TAX FACTS 2017/2018

Allowances and Reliefs

 

£ (GBP)

Personal allowance for people born after 5 April 1938

£11,500

Income limit for personal allowance

£100,000

Personal allowance for people born before 6 April 1938

£11,500

Income Limit for personal allowances (born before 6 April 1938) 28

£28,000

Married couple's allowance before 6 April 1935

Married couple's allowance maximum amount

£8,445

Married couple's allowance minimum amount

£3,260

Transferable Tax Allowance for married couples and civil partners

£1,150

Blind person's allowance

£2,320

 

Income Tax Rates

Rate on taxable income

Band, £(GBP)

Rate,%

Starting savings rate*

 0 - £5,000

0

Basic rate

 Up to £33,500

20**

Higher rate

 £33,500 - £150,000

40***

Additional rate

 over £150,000

45****

* Starting savings rate is available for savings income only. The rate 0% is not available if taxable non-savings income exceeds £5,000.
Dividend Allowance of £5,000 is tax free.

** except dividends (7.5%)
*** except dividends (32.5%)
**** except dividends (38.1%)

 

National Insurance Contributions

Weekly earnings £(GBP)

Not contracted out

Class I (employment) Employee’s rate

 

Up to £157

Nil

£157 to £866

12%

Over £866

2%

Employment allowance, per employer, per year

£3,000

Employer’s rates  

 

Up to £157

Nil

Above £157

13.80%

Class 2

Annual small earning exception is £6,025 per year

Class 2 rate per week is £2.85

 

Class 4

Lower annual earnings limit is £8,164

 

Upper annual earnings limit is £45,000

 

Class 4 rate between lower and upper earnings limit

9%

Class 4 rate above upper earnings limit

2%

 

 

Capital Gains Tax

 

Higher rate taxpayers

20%

Standard rate taxpayers

10%

Rates for trustees and personal representatives

20%

Individual annual exemption 

£11,300

Trusts annual exemption 

£5,650

Entrepreneurs’ relief life time limit

£10,000,000

Entrepreneurs' rate

10%

Residential property

18% / 28%

 

 

Individual Savings Accounts (ISAs) After 1 July 2014

 

Max annual contributions – Total overall annual investment limit a combination of amounts between a Cash and Stocks and Shares NISA, up to the overall annual limit of £20,000

£20,000

 

Stamp Duty (from 4 December 2014)

From 4 December 2014 the SDLT rates were changed by a new regime under which you will only pay the rate of tax on the part of the property price within each tax band.

 

3% surcharge in addition to the existing stamp duty land tax rates on additional or rental properties above £40,000 from 1 April 2016.

 

Residential 

 

£125,000 or less

Nil

On the next £125,000

2%

On the next £675,000

5% / 15%

On the next £575,000

10% / 15%

On the rest (above £1,500,000)

12% / 15%

Non-residential or mixed use

 

£150,000 or less  - annual rent less than 1,000

Nil

£150,001 – £250,000 

2%

Over £250,000

5%

Shares and Securities

 Standard rate - 0.5%, higher rate - 1.5%

Lease rentals (on grant): The net present value is charged at 1% on the excess over £125,000 for residential and 1% on the excess over £150,000 for non-residential or mixed use, land.

1 The threshold for properties in disadvantaged areas is £150,000

2 The 15% rate applies to properties over £500,000 purchased on or after 20 March 2014 by ‘non-natural persons’, such as a company

3 Special rules apply to stamp duty land tax on premiums where the annual rent exceeds £1,000

4 2% surcharge on stamp duty and tax rates on commercial property with a net present value over £5 million

Capital Allowances

 

Annual investment allowance on new purchase of plant and machinery from 1 January 2016

£200,000

First year allowance (FYA) for business expenditure on new low rate (110g/km) emission vehicles

100%

Writing-down allowances

%

Integral features

8

Long Life assets

8

Other plant and machinery

18

Vehicles with emissions less than or equal to 75g/km

100%

Vehicles with emissions between 76g/km and 130g/km

18

Vehicles with emissions over 130g/km

8

 

 

Annual Tax on Enveloped Dwellings

 

Property value is from £500,000 to £1m

£3,500

Property value is from £1 million to £2 million

£7,050

Property value is from £2 million to £5 million

£23,550

Property value is from £5 million to £10 million 

£54,950

Property value is from £10 million to £20 million

£110,100

Property value is above £20 million

£220,350

Disposal of ATED property gains are subject to capital gain tax

28%

 

 

Corporation Tax

 

Taxable profit £ (GBP)s

Taxable profits

19%

 

 

VAT

 

Standard Rate

20%

Lower Rate

5%

Zero Rate

0%

Annual Turnover Limits for registration - last 12 months or if turnover is going to exceed within the next 30 days

£ 85,000

Annual Turnover Limits for de-registration

£ 83,000

 

Inheritance tax

 

£1 – 325,000 (Lifetime limit)

0% *

Over £325,000

40% **

Annual Exemption

 

Annual gifts per donor per year

£3,000

Small gifts per donee per year

£250

Wedding gifts to each of your children

£5,000

Wedding gifts to each grandchild

£2,500

Wedding gifts to others

£1,000

*If someone’s estate is less than the Inheritance Tax threshold of £325,000, the remaining threshold can be transferred to their husband, wife or civil partner’s estate when they die.

** If the value of your estate, if you donate at least 10 per cent of your total assets to charity, tax may be reduced to 30%.

 

 

Non Domiciled Remittance Basis Charges (RBC)

Unremitted income less than 2,000

0%

Resident in the UK at least 7 of previous 9 tax years

£30,000

Resident in the UK at least 12 of previous 14 tax years

£60,000

Resident in the UK at least 17 of the previous 20 tax years, if you’re reporting income you earned before 6 April 2017

£90,000

Personal allowance

0%

Capital Gains Tax Annual Exemption

0%

Capital gain Tax rate

18%/28%

 

 Pension Schemes Allowance

Annual Allowance

£40,000

Lifetime Allowance

£1m

 

Tax efficient Savings and Investment

Venture Capital Trust up to

£200,000

Seed Enterprise Investment Scheme up to

£100,000

Enterprise Investment Scheme

£1,000,000

Social Investment Tax Relief

£1,000,000

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