDLT is charged at the following rates for each portion of the purchase price.

Property purchase price SDLT rate
Up to £150,000 0%
The next £150,001 (the portion from £150,001 to £250,000) 2%
Above £250,000 5%
   

Leases

SDLT is charged at the following rates for each portion of the purchase price.

Net Present Value (NPV) of the lease

SDLT rate
Up to £150,000 0%
The next £4,850,000 (the portion from £150,001 to £5,000,000) 1%
Above £5 million 2%
   

 

Annual Tax on Enveloped Dwellings (ATED)

ATED may be payable annually on UK residential properties owned partly or wholly by certain corporate bodies, at the following rates:

Property value

 

2018/19
2017/18

Less than £500,000 0  0

£500,000 to £1 million

£3600 £3,500

Between £1 million and £2 million

£7,250 £7,050
Between £2 million and £5 million £24,250 £23,550
Between £5 million and £10 million £56,550 £54,950
Between £10 million and £20 million £113,400 £110,100
More than £20 million £226,950 £220,350