Taxes

Tax Facts 2018/19

Income Tax Rates

Non-savings, non-dividend income - England, Wales, NI

2017/18

Band

2018/19

Band

Basic rate: 20%

£0 - £33,500  Basic rate: 20% £0 - £34,500

Higher rate: 40%

£33,501 - £150,000

 Higher rate: 40%

£34,501 - £150,000

Additional rate: 45%

Over £150,000

 Additional rate: 45%

Over £150,000

Non-savings, non-dividend income - Scotland

2017/18

Band

2018/19

Band

 

   Starter rate: 19% £0 - £2,000

Basic rate: 20%

£0 - £31,500

 Basic rate: 20%

£2,001 - £12,150

 

 

 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

 

2017/18

2018/19

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

2017/18

2018/19

Personal Allowance (PA)*

£11,500 £11,850

Married Couple's Allowance ø

Spouse/civil partner born before 6.4.1935 £8,445 £8,695

Minimum MCA

£3,260 £3,360

Blind person's allowance

£2,320

£2,390

Marriage Allowance**

£1,150

£1,190

PA income limit

£100,000 £100,000

MCA income limit

£28,000

£28,900

Dividend Allowance

£5,000

£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 9% to 37% for 2017/18 and 13% to 37% for 2018/19 – 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 £22,600 for 2017/18 and £23,400 for 2018/19.

 

Value Added Tax

 

From 1.4.2017

From 1.4.2018

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

2017/18

2018/19

Individuals & LPRs*

£11,300

£11,700

Trusts

£5,650

£5,850

* Legal personal representatives (LPRs) are entitled to the annual exemption in the tax year of death and the next two tax years.

Rates

2017/18

2018/19

Individual gains:

  • within available basic rate tax band
  • on the balance

 

10%*

20%*

 

 

10%*

20%*

 

Trustees' & LPRs' gains

20%*

20%*

Entrepreneurs' relief and investors' relief - in each case:

  • On first £10m lifetime gains
  • On the balance

 

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

2017/18

2018/19

Standard nil-rate band

£325,000

£325,000

Residence nil-rate band (available only on death, subject to conditions)

£100,000

£125,000

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:

  • Parent
  • Party to marriage / civil partnership or grandparent
  • Other

£5,000

£2,500

£1,000

 

Stamp Duty Land Tax

Residential Property (Not Scotland. Not Wales from 1.4.2018)

2017/18

2018/19

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%

From 1.4.2016, a 3% surcharge applies to additional residential properties worth £40,000 or more.

From 22.11.2017, 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

 

2017/18

2018/19

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

 

 

£159.35

£243.25

 

 

£163.00

£248.80

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)

£122.30

£125.95

Addition for spouse or civil partner p.w. £73.30 £75.50
New State Pension p.w. (reached SPA from 6.4.2016) £159.55 £164.35

* 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)

2017/18

Earnings p.w.

Employee

2018/19

Earnings p.w.

Employee

Below £157

Nil

Below £162

Nil

£157 - £866

12%

£162 - £892

12%

Over £866

2%

Over £892

2%

Class 1 Employers (Secondary)

2017/18

Earnings p.w.

Employer

2018/19

Earnings p.w.

Employer

Below £157

Nil

Below £162

Nil

£157 - £866

(U21s/apprentice U25s)

Nil

£162 - £892

(U21s/apprentice U25s)

Nil

Over £157 (otherwise)

13.8%

Over £162 (otherwise)

13.8%

Class 1A: Generally the employer rate on all benefits in kind is 13.8% for 2017/18 and 2018/19.

Employment Allowance reduces overall employer class 1 NICs by up to £3,000 for 2017/18 and 2018/19, subject to conditions.

Self Employed

   

2017/18

2018/19

Class 2

Flat rate =

 

If profits over -

£2.85 p.w

£148.20 p.a.

£6,025 p.a.

£2.95 p.w

£153.40 p.a.

£6,205 p.a.

Class 4

 

Rate =

on profits

 

9%

£8,164 - £45,000

Over £45,000

2%

9%

£8,424 - £46,350

Over £46,350

2%

Voluntary

   

2017/18

2018/19

Class 3

Flat rate =

£14.25 p.w.

£741.00 p.a.

£14.65 p.w.

£761.80 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

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

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 2017/18*

£20,000

ISA 2018/19*

£20,000

Junior ISA / Child Trust Fund 2017/18

£4,128

Junior ISA / Child Trust Fund 2018/19

£4,260

* 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 22nd November 2017 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.