Taxes
Tax Facts 2018/19
Income Tax Rates
Non-savings, non-dividend income - England, Wales, NI
|
2018/19 |
Band |
2019/20 |
Band |
|---|---|---|---|
|
Basic rate: 20% |
£0 - £34,500 | Basic rate: 20% | £0 - £37,500 |
|
Higher rate: 40% |
£34,501 - £150,000 |
Higher rate: 40% |
£37,501 - £150,000 |
|
Additional rate: 45% |
Over £150,000 |
Additional rate: 45% |
Over £150,000 |
Non-savings, non-dividend income - Scotland
|
2018/19 |
Band |
2019/20 |
Band |
|---|---|---|---|
|
Starter rate 19% |
£0 - £2,000 | Starter rate: 19% | £0 - £2,000 |
|
Basic rate: 20% |
£0 - £31,500 |
Basic rate: 20% |
£2,001 - £12,150 |
|
Intermediate rate: 21% |
£12,51- £31,580 |
Intermediate rate: 21% |
£12,151 - £31,580 |
|
Higher rate: 40% |
£31,501 - £150,000 |
Higher rate: 41% |
£31,581 - £150,000 |
|
Additional rate: 45% |
Over £150,000 |
Top rate: 46% |
Over £150,000 |
Savings and dividend income - UK
|
|
2018/19 |
2019/20 |
|---|---|---|
|
Savings income - basic rate |
20%* | 20%* |
|
Savings income - higher rate |
40% |
40% |
|
Savings income - additional rate |
45% |
45% |
| Dividends - basic rate | 7.5% | 7.5% |
| Dividends - higher rate | 32.5% | 32.5% |
| Dividends - additional rate | 38.1% | 38.1% |
* 0% starting rate on up to £5,000 of savings income for 2017/18 and 2018/19. Not available if non-savings/non-dividends income exceeds this limit.
Trusts Standard Rate band £1,000
Income Tax Allowances - UK
|
Allowances |
|
2018/19
|
2019/20 |
|---|---|---|---|
|
Personal Allowance (PA)* |
£11,850 | £12,500 | |
|
Married Couple's Allowance ø |
Spouse/civil partner born before 6.4.1935 | £8,695 | £8,915 |
|
Minimum MCA |
£3,360 | £3,450 | |
|
Blind person's allowance |
£2,390 |
£2,450 |
|
|
Marriage Allowance** |
£1,190 |
£1,250 |
|
|
PA income limit |
£100,000 | £100,000 | |
|
MCA income limit |
£28,900 |
£29,600 |
|
|
Dividend Allowance |
£2,000 |
£2,000 |
|
|
Personal Savings Allowance |
Basic rate tax taxpayers
Higher rate taxpayers |
£1,000
£500 |
£1,000
£500 |
* PA reduces by £1 for every £2 of adjusted net income exceeds PA income limit.
ø MCA relief at 10% if at least one spouse/civil partner born before 6.4.1935. Reduces by £1 for every £2 adjusted net income exceeds MCA income limit, but not below minimum.
** One spouse/civil partner can transfer up to 10% of their PA to the other, provided neither is liable to tax above the basic rate.
Company Car Benefit
The tax charge is calculated as a percentage – ranging from 13% to 37% for 2018/19 and 16% to 37% for 2019/20 – which is determined by the CO2 emissions figure for the car. For diesel cars, there is an extra charge of up to 3% in 2017/18 and 4% in 2018/19 subject to a maximum of 37%.
Car Fuel Benefit
The tax charge is calculated using the same percentage as the company car charge (as above) applied to a set figure of £23,400 for 2018/19 and £24,100 for 2019/20.
Value Added Tax
|
From 1.4.2018 |
From 1.4.2019 |
|
|---|---|---|
|
Standard rate |
20% |
20% |
|
Registration level |
£85,000 |
£85,000 |
|
De-registration level |
£83,000 |
£83,000 |
Corporation Tax
|
Year to 31.3.2018 |
Year to 31.3.2019 |
|
|---|---|---|
|
All taxable profits |
19% |
19% |
Capital Gains Tax
|
Exemptions |
2018/19 |
2019/20 |
|---|---|---|
|
Individuals & LPRs* |
£11,700 |
£12,000 |
|
Trusts |
£5,850 |
£6,000 |
* Legal personal representatives (LPRs) are entitled to the annual exemption in the tax year of death and the next two tax years.
|
Rates |
2018/19 |
2019/20 |
|---|---|---|
|
Individual gains:
|
10%* 20%*
|
10%* 20%*
|
|
Trustees' & LPRs' gains |
20%* |
20%* |
|
Entrepreneurs' relief and investors' relief - in each case:
|
10% 10%/20%*
|
10% 10%/20%*
|
| Companies' gains charged at corporation tax rate. Indexation allowance is frozen for disposals from 1st January 2018. |
* 18% & 28% rates apply to residential property (not covered by principal private residence relief) and carried interest.
Inheritance Tax
|
Chargeable transfers |
2018/19 |
2019/20 |
|||
|---|---|---|---|---|---|
|
Standard nil-rate band |
£325,000 |
£325,000 |
|||
|
Residence nil-rate band (available only on death, subject to conditions) |
£125,000 |
£150,000 | |||
|
Tax on excess value of chargeable transfer on death and lifetime transfers made within 7 years of death |
40% |
40% |
|||
|
Tax on excess value for chargeable transfers on death where 10% or more of net estate left to charity |
36% |
36% | |||
|
Tax on excess value for other chargeable lifetime transfers |
20% |
20% |
|||
|
Reduced tax charge on gifts within 7 years before death |
|||||
|
Years before death |
0-3 |
3-4 |
4-5 |
5-6 |
6-7 |
|
% of death charge |
100 |
80 |
60 |
40 |
20 |
|
Main exemptions |
|||||
|
Gifts to charities (EU & specified countries) |
Unlimited |
||||
|
Gifts between UK domiciled spouses |
Unlimited |
||||
|
Annual |
£3,000 |
||||
|
Small gifts to any one person |
£250 |
||||
|
Gifts on marriage / civil partnership from:
|
£5,000 £2,500 £1,000 |
||||
Stamp Duty Land Tax
|
Residential Property (Not Scotland. Not Wales) |
2018/19 |
2019/20 |
|---|---|---|
|
The part of the purchase price falling within: £0 - £125,000 |
0% |
0% |
|
£125,001 - £250,000 |
2% |
2% |
|
£250,001 - £925,000 |
5% |
5% |
|
£925,001 - £1,500,000 |
10% |
10% |
| Over £1,500,000 | 12% | 12% |
A 3% surcharge applies to additional residential properties worth £40,000 or more.
Eligible first time buyers pay 0% SDLT on first £300,000 of purchase price and 5% on £301,000 to £500,000. Normal rates apply to properties worth more than £500,000.
SDLT is charged at 15% on properties worth over £500,000 purchased in corporate envelopes.
Land & Buildings Transaction tax
Land & Buildings Transaction Tax applies in Scotland. For more information including rates and bands see:
www.revenue.scot/land-buildings-transaction-tax
Land Transaction Tax
Land Transaction Tax applies in Wales from 1st April 2018. For more information including rates and bands see:
http://beta.gov.wales/land-transaction-tax-guide
Main Due Dates for Tax Payment
Income Tax
Interim payments: 31 January during the tax year and
31 July following the end of the tax year.
Final payment: 31 January following the end of the tax year.
Capital Gains Tax
Normally, 31st January following the end of the tax year.
Inheritance Tax
Death: Normally 6 months after the end of the month of death.
Lifetime transfer: 6 months after the end of the month of the transfer .
Corporation Tax
Taxable profits up to £1.5 million: 9 months and 1 day after the end of the accounting period.
Taxable profits of more than £1.5 million: 14th day of months 7, 10, 13, and 16 after the start of a 12 month accounting period.
Social Security Benefits
|
2018/19 |
2019/20 |
|
|---|---|---|
|
Child Benefit p.w*. - First child - Other children |
£20.70 £13.70 |
£20.70 £13.70 |
|
Pension Credit - Standard Minimum Income Guarantee p.w. - Single person - Couple |
£163.00 £248.80 |
£167.25 £255.25 |
|
Jobseeker's Allowance p.w. age 25 and over |
Up to £73.10 for single person |
Up to £73.10 for single person |
|
State Pension p.w.(reached SPA by 5.4.2016) |
£125.95 |
£129.20 |
| Addition for spouse or civil partner p.w. | £75.50 | £77.45 |
| New State Pension p.w. (reached SPA from 6.4.2016) | £164.35 | £168.60 |
* Child benefit is reduced by 1% for every £100 of income over £50,000 where the recipient or their spouse/civil partner/cohabitee has adjusted net income over £50,000.
National Insurance Contributions
Class 1 Employees (Primary)
|
2019/20 Earnings p.w. |
Employee |
2019/20 Earnings p.w. |
Employee |
|---|---|---|---|
|
Below £162 |
Nil |
Below £166 |
Nil |
|
£162 - £892 |
12% |
£166 - £962 |
12% |
|
Over £892 |
2% |
Over £962 |
2% |
Class 1 Employers (Secondary)
|
2018/19 Earnings p.w. |
Employer |
2019/20 Earnings p.w. |
Employer |
|---|---|---|---|
|
Below £162 |
Nil |
Below £166 |
Nil |
|
£162 - £892 (U21s/apprentice U25s) |
Nil |
£166 - £962 (U21s/apprentice U25s) |
Nil |
|
Over £162 (otherwise) |
13.8% |
Over £166 (otherwise) |
13.8% |
Class 1A: Generally the employer rate on all benefits in kind is 13.8% for 2018/19 and 2019/20.
Employment Allowance reduces overall employer class 1 NICs by up to £3,000 for 2018/19 and 2019/20, subject to conditions.
Self Employed
|
2018/19 |
2019/20 |
||
|---|---|---|---|
|
Class 2 |
Flat rate =
If profits over - |
£2.95 p.w £153.40 p.a. £6,205 p.a. |
£3.00 p.w £156.00 p.a. £6,365 p.a. |
|
Class 4 |
Rate = on profits
|
9% £8,424 - £46,350 Over £46,350 2% |
9% £8,632 - £50.000 Over £50,000 2% |
Voluntary
|
2017/18 |
2018/19 |
||
|---|---|---|---|
|
Class 3 |
Flat rate = |
£14.65 p.w. £761.80 p.a. |
£15.00 p.w. £780.00 p.a. |
Pensions - Maximum Contributions Limit
The maximum amount of contributions on which a member can claim tax relief in any tax year is the greater of:
- the 'basic amount' - currently £3,600 gross, and
- the amount of the individual's relevant UK earnings that are chargeable to income tax for the year.
Lifetime Allowance
|
Tax Year |
Amount |
|
|---|---|---|
|
2010/11 to 2011/12 |
£1.8 million |
|
|
2012/13 to 2013/14 |
£1.5 million |
|
|
2014/15 to 2015/16 |
£1.25 million |
|
|
2016/17 to 2017/18 |
£1 million |
|
|
2018/19 |
£1.03 million |
£1.055 million |
Lifetime Allowance Charge (on excess): 55% on excess paid as a lump sum and 25% on excess designated for drawdown, annuity or scheme pension.
Annual Allowance
| Tax Year |
AA Amount |
MPAA Amount |
|---|---|---|
|
2014/15 |
£40,000 |
n/a |
|
2015/16 |
£40,000 * |
£10,000 * |
|
2016/17 |
£40,000 # |
£10,000 |
|
2017/18 |
£40,000 # |
£4,000 |
|
2018/19 |
£40,000 # |
£4,000 |
|
2019/20
|
£40,000 # |
£4,000 |
Annual Allowance Charge: marginal income tax rate on excess.
Carry forward of up to 3 years unused annual allowance available.
Money Purchase Annual Allowance (MPAA): applies with no carry forward to money purchase pensions once flexible pension income taken from 2015/16.
* Special provisions apply to 2015/16, in connection with aligning all Pension Input Periods to tax years from 2016/17.
# Tapered by £1 for every £2 of ‘adjusted income’ over £150,000 to a minimum of £10,000 if ‘threshold income’ is also over £110,000.
ISA Limits
|
|
Overall Limit |
|---|---|
|
ISA 2018/19* |
£20,000 |
|
ISA 2019/20* |
£20,000 |
|
Junior ISA / Child Trust Fund 2018/19 |
£4,260 |
|
Junior ISA / Child Trust Fund 2019/20 |
£4,368 |
* Eligible savers can contribute up to £4,000 of the overall ISA limit to a Lifetime ISA.
Since 6.4.2015, the spouse/civil partner of deceased ISA saver (who died on/after 3.12.2014) has an additional ISA allowance equal to the value of the deceased’s ISA(s) at the date of death.
This information is based on our understanding of the Chancellor’s 29nd October 2018 Autumn Budget proposals.
It must be remembered that the Chancellor’s proposals could change during the passage of the Finance Bill.
Every care has been taken to ensure that this information is correct and in accordance with our understanding of the law and HM Revenue & Customs practice, which may change. However, independent confirmation should be obtained before acting or refraining from acting in reliance upon the information given.
References to legislation, taxation and tax rates are based on Outhwaite & Chavda Limited's understanding of law and HM Revenue and Customs practice at the date of publication. These may change in the future. Tax rates and reliefs can also change. The value of tax reliefs to the investor depends on their financial circumstances. Outhwaite & Chavda Limited is not responsible for any arrangements entered into on the basis of the information in this document.