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Tax Rates

INCOME TAX RATES
Income tax rates (other than savings and dividend income)
2018/19 2017/18
Band £ Rate % Band £ Rate %
0 - 34,500 20 0 - 33,500 20
34,501 - 150,000 40 33,501 - 150,000 40
Over 150,000 45 Over 150,000 45

Scotland income tax rates (savings and dividend income are taxed using UK rates and bands)

2018/19 2017/18
Band £ Rate % Band £ Rate %
0 - 2,000 19 0 - 31,500 20
2,001 - 12,150 20 31,501 - 150,000 40
12,151 - 31,580 21 Over 150,000 45
31,581 - 150,000 41
Over 150,000 46
Savings income 2018/19 and 2017/18
Starting rate for savings 0%
Starting rate limit for savings £5,000

£1,000 of savings income for basic rate taxpayers (£500 for higher rate) may be tax free.

Dividend income 2018/19 and 2017/18
Dividend ordinary rate 7.5%
Dividend upper rate 32.5%
Dividend additional rate 38.1%

The first £2,000 (£5,000) of dividends are tax free.

INCOME TAX RELIEFS
2018/19 2017/18
Personal allowance £11,850** £11,500**

(Reduce personal allowance by £1 for every £2 of adjusted net income over £100,000.)
**£1,185 (£1,150) may be transferable between certain spouses where neither pay tax above the basic rate.

Married couple's allowance (relief at 10%)* £8,695 £8,445
(Either partner 75 or over and born before 6 April 1935.)
- min. amount £3,360 £3,260
*Age allowance income limit £28,900 £28,000
(Reduce age allowance by £1 for every £2 of adjusted net income over £28,900 (£28,000).)
Blind person's allowance £2,390 £2,320
£
CAPITAL GAINS TAX
2018/19** 2017/18
Individuals
Exemption £11,700 £11,300
Standard rate 10% 10%
Higher rate* 20% 20%
Trusts
Exemption £5,850 £5,650
Rate 20% 20%
* For higher and additional rate taxpayers.
**Higher rates (18/28%) may apply to the disposal of certain residential property and carried interest.
Entrepreneurs' Relief and Investors' Relief
The first £10m of qualifying gains are charged at 10%. Gains in excess of the limit are charged at the rates detailed above.
INDIVIDUAL SAVINGS ACCOUNTS
2018/19 2017/18
Overall investment limit £20,000 £20,000
Junior account limit £4,260 £4,128
NATIONAL INSURANCE
2018/19 Class 1 (employed) rates
Employee Employer**
Earnings per week % Earnings per week** %
Up to £162 Nil* Up to £162 Nil
£162.01 - £892 12 Over £162 13.8**
Over £892 2
*Entitlement to contribution-based benefits retained for earnings between £116 and £162 per week.
**The rate is 0% for employees under 21 and apprentices under 25 on earnings up to £892 per week.
Class 1A (employers) 13.8% on employee taxable benefits
Class 1B (employers) 13.8% on PAYE Settlement Agreements
Class 2 (self-employed) flat rate per week £2.95
small profits threshold £6,205 p.a.
Class 3 (voluntary) flat rate per week £14.65
Class 4 (self-employed) 9% on profits between £8,424 and £46,350 plus 2% on profits over £46,350
INHERITANCE TAX
Death rate Lifetime rate Chargeable transfers 2018/19 and 2017/18
Nil Nil 0 - £325,000 (nil rate band)
40% 20% Over £325,000
A further nil rate band of £125,000 (£100,000) may be available in relation to current or former residences. Nil rate bands of surviving spouses/civil partners may be increased by unused nil rate bands of deceased spouses/civil partners.
Reliefs
Annual exemption £3,000 Marriage - parent £5,000
Small gifts £250 - grandparent £2,500
- bride/groom £2,500
- other £1,000
Reduced charge on gifts within seven years of death
Years before death 0-3 3-4 4-5 5-6 6-7
% of death charge 100 80 60 40 20
CAR, VAN AND FUEL BENEFITS
Company cars 2018/19
CO2 emissions (gm/km) (round down to nearest 5gm/km) % of car's list price taxed
0-50 13
51-75 16
76-94 19
for every additional 5* additional 1%
180 and above* up to 37% (max.)
For diesel cars generally add a 4% supplement (unless the car is registered on or after 1 September 2017 and meets the Euro 6d emissions standard) but the maximum is still 37%. The list price includes accessories and is not subject to an upper limit. The list price is reduced for capital contributions made by the employee up to £5,000. Special rules may apply to cars provided for disabled employees.

*If the CO2 figure does not end in a 5 or 0 round down to the nearest 5 or 0.

Car fuel benefit 2018/19
£23,400 x 'appropriate percentage'*
*Percentage used to calculate the taxable benefit of the car for which the fuel is provided. The charge does not apply to certain environmentally friendly cars. The charge is proportionately reduced if provision of private fuel ceases part way through the year. The fuel benefit is reduced to nil only if the employee pays for all private fuel.
Van benefit per vehicle 2018/19
Van benefit £3,350 Fuel benefit £633
The charges do not apply to vans if a 'restricted private use condition' is met throughout the year. A reduced charge may be due if the van cannot in any circumstances emit CO2 by being driven.
MILEAGE ALLOWANCE PAYMENTS
2018/19 and 2017/18
Cars and vans Rate per mile
Up to 10,000 miles 45p
Over 10,000 miles 25p
Bicycles 20p
Motorcycles 24p
These rates represent the maximum tax free mileage allowances for employees using their own vehicles for business. Any excess is taxable. If the employee receives less than the statutory rate, tax relief can be claimed on the difference.
CAPITAL ALLOWANCES
Plant and machinery - Annual Investment Allowance (AIA)

The AIA gives a 100% write-off on most types of plant and machinery costs, including integral features and long life assets but not cars, of up to £200,000 p.a. Any costs over the AIA fall into the normal capital allowance pools below. The AIA may need to be shared between certain businesses under common ownership.

Other plant and machinery allowances - The annual rate of allowance is 18%. An 8% rate applies to expenditure incurred on integral features and on long life assets. A 100% first year allowance may be available on certain energy efficient plant and cars.

Cars - For expenditure incurred on cars, costs are generally allocated to one of the two plant and machinery pools. Cars with CO2 emissions not exceeding 130gm/km receive an 18% allowance p.a. Cars with CO2 emissions over 130gm/km receive an 8% allowance p.a. The emissions gure is reduced to 110gm/km for expenditure incurred on or after 1 April 2018.

STATUTORY PAY RATES
Weekly benefit 2018/19 2017/18
Basic retirement - single person £125.95 £122.30
pension - married couple £201.45 £195.60
New state pension £164.35 £159.55
Statutory pay rates - average weekly earnings £116(£113) or over
Statutory Sick Pay £92.05 £89.35
Statutory Maternity and - first six weeks 90% of weekly earnings
Adoption Pay - next 33 weeks £145.18* £140.98*
Statutory Paternity Pay - two weeks £145.18* £140.98*

*Or 90% of weekly earnings if lower.

VALUE ADDED TAX
Standard rate 20%
Reduced rate 5%
Annual Registration Limit-from 1.4.18 (1.4.17 - 31.3.18 £85,000) £85,000
Annual Deregistration Limit-from 1.4.18 (1.4.17 - 31.3.18 £83,000) £83,000
CORPORATION TAX
Year to 31.3.19 Year to 31.3.18
Profits band £ Rate % Profits band £ Rate %
All profits 19 All profits 19

Different rates apply for ring-fenced (broadly oil industry) profit.

PENSION PREMIUMS
2018/19
Tax relief available for personal contributions: higher of £3,600 (gross) or 100% of relevant earnings (max. £40,000). Any contributions in excess of £40,000, whether personal or by the employer, may be subject to income tax on the individual. The £40,000 limit may be reduced where ‘adjusted income’ exceeds £150,000. The limit may be reduced to £4,000 once money purchase pensions are accessed. Where the £40,000 limit is not fully used it may be possible to carry the unused amount forward for three years. Employers will obtain tax relief on employer contributions if they are paid and made ‘wholly and exclusively’.
STAMP DUTY AND STAMP DUTY LAND TAX
Land and buildings in England, Wales and N. Ireland
Rate Residential Non-residential Rate 
% £ £ %
0 0 - 125,000 0 - 150,000 0
2 125,001 - 250,000 150,001 - 250,000 2
5 250,001 - 925,000 Over 250,000 5
10 925,001 - 1,500,000
12 Over 1,500,000

Shares and securities - rate 0.5%.


Disclaimer: Rates are for guidance only. No responsibility for loss occasioned by any person acting/refraining from action as a result of this information can be accepted by the authors or firm.