|
2018-2019 |
2017-2018 |
Basic Rate Band |
£34,500 |
£33,500 |
Basic rate |
20% |
20% |
Starting rate for savings-0% |
£5,000 |
£5,000 |
Higher rate – taxable income over |
£34,501-
£150,000 |
£33,501-
£150,00 |
Higher rate |
40% |
40% |
Additional rate – taxable income over |
Over
£150,001 |
Over
£150,001 |
Additional rate |
45% |
45% |
Dividend Allowance |
£2,000 |
£5,000 |
Dividend ordinary rate |
7.5% |
7.5% |
Dividend upper rate |
32.5% |
32.5% |
Dividend additional rate |
38.1% |
38.1%
|
There is 0% starting rate available only for savings income up to £5,000 (for 2017-18 a 0% starting rate available for savings income up to £5,000) |
Personal allowances (PA) |
|
2018-2019 |
2017-2018 |
born after 5 April 1948 |
£11,850 |
£11,500 |
born after 5 April 1938 but before 6 April 1948 |
£11,850 |
£11,500 |
born before 6 April 1938 |
£11,500 |
£11,850 |
Allowances are withdrawn at the rate of £1 for every £2 by which taxable income exceeds £100,000. |
Other Allowances |
|
Married couple’s allowance (MCA) –
either partner born before 6 April 1935 |
£835.50 |
£816.50 |
Transferable Marriage Allowance –
for spouses/civil partners born after 5 April 1935 and not liable to income tax above the basic rate |
£1,185 |
£1,150 |
Blind Person Allowance |
£2,320 |
£2,390 |
Personal savings Allowance
For Basic Rate tax payers |
£1,000 |
£1,000 |
Personal savings Allowance
For higher Rate tax payers |
£500 |
£500 |
Trading Allowance |
£1,000 |
£1,000 |
Property Allowance |
£1,000 |
£1,000 |
From 6th April 2016, the new personal Savings Allowance results in basic rate tax payers not paying on the first £1,000 of savings income they receive. Higher rate tax payers do not pay tax on the first £500 savings income; Trading allowance and Property Allowance are introduced on the 6th April 2017, the property allowance only valid when rent a room scheme is not applied. |
Withdrawal of allowances |
|
The age-related allowances are progressively withdrawn if income exceeds: |
personal allowances (born before 6 April 1948) |
£27,700 |
£27,000 |
Minimum PA |
£10,600 |
£10,000 |
Minimum MCA tax reduction |
£322 |
£314 |
There is a tax charge on child benefit for recipients whose income (or their partner’s) exceeds £50,000. The effect is tapered, so that the tax charge claws back the whole of the child benefit where income exceeds £60,000.
|
Tax Shelters |
|
2018-2019 |
2017-2018 |
Enterprise Investment Scheme up to |
£1,000,000* |
£1,000,000* |
|
|
|
Venture Capital Trust up to |
£200,000* |
£200,000* |
Seed Enterprise Investment Scheme up to |
£100,000** |
£100,000** |
* Income Tax Relief is given at 30% of the qualifying investment.
** Income Tax Relief is given at 50% of the qualifying investment. |
‘Rent a Room’ exempt on gross annual rent |
£7,500 |
£7,500 |
Pension Contributions |
2018-19 |
2017-18 |
Lifetime allowance |
£1,030,000 |
£1,000,000 |
Maximum annual contribution |
£40,000 |
£40,000 |
Tax on excess |
Marginal rate |
Marginal rate |
Normal minimum pension age |
55 |
55 |
Old State pension – per week** |
2018-19 |
2017-18 |
Single person |
£125.95 |
£122.30 |
Addition for wife if non-contributor |
£75.50 |
£73.30 |
New State Pension – per week |
2018-19 |
2017-18 |
Single person |
£163.00 |
£159.55 |
Pensions |
The maximum amount on which an individual can claim tax relief in any tax year is the greater of the individual’s UK relevant earnings or £3,600. If total pension input exceeds the annual allowance of £40,000 (for 2015-16) there is a tax charge on the excess linked to the individual’s highest marginal income tax rate. However, if the annual allowance is exceeded, it is possible to bring forward any unused annual allowance from the 3 previous tax years. |
Minimum age for taking benefits |
55 |
|
Lifetime allowance charge: |
|
|
applies to cumulative benefits exceeding £1,250,000* |
|
|
if paid as a lump sum
if paid as taxable income
Maximum tax-free lump sum |
55%
25%
25%* |
|
* unless any forms of previous transitional protection allow a higher amount |
ISA’s |
|
2018-2019 |
2017-2018 |
Cash and shares combined limit |
£20,000 |
£20,000 |
Junior ISA |
£4,260 |
£4,128 |
Lifetime ISA* |
£4,000 |
£4,000 |
Help to Buy ISA** |
NA |
NA |
* You can put in up to £4,000 each year, until you’re 50. The government will add a 25% bonus to your savings, up to a maximum of £1,000 per year.
** If you’re saving to buy your first home, the government will top up your savings by 25% (up to £3,000). If you’re buying with someone else, they can also get a Help to Buy ISA. |