INCOME TAX RATES
 2018/19 Rate 2017/18 Rate Note
Individuals – UK
Starting rate £1 – £5,000 20% £1 – £5,000 20% A, D
Basic rate £5,001 – £34,500 20% £5,001 – £33,500 20% B, C, D
Higher rate £34,501 – £150,000 40% £33,501 – £150,000 40% B, D
Additional rate Over £150,000 45% Over £150,000 45% B, D
Individuals – Scottish income tax
Starter rate £1 – £2,000 19% N/A D
Basic rate £2,001 – £12,150 20% £1 – £31,500 20% C, D
Intermediate rate £12,151 – £31,580 21% N/A D
Higher rate £31,581 – £150,000 41% £31,501 – £150,000 40% D
Top/Additional rate Over £150,000 46% Over £150,000 45% D
Trusts
Standard rate £1 – 1,000 20% £1 – 1,000 20% B
Trust rate Over £1,000 45% Over £1,000 45% B

A Rate on non-dividend savings income up to £5,000 is 0% where taxable non-savings income does not exceed £5,000.
B Dividend allowance at £2,000 (2017/18 £5,000) effectively taxed at 0% is available. Dividends above this limit are taxed at 7.5% for basic and standard rate taxpayers, 32.5% for higher rate taxpayers and 38.1% for additional and trust rate taxpayers.
C Basic rate band increased by gross Gift Aid donations and most personal pension contributions.
D Scottish income tax and rate bands apply to earned, pensions and property income of Scottish taxpayers. UK income tax rates and bands apply for other income, including savings and dividend income, of Scottish taxpayers.

INCOME TAX ALLOWANCES
2018/19 2017/18 Note
Basic personal allowance £11,850 £11,500 A, B
Married/civil partners allowance £8,695 £8,445 B, C
Minimum married/civil partners allowance £3,360 £3,260 B, C
Married/civil partners transferable allowance £1,185 £1,150 B
Income limit £28,900 £28,000
Blind persons allowance £2,390 £2,320
Rent a room limit £7,500 £7,500
Savings allowance £1,000 £1,000 D
Trading income £1,000 £1,000 E
Property income £1,000 £1,000 E

A Reduced by £1 for every £2 of income over £100,000.
B Non-residents may not be entitled to personal allowance, in certain circumstances.
C Available to persons born before 6 April 1935. Relief limited to 10%. Reduced to minimum allowance by £1 for every £2 over income limit. Apply personal allowance reduction first.
D £500 for higher rate and £nil for additional rate taxpayers.
E If gross income in excess of £1,000 a deduction of £1,000 instead of actual expenses is permitted’.
Note: High income child benefit charge: 1% of the benefit per £100 of adjusted net income over £50,000: 100% of the benefit when adjusted net income is over £60,000

PENSION CONTRIBUTIONS
2018/19 2017/18 Note
Annual allowance £40,000 £40,000 A
Lifetime allowance £1, 030,000 £1,000,000

A Up to the lower of 100% of earnings or the maximum contribution. Maximum contribution is the annual allowance plus unutilised allowances from the three previous tax years. Up to £3,600 may be contributed irrespective of earnings. Annual allowance reduced by £1 for every £2 income over £150,000 to a minimum of £10,000, and to £4,000 maximum if certain pension drawings made.

CAPITAL GAINS TAX
2018/19 2017/18 Note
Annual exemption:
Individuals £11,700 £11,300
Trusts £5,850 £5,650
Entrepreneurs’ relief: lifetime allowance £10m £10m
Investors’ relief: lifetime allowance £10m £10m
Individuals and trusts:
Basic and starting rate taxpayers 10% 10% A
Higher and additional rate taxpayers 20% 20% A
Trusts and personal representatives 20% 20% A
Rate where entrepreneurs’/investors’ relief applies 10% 10%

 

INHERITANCE TAX
2018/19 2017/18 Note
Nil rate band (NRB) £1 – 325,000 0% 0% A
Over £325,000 40% 40% B, C
Main exemptions: Gifts on marriage:
Annual gifts per donor £3,000 Parent £5,000
Small gifts per donee £250 Grandparent/ancestor £2,500
Normal expenditure out of income Exempt Other £1,000

A Additional residence nil rate band (RNRB) of £125,000 (2017/18 £100,000) for transfers of a main residence to direct descendants. NRB and RNRB for estate of surviving spouse are increased by unutilised percentage of NRB and RNRB of predeceased spouse. RNRB tapers away for estates over £2m.
B Some lifetime gifts are taxed at 20%.
C Tax rate reduced to 36% where 10% or more of net chargeable estate is left to charity.

NON DOMICILED REMITTANCE BASIS USERS
2018/19 2017/18
Personal allowance Nil Nil
Capital gains tax annual exemption Nil Nil
Capital gains tax rate (basic rate taxpayer: 10%) 20% 20%
Note: Gains on carried interest and chargeable residential property – 8% surcharge
Remittance basis charge
Unremitted income less than £2,000 Nil Nil
Resident in at least 7 of the previous 9 tax years £30,000 £30,000
Resident in at least 12 of the previous 14 tax years £60,000 £60,000

Note: From 6 April 2017, certain returning former UK domiciled individuals, and non-domiciled individuals who have been resident in the UK in at least 15 of the previous 20 tax years, will be treated as if UK domiciled for income tax, capital gains tax and inheritance tax purposes.

NATIONAL INSURANCE CONTRIBUTIONS
Class 1
Employer Employee
Earnings per week Rate payable Earnings per week Rate payable
 £0.01 – £162.00 Nil £0.01 – £162.00 Nil
 £162.01 – £892.00 13.80% £162.01 – £892.00 12%
 Over £892.00 13.80% Over £892.00 2%
Class 1A and 1B (employers only) 13.80%
Class 2 (self employed) £2.95 per week (small profits threshold £6,205)
Class 3 (voluntary) £14.65 per week
Class 4 (self-employed) Profits up to £8,424 0%
Profits from £8,424 to £46,350 9%
Profits above £46,350 per annum 2%

The first £3,000 of employer’s liability relieved by the employment allowance. No employers NIC for employees aged under 21 (and apprentices up to age 25) on earnings up to £892.00 per week (the Upper Earnings Limit). Apprenticeship Levy at 0.5% payable on annual pay bills in excess of £3m net of £15,000 annual allowance.

INDIVIDUAL SAVINGS ACCOUNTS
2018/19 2017/18
Cash and shares combined limit £20,000 £20,000
Lifetime ISA £4,000 £4,000
Junior ISA  £4,260 £4,128

Note: Help To Buy ISA – deposit limit £12,000, plus up to £200 per month.

TAX EFFICIENT SAVINGS AND INVESTMENTS
Maximum investment 2018/19 2017/18 Note
Seed enterprise investment scheme (SEIS) £100,000 £100,000 A, E
Venture capital trusts (VCTs) £200,000 £200,000 B
Enterprise investment scheme (EIS) £1m £1m B, D, E
Social investment tax relief £1m £1m B, C

A Income tax relief at 50%.
B Income tax relief at 30%.
C £1.5m for enterprises up to 7 years old.
D From 6 April 2018 up to £2m for “knowledge – intensive” companies.
E Capital gains tax deferral on gains reinvested in EIS and SEIS qualifying investments.

PROPERTY STAMP TAXES
Residential England & NI Scotland Wales
Price/premium payable SDLT LBTT LTT
£1 – £125,000 Nil Nil Nil
£125,001 – £145,000 2% Nil Nil
£145,001 – £180,000 2% 2% Nil
£180,001 – £250,000 2% 2% 3.50%
£250,001 – £325,000 5% 5% 5%
£325,001 – £400,000 5% 10% 5%
£400,001 – £750,000 5% 10% 7.50%
£750,001 – £925,000 5% 12% 10%
£925,001 – £1.5m 10% 12% 10%
Over £1.5m 12% 12% 12%

3% supplement to above rates for second properties and all purchases above £40,000 by corporates, discretionary and certain other trustees.
Enveloped properties in England and Northern Ireland above £500,000 at a flat 15% SDLT rate unless a relief available.
LTT in Wales introduced from 1 April 2018.
From 22 November 2017 first time buyer exemption from SDLT for purchases up to £300,000 and for the first £300,000 of purchases up to £500,000.
From 1 April 2018 first time buyer relief from LBTT for the first £175,000 of relevant property purchases.

Residential leases
England and Northern Ireland – 1% on present value of rents above £125,000,
nil in Wales and generally exempt in Scotland
Non residential/mixed use England & NI Scotland Wales
Price/premium payable SDLT LBTT LTT
0 – £150,000 Nil Nil Nil
£150,000 – £250,000 2% 3% 1%
£250,001 – £350,000 5% 3% 5%
£350,001 – £1m 5% 4.50% 5%
Over £1m 5% 4.50% 6%
Non residential/mixed leases

England and Northern Ireland – 1% on present value of rents £150,001 to £5m, 2% above £5m.
Scotland – 1% on present value of rents over £150,000.
Wales – 1% on present value of rents £150,000 to £2m, 2% above £2m.

ANNUAL TAX ON ENVELOPED DWELLINGS
Residential Property Value 2018/19 2017/18
£500,001 – £1m £3,600 £3,500
£1m – £2m £7,250 £7,050
£2m – £5m £24,250 £23,550
£5m – £10m £56,550 £54,950
£10m – £20m £113,400 £110,100
Over £20m £226,950 £220,350

Note: Gains on disposals of property within the Annual Tax on Enveloped Dwellings regime subject to capital gains tax at up to 28%.

CORPORATION TAX AND DIVERTED PROFITS TAX
2018/19 2017/18 Note
Corporation tax 19% 19%
Loans to participators 32.50% 32.50%
Restitution interest payments 45% 45% A
corporation tax rate
Diverted profits 25% 25% B

A Withheld at source.
Applies to profits of large entities diverted from the UK as a result of an avoided permanent establishment or transactions which lack economic substance.

PATENT BOX
2018/19 2017/18 Note
Effective rate of tax on qualifying profits 10% 10% A

A Nexus based regime operates from 1 July 2016. Previous regime available until 2012 if opt in election made for parents registered by 30 June 2016.

RESEARCH AND DEVELOPMENT TAX CREDITS
2018/19 2017/18 Note
SME enhanced deduction scheme 130% 130% A
SME cash credit for R&D loss surrendered 14.50% 14.50%
Large company above the line scheme credit 12% 11% B

A Additional (enhanced) tax deduction available for qualifying R&D expenditure.
B Taxable credit available on qualifying R&D expenditure. Rate increases to 12% from 1 January 2018.

CAPITAL ALLOWANCES
2018/19 2017/18 Note
Plant and machinery:
Annual investment allowance 100% 100% A
Long life assets and integral features 8% 8% B
Other assets 18% 18% B
First year allowances 100% 100% C
Cars: CO2 emissions (g/km)
50 of less (2017/18 75 or less) 100% 100%
51 to 110 (2017/18 76 to 130) 18% 18% B
Over 110 (2017/18 over 130) 8% 8% B

A Maximum AIA £200,000pa.
B Reducing balance.
C Available for research and development, enterprise zone (qualifying zones), energy-saving technologies including cars, water efficient technology, brand new zero-emission good vehicles and electrical charge-points from 23 November 2016 to 31 March 2019/5 April 2019.

VALUE ADDED TAX
2018/19 Note
Standard rate 20%
Reduced rate 5%
Annual turnover limit for registration £85,000 A
Annual cash accounting upper limit £1,350,000
EC Sales List reporting threshold Nil
Intrastat reporting
Arrivals threshold £1,500,000
Dispatches threshold £250,000

A Taxable turnover is measured by reference to the last 12 months or next 30 days.

STAMP DUTY
Consideration on shares over £1,000 0.50%
AUTHORISED MILEAGE RATES
Per mile
Private cars and vans: First 10,000 miles in the tax year 45p
Additional miles 25p
Each qualifying passenger 5p
Motor cycle 24p
Cycle 20p
 CAR AND FUEL SCALE BENEFITS
Car benefit: Percentage (see below) of list price
Fuel benefit: £23,400
CO2 emissions (g/km): Diesel Petrol
 0 – 50 17% 13%
51 – 75 20% 16%
76 – 94 23% 19%
Each additional 5 Further 1% Further 1%
Diesel 160 and over/Petrol 180 and over 37% 37%

Notes:
Benefit for Electric Vehicles 13%.
Diesel vehicles meeting RDE2 standards will be exempt from diesel supplement.

Pin It on Pinterest