Tax Tables and Rates 2018.

Income Tax

Rates and bands (other than savings and dividend income)

Band £ (19/20)Rate % (19/20)Band £ (18/19)Rate % (18/19)
0 - 37,500200 - 34,50020
37,501 - 150,00040 34,501 - 150,00040
Over 150,00045Over 150,00045

Income tax rates in Scotland and Wales on income other than savings and dividend income have been devolved.

Savings income2019/20 and 2018/19
Savings allowance basic rate£1,000
Savings allowance higher rate£500

A starting rate of 0% may be available unless taxable non-savings income exceeds £5,000.

Dividend income2019/20 and 2018/19
Dividend allowance£2,000
Dividend ordinary rate7.5%
Dividend upper rate32.5%
Dividend additional rate38.1%

Income Tax Reliefs

2019/202018/19
Personal allowance£12,500£11,850
Personal allowance income limit£100,000£100,000
Marriage allowance£1,250£1,190
Married couple’s allowance£8,915£8,695
- minimum amount £3,450£3,360
- income limit£29,600£28,900
Blind person’s allowance£2,450£2,390

Individual Savings Accounts

2019/202018/19
Overall investment limit£20,000£20,000
Junior account investment limit£4,368£4,260

Devolved Income Tax

Scotland rates and bands

Band £ (19/20)Rate % (19/20)Band £ (18/19)Rate % (18/19)
0 - 2,049 19 0 - 2,00019
2,050 - 12,444202,001 - 12,15020
12,445 - 30,9302112,151 - 31,58021
30,931 - 150,0004131,581 - 150,00041
Over 150,00046Over 150,00046

Wales rates and bands Introduced from 6 April 2019.

Band £ (19/20)Rate % (19/20)Band £ (18/19)Rate % (18/19)
0 - 37,500200 - 34,50020
37,501 - 150,0004034,501 - 150,00040
Over 150,00045Over 150,00045

Capital Gains Tax

2019/202018/19
Individuals
Exemption£12,000£11,700
Standard rate10%10%
Higher/additional rate20%20%
Trusts
Exemption£6,000£5,850
Rate20%20%

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.

Inheritance Tax

Death rateLifetime rateChargeable transfers 2019/20 and 2018/19
NilNil0 - £325,000 (nil rate band)
40%20%Over £325,000

A further nil rate band of £150,000 (£125,000 for 2018/19) may be available in relation to current or former residences.

Car, Van, and Fuel Benefits

Company cars 2019/20

CO2 emissions g/kmPercentage of car’s list price taxed
0-5016
51-7519
76-9422
for every additional 5additional 1%
165 and above37% (maximum)

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%. For emissions over 94g/km if the CO2 figure does not end in a 5 or 0 round down to the nearest 5 or 0.

2019/20
Car fuel benefit£24,100
Van benefit£3,430
Van fuel benefit£655
Cars and vans mileage allowanceRate per mile
Up to 10,000 miles45p
Over 10,000 miles25p

National Insurance

2019/20 Class 1 (employed) rates

EmployeeEmployer
Earnings per week%Earnings per week%
Up to £166NilUp to £166Nil
£166.01 - £96212Over £16613.8
Over £9622

Entitlement to contribution-based benefits for employees retained for earnings between £118 and £166 per week.

The employer rate is 0% for employees under 21 and apprentices under 25 on earnings up to £962 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 £3.00
small profits threshold £6,365 per annum
Class 3 (voluntary)flat rate per week £15.00
Class 4 (self-employed)9% on profits between £8,632 and £50,000 plus 2% on profits over £50,000

Selected Rates

2019/202018/19
Weekly benefit££
Basic State Pension129.20125.95
New State Pension168.60164.35
Statutory pay standard rates
- average weekly earnings £118 (£116) or over
Sick Pay94.2592.05
Maternity/Adoption Pay148.68145.18
Shared Parental Pay148.68145.18
Paternity Pay148.68145.18

National Living Wage and National Minimum Wage

AgeNLW21-2418-2016-17Apprentices
From 1 April 2019£8.21£7.70£6.15£4.35£3.95

Applies to apprentices under 19, or 19 and over in the first year of apprenticeship. NLW applies to those aged 25 and over.

Tax Reliefs for Individuals

2019/20 and 2018/19

Enterprise Investment Scheme (EIS)

Relief on investments in certain unquoted trading companies up to £1m per annum (£2m for knowledge intensive companies):

  • Income tax relief at 30%
  • Capital gains exemption on disposal

Unlimited amounts of capital gains from the disposal of other assets may be able to be deferred by making an EIS investment.

Seed Enterprise Investment Scheme (SEIS)

Relief on investments in certain unquoted trading companies up to £100,000 per annum:

  • Income tax relief at 50%
  • Capital gains exemption on disposal

Capital gains from the disposal of other assets may be exempt up to £50,000 per annum by making an SEIS investment.

Venture Capital Trusts (VCTs)

Relief on investments in certain quoted companies up to £200,000 per annum:

  • Income tax relief at 50%
  • Capital gains exemption on disposal

Dividends received from VCTs may be exempt from income tax.
All reliefs subject to detailed conditions being met.

Corporation Tax

Rate %Rate %
Year to 31.3.2019Year to 31.3.1919

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

Capital Allowances

First Year Allowance (FYA) on certain energy-efficient plant, machinery and cars up to 50g/km100%
Annual Investment Allowance (AIA) from 1 January 2019 £1,000,000 (£200,000)
Excludes cars and expenditure already qualifying for FYA
Writing Down Allowance
Expenditure not qualifying for AIA or FYA:
Long-life assets, integral features of buildings, cars over 110g/km. Rates reduced from April 2019.6% (8%)
Other plant and machinery18%
Structures and Buildings Allowance
From 29 October 2018 straight-line basis2%

Pensions

2019/202018/19
Lifetime Allowance limit£1,055,000£1,030,000
Annual Allowance limit£40,000£40,000
Money Purchase Annual Allowance£4,000£4,000

Value Added Tax

From 1.4.19From 1.4.18
Standard rate20%20%
Reduced rate5%5%
Annual Registration Limit£85,000£85,000
Annual Deregistration Limit£83,000£83,000

Property Taxes

Across the whole of the UK, residential rates may be increased by 3% (4% in Scotland) where further residential properties are acquired.

Stamp Duty Land Tax
Land and buildings in England and N. Ireland

Residential Band £Rate %Non-residential Band £Rate %
0 - 125,0000 0 - 150,0000
125,001 - 250,0002150,001 - 250,0002
250,001 - 925,0005Over 250,0005
925,001 - 1,500,00010
Over 1,500,00012

First-Time Buyer relief may apply to residential purchases up to £500,000.

Land and Buildings Transaction Tax
Land and buildings in Scotland

Residential Band £Rate %Non-residential Band £Rate %
0 - 145,00000 - 150,0000
145,001 - 250,0002150,001 - 250,0001
250,001 - 325,0005Over 250,0005
325,001 - 750,00010
Over 750,00012

First-Time Buyer relief may apply on the first £175,000 of residential purchases.

Land Transaction Tax
Land and buildings in Wales

Residential Band £Rate %Non-residential Band £Rate %
0 - 180,00000 - 150,0000
180,001 - 250,0003.5150,001 - 250,0001
250,001 - 400,0005250,001 - 1,000,0005
400,001 - 750,0007.5Over 1,000,0006
750,001 - 1,500,00010
Over 1,500,00012

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.