TAX FACTS 2017/2018
Allowances and Reliefs
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£ (GBP)
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Personal allowance for people born after 5 April 1938
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£11,500
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Income limit for personal allowance
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£100,000
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Personal allowance for people born before 6 April 1938
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£11,500
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Income Limit for personal allowances (born before 6 April 1938) 28
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£28,000 |
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Married couple's allowance before 6 April 1935
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Married couple's allowance maximum amount
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£8,445
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Married couple's allowance minimum amount
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£3,260
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Transferable Tax Allowance for married couples and civil partners
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£1,150
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Blind person's allowance
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£2,320
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Income Tax Rates
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Starting savings rate*
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0 - £5,000
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0
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Basic rate
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Up to £33,500
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20**
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Higher rate
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£33,500 - £150,000
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40***
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Additional rate
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over £150,000
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45****
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* 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%)
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National Insurance Contributions
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Weekly earnings £(GBP)
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Not contracted out
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Class I (employment) Employee’s rate
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Up to £157
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Nil
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£157 to £866
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12%
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Over £866
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2%
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Employment allowance, per employer, per year
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£3,000
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Employer’s rates
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Up to £157
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Nil
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Above £157
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13.80%
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Class 2
Annual small earning exception is £6,025 per year
Class 2 rate per week is £2.85
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Class 4
Lower annual earnings limit is £8,164
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Upper annual earnings limit is £45,000
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Class 4 rate between lower and upper earnings limit
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9%
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Class 4 rate above upper earnings limit
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2%
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Capital Gains Tax
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Higher rate taxpayers
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20%
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Standard rate taxpayers
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10%
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Rates for trustees and personal representatives
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20%
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Individual annual exemption
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£11,300
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Trusts annual exemption
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£5,650
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Entrepreneurs’ relief life time limit
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£10,000,000
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Entrepreneurs' rate
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10%
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Residential property
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18% / 28%
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Individual Savings Accounts (ISAs) After 1 July 2014
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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
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£20,000
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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.
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Residential
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£125,000 or less
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Nil
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On the next £125,000
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2%
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On the next £675,000
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5% / 15%
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On the next £575,000
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10% / 15%
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On the rest (above £1,500,000)
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12% / 15%
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Non-residential or mixed use
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£150,000 or less - annual rent less than 1,000
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Nil
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£150,001 – £250,000
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2%
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Over £250,000
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5%
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Shares and Securities
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Standard rate - 0.5%, higher rate - 1.5%
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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
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Annual investment allowance on new purchase of plant and machinery from 1 January 2016
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£200,000
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First year allowance (FYA) for business expenditure on new low rate (110g/km) emission vehicles
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100%
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Writing-down allowances
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%
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Integral features
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8
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Long Life assets
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8
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Other plant and machinery
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18
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Vehicles with emissions less than or equal to 75g/km
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100%
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Vehicles with emissions between 76g/km and 130g/km
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18
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Vehicles with emissions over 130g/km
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8
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Annual Tax on Enveloped Dwellings
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Property value is from £500,000 to £1m
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£3,500
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Property value is from £1 million to £2 million
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£7,050
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Property value is from £2 million to £5 million
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£23,550
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Property value is from £5 million to £10 million
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£54,950
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Property value is from £10 million to £20 million
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£110,100
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Property value is above £20 million
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£220,350
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Disposal of ATED property gains are subject to capital gain tax
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28%
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Corporation Tax
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Taxable profit £ (GBP)s
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Taxable profits
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19%
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VAT
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Standard Rate
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20%
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Lower Rate
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5%
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Zero Rate
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0%
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Annual Turnover Limits for registration - last 12 months or if turnover is going to exceed within the next 30 days
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£ 85,000
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Annual Turnover Limits for de-registration
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£ 83,000
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Inheritance tax
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£1 – 325,000 (Lifetime limit)
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0% *
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Over £325,000
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40% **
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Annual Exemption
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Annual gifts per donor per year
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£3,000
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Small gifts per donee per year
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£250
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Wedding gifts to each of your children
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£5,000
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Wedding gifts to each grandchild
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£2,500
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Wedding gifts to others
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£1,000
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*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)
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Unremitted income less than 2,000
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0%
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Resident in the UK at least 7 of previous 9 tax years
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£30,000
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Resident in the UK at least 12 of previous 14 tax years
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£60,000
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Resident in the UK at least 17 of the previous 20 tax years, if you’re reporting income you earned before 6 April 2017
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£90,000 |
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Personal allowance
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0%
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Capital Gains Tax Annual Exemption
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0%
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Capital gain Tax rate
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18%/28%
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Pension Schemes Allowance
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Annual Allowance
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£40,000
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Lifetime Allowance
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£1m
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Tax efficient Savings and Investment
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Venture Capital Trust up to
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£200,000
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Seed Enterprise Investment Scheme up to
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£100,000
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Enterprise Investment Scheme
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£1,000,000
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Social Investment Tax Relief
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£1,000,000
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