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UK Tax & Allowances

Author Image The Technical Team
6 minutes read
Last updated on 12th Dec 2018

Income Tax (non Scottish)

Tax/Allowance 2017/18 2018/19 2019/20 Further information
Basic rate income tax band (20%) £0 - £33,500
£0 - £34,500 £0 - £37,500 Read more about income tax
Higher rate income tax band (40%) £33,501- £150,000
£34,501 - £150,000 £37,501 - £150,000
Additional rate income tax band (45%) £150,000 +
£150,000 + £150,000+

Scottish income tax

Tax/Allowance 2017/18 2018/19 2019/20 Further information
Starter rate income tax (19%) - £0 - £2,000 £0 - £2,049* Read more about Scottish tax rates
Basic rate income tax (20%) £0 - £31,500
£2,001 - £12,150
£2,050 - £12,444*
Intermediate rate income tax (21%) - £12,151 - £31,580 £12,445 - £30,930*
Higher rate income tax (40%)
£31,501 - £150,000 
n/a n/a*
Higher rate income tax (41%) - £31,581 - £150,000 £30,931 - £150,000*
Additional rate income tax band (45%)
£150,000 +
n/a n/a*
Top rate income tax band (46%) - £150,000 +  £150,000 +*

* On 12 December 2018 the Scottish Government announced the income tax rates and bands for 2019-20 in the Scottish Budget 2019-20. These will be considered by the Scottish Parliament, and an agreed Scottish Rate Resolution will set the Scottish income tax rates and bands for the tax year 2019-20.

Tax on savings

Tax/Allowance 2017/18 2018/19  2019/20 Further Information 
Starting rate of tax on savings income 0%  0%  0% Read more about income tax
Basic rate of tax on savings income 20%  20%  20%
Higher rate of tax on savings income 40%  40%  40%
Additional rate of tax on savings income 45%  45% 45%

Personal Savings Allowance

Tax/Allowance 2017/18 2018/19 2019/20 Further information
Basis rate tax payers £1,000
£1,000 £1,000

 

Read more about Personal  Savings Allowance

Higher rate tax payers £500 £500 £500
Additional rate tax payers £0 £0 £0

Personal Allowance

Tax/Allowance 2017/18 2018/19 2019/20 Further information
Personal allowance £11,500 £11,850
£12,500 Read more on personal allowances
Blind persons allowance £2,320 £2,390
£2,450

Dividend tax allowance

Tax/Allowance 2017/18 2018/19  2019/20 Further information
Dividend allowance  £5,000  £2,000  £2,000 Read more about tax on dividends
Dividend ordinary rate - for dividends otherwise taxable at the basic rate. 7.5% 7.5% 7.5%
Dividend upper rate - for dividends otherwise taxable at the higher rate. 32.5% 32.5% 32.5%
Dividend additional rate - for dividends otherwise taxable at the additional rate. 38.1% 38.1% 38.1%

Special rates of income tax for trustees (discretionary trusts and interest in possession trusts)

Tax/Allowance 2017/18 2018/19 2019/20 Further information
Discretionary trusts Read more about special rates of income tax
UK investment bonds Gains above £1,000 taxed at 25% Gains above 1,000 taxed at 25% Gains above 1,000 taxed at 25%
Offshore investment bonds Gains above £1,000 taxed at 45% Gains above £1,000 taxed at 45% Gains above £1,000 taxed at 45%
Unit trusts & OEICs Dividends taxed at 7.5% and interest taxed at 20%. For income above £1,000, dividends are taxed at 38.1% and interest 45% Dividends taxed at 7.5% and interest taxed at 20%. For income above £1,000, dividends are taxed at 38.1% and interest 45% Dividends taxed at 7.5% and interest taxed at 20%. For income above £1,000, dividends are taxed at 38.1% and interest 45%
Interest in Possession Trusts
UK investment bonds In tax years post death, UK trustees are taxed at 25% In tax years post death, UK trustees are taxed at 25% In tax years post death, UK trustees are taxed at 25%
Offshore investment bonds In tax years post death, UK trustees are taxed at 45% In tax years post death, UK trustees are taxed at 45% In tax years post death, UK trustees are taxed at 45%
Unit trusts and OEICs Trustees are taxed at 20% on interest and 7.5% on dividends Trustees are taxed at 20% on interest and 7.5% on dividends Trustees are taxed at 20% on interest and 7.5% on dividends

Marriage Allowance & Married Couples Allowance

Tax/Allowance 2017/18 2018/19 2019/20 Further information
Marriage Allowance £1,150 £1,190
£1,250 Read more about Marriage Allowance
Marriage Couple's Allowance for those born before 6 April 1935 £8,445(max)
£3,260(min)
£8,695(max)
£3,360(min)
£8,915(max)
£3,450(min)
Income limit for Married Couple's Allowance £28,000 £28,900
£29,600

National Insurance

Tax/Allowance 2017/18 2018/19 2019/20 Further information
Class 1 NICs: Employee and employer thresholds and allowance
(£ per week - except where stated)
Read more about National Insurance
Lower Earnings Limit £113 £116 £118
Primary Threshold £157 £162 £166
Secondary Threshold £157 £162 £166
Upper Earnings Limit £866 £892 £962
Upper Secondary Threshold for under 21s £866 £892 £962
Apprentice Upper Secondary Threshold for under 25s £866 £892 £962
Employment Allowance (per employer) £3,000 per year £3,000 per year £3,000 per year
Class 1 NICs: Employee NIC rates
(£ per week - except where stated)

Below Weekly Lower Earnings Limit
0% 
0% 
0%
Weekly Lower Earnings Limit to Primary Threshold 0%  0%  0%
Primary Threshold to Upper Earnings Limit 12%  12%  12%
Above Upper Earnings Limit 2%  2%  2%
Married woman’s reduced rate for (primary) Class 1 contribution rates
Weekly earnings from between the Primary Threshold and Upper Earnings Limit
5.85% 5.85% 5.85%
Weekly earnings above the Upper Earnings Limit
2% 2% 2%
Class 1 NICs: Employer NIC rates
(£ per week - except where stated)
Employer’s (secondary) Class 1 contribution rates
Below the Secondary Threshold 0% 0% 0%
Above the Secondary Threshold 13.8%
13.8%
13.8%
Employer’s (secondary) Class 1 contribution rates for employees under 21
Below the Upper Secondary Threshold 0%  0%  0%
Above Upper Secondary Threshold 13.8%  13.8%  13.8%
Employer’s (secondary) Class 1 contribution rates for Apprentices under 25
Below the Upper Secondary Threshold 0%  0%  0%
Above Upper Secondary Threshold 13.8%  13.8%  13.8%
Class 2 NICs: Self-employed rates and thresholds
(£ per week - except where stated)
Small Profits Threshold £6,025 per year £6,205 per year £6,365 per year
Above the Small Profits Threshold £2.85 £2.95 £3.00
Class 3 NICs: Other rates and thresholds
(£ per week)

Voluntary contributions
 £14.25
£14.65 £15.00
Class 4 NICs: Self-employed rates and thresholds
(£ per year)

Lower Profits Limit £8,164 £8,424 £8,632
Upper Profits Limit £45,000 £46,350 £50,000
Class 4 contribution rates
Below the Lower Profits Limit


0%

0% 0%
Between the Lower Profits Limit  and Upper Profits Limit 9% 9% 9%
Above the Upper Profits Limit


2%


2%

2%

Working and Child Tax Credits, Child Benefit and Guardians Allowance

Tax/Allowance 2017/18 2018/19 2019/20 Further information
Working tax credits (per year)
Read more about child benefit and guardians allowance
Basic element £1,960 £1,960 £1,960
Couple and lone parent element
£2,010 £2,010 £2,010
30 hour element £810 £810 £810
Disabled worker element £3,000 £3,090 £3,165
Severe disability element £1,290 £1,330 £1,365
Childcare element of the working tax credit (per week)
Maximum eligible cost for one child £175 £175 £175
Maximum eligible cost for two or more children £300 £300 300
Percentage of eligible costs covered 70% 70% 70%
Child tax credit (per year)
Family element £545 £545 £545
Child element £2,780 £2,780 £2,780
Disabled child element £3,175 £3,275 £3,355
Severely disabled child element £1,290 £1,325 £1,360
Child benefit (per week)
Eldest/only child £20.70 £20.70 £20.70
Other children


£13.70


£13.70

£13.70
Guardian's allowance £16.70 £17.20
£17.60

Capital, assets and property

Tax/Allowance 2017/18 2018/19 2019/20 Further information
Pensions allowances Read more about pensions allowances
Lifetime Allowance limit £1,000,000 £1,030,000 £1,055,000
Annual Allowance limit £40,000 £40,000 £40,000
Tapered Annual Allowance From £10,000 to £40,000 From £10,000 to £40,000 From £10,000 to £40,000
Money Purchase Annual Allowance  £4,000  £4,000  £4,000
Tax free savings accounts Read more about Tax free savings accounts
Individual Savings Account (ISA) subscription limit

£20,000*

*Of which £4,000 may be saved into a Lifetime ISA 

£20,000*

*Of which £4,000 may be saved into a Lifetime ISA 

£20,000*

*Of which £4,000 may be saved into a Lifetime ISA 

Junior ISA subscription limit £4,128 £4,260 £4,368
Child Trust Fund (CTF) subscription limit £4,128 £4,260 £4,368
Insurance Premium Tax  
Standard rate 10% 12%  
Higher rate 20% 20%  
Capital Gains Tax Read more about Capital Gains Tax
Main rates for individuals 10% / 20% 10% / 20% 10% / 20%
Rates for individuals (for gains on residential property not eligible for Private Residence Relief, and carried interest) 18% / 28% 18% / 28% 18% / 28%
Main rate for trustees and personal representatives 20% 20% 20%
Rate for trustees and personal representatives (for gains on residential property not eligible for Private Residence Relief) 28% 28% 28%
Annual Exempt Amount (AEA) for individuals and personal representatives £11,300


£11,700

£12,000
AEA for most trustees £5,650 £5,850 £6,000
Rate on gains subject to entrepreneurs’ relief 10% 10% 10%
Rate on gains subject to investors’ relief 10% 10% 10%
Entrepreneurs’ relief: lifetime limit on gains for entrepreneurs £10,000,000 £10,000,000 £10,000,000
Investors’ relief: lifetime limit on gains for external investors  £10,000,000 £10,000,000 £10,000,000
Inheritance tax Read more about Inheritance tax
Rate (for estates) 40% 40% 40%
Reduced rate (for estates leaving 10% or more to charity) 36%  36%  36%
Rate (for chargeable lifetime transfers) 20%  20%  20%
Nil rate band limit £325,000  £325,000  £325,000
Residence nil rate band limit £100,000  £125,000  £150,000
Stamp Duty Land Tax - residential property Read more about Stamp Duty Land Tax
Rate (on portion of value above threshold)
£0 to £125,000 0% 0% 0%
£125,000 to £250,000 2% 2% 2%
£250,000 to £925,000 5% 5%  5%
£925,000 to £1,500,000 10% 10% 10%
£1,500,000 + 12% 12% 12%
Rate (on portion of value above threshold) on or after 1 April 2016 if purchase is of an additional residential property
£0 to £125,000 3% 3% 3%
£125,000 to £250,000 5% 5% 5%
£250,000 to £925,000 8%  8%  8%
£925,000 to £1,500,000 13%  13%  13%
£1,500,000 + 15% 15% 15%
Stamp Duty Land Tax - rates for first-time buyers purchasing properties worth £500,000 or less Read more about Stamp Duty Land Tax
0 to £300,000 0% 0% 0%
£300,000 to £500,000 5% 5%  5%
£500,000 + Standard rates Standard rates Standard rates
Stamp Duty Land Tax - non-residential property Read more about Stamp Duty Land Tax
0 to £150,000 0%  0%  0%
£150,000 to £250,000 2% 2%  2%
£250,000 + 5% 5%  5%

Business

Tax/Allowance 2017/18 2018/19  2019/20 Further information
Corporation tax rates Read more about tax on businesses
Main rate
19% 19% 19%
Value Added Tax
Standard rate 20% 20% 20%
Reduced rate 5% 5% 5%
Zero rate items  0% 0% 0%
VAT registration threshold £85,000 £85,000 £85,000
VAT deregistration threshold


£83,000


£83,000

£83,000

New flat rate State Pension

Tax/Allowance 2017/18 2018/19 2019/20 Further information
Full new flat rate State Pension(per week) £159.55
£164.35
£168.60 Read more about the new State Pension

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