Tax rates and reliefs

2018/19 Taxable Income

Income

Rate

Dividend

Rate

Starting Savings Rate * 0-5,000 0% 0%
Basic Rate 0-34,500 20% 7.5%
Higher Rate 34,01-150,000 40% 32.5%
Additional Rate >150,000 45% 38.1%

Child Benefit charge from 7/1/2013 is 1% of benefit for each £100 of income for the tax year between £50,000-£60,000

* A 0% rate applies to savings income falling within the personal savings allowance.  Income taxable at the starting rate for savings does not fall within the personal savings allowance.

2017/18 Taxable Income

Income

Rate

Dividend

Rate

Starting Savings Rate ** 0-5,000 0% 0%
Basic Rate 0-33,501 20% 10%
Higher Rate 33,501-150,000 40% 32.5%
Additional Rate >150,000 45% 38.1%

** The starting savings rate only applies to savings income. If an individual’s taxable non-savings income is above the starting rate limit the 0% starting rate will not apply.

Income Tax Reliefs 2018/19 2017/18
 Personal Allowance – general 11,850 11,500
 Dividend Allowance 5,000 5,000

 Personal Savings Allowance

–  Basic Rate taxpayers

– Higher Rate taxpayers

 

1,000

500

 

1,000

500

(For 2014/15 and 2015/16 reduce PA by £1 for every £2 adjusted net income over £100,000)
 Married Couple’s Allowance (relief 10%) 75+  8,695  8,445
 Married Couple’s Allowance (relief 10%) minimum amount  3,360  3,260
 Age Allowance Income Limit – (reduce allowance by £1 for every £2 of adjusted net income over threshold)  N/A  N/A

Further Tax Rates

Corporation Tax Rates Year to 31.3.19 Year to 31.3.18
Small Company rate (£0 – £300,000) 19% 19%
Main rate (> £1,500,000) 19% 19%
Effective marginal rate (£300,001-£1,500,000) 19% 19%
Capital Gains Tax 2018/19 2017/18 
Annual exemption 11,700 11,300
Value Added Tax 2018/19 2017/18
VAT Registration Threshold 85,000 85,000
Inheritance Tax 2018/19    2017/18
Rate 40% 40%
Nil Rate Band/Residential NRB 325,000/125,000 325,000/100,000
2018/19 2017/18
Max Personal Pension Contribution 40,000 40,000