Tax Rates And Related Information

Corporation Tax

Financial year to 31 March 2019 31 March 2018
Tax Rate 19% 20%

Capital allowances

2018/19 (£) 2017/18 (£)
Plant and machinery
– annual investment allowance *£200,000 £200,000
– main rate pool *18% *18%
– long life assets *8% *8%
– Integral features *8% *8%
Cars – CO2 emissions up to 50g/km 100% 100%
Cars – CO2 emissions 76 – 130g/km *18% *18%
Cars – CO2 emissions over 130g/km *8% *8%
Certain expenditure **100% **100%

* Reducing balance.

** This applies for certain renovation, conversion, innovative and environmentally efficient expenditure.

Value added tax

Standard rate 20%
VAT fraction (where included cost) 1/6
Registration threshold £85,000
Optional flat-rate scheme for small businesses is available.

Research and development tax credits

Rates for reduction 2018/19 2017/18
SME rate 230% 230%
Large company (above line credit) 12% 11%
Rates for surrender of losses 2018/19 2017/18
SME rate 14.5% 14.5%
Large company (taxable) 12% 11%

Patent Box

2018/19 2017/18
Effective tax rates on patent box profits 10% 11%

ISA limits

2018/19 2017/18
Overall limits 20,000 20,000
Junior ISA limits 4,260 4,128
Lifetime ISA limits 4,000 4,000

Stamp duty land tax – England , Wales and Northern Ireland

Total consideration £ Residential Rates* Non Residential Rates
1 – 125,000 NIL NIL
125,001 – 150,000 2% NIL
150,001 – 250,000 2% 2%
250,001 – 925,000 5% 5%
925,001 – 1,500,000 10% 5%
over 1,500,000 10% 5%
over 500,000 **15% N/A

* Additional 3% rate applies to second and subseqent properties costing over £40,000.

** For purchases by companies and other certain non-natural persons, subject to certain exclusions.

Land and buildings transaction tax – Scotland

Total consideration £ Residential Additional Rates* Residential Rates Non Residential Rates
1 – 145,000 3% NIL NIL
145,001 – 150,000 5% 2% NIL
150,001 – 250,000 5% 2% 3%
250,001 – 325,000 8% 5% 3%
325,001 – 350,000 13% 10% 3%
350,001 – 750,000 13% 10% 4.5%
over 750,000 15% 12% 4.5%

* Additional rates apply to second and subsequent properties costing over £40,000.

Land transaction tax – Wales

Total consideration   – £ Residential Rates Residential Additional Rates* Non Residential Rates
1-150,000 0% 3% 0%
150,001 – 180,000 0% 3% 1%
180,001 – 250,000 3.5% 6.5% 1%
250,001 – 400,000 5% 8% 5%
400,001 -750,000 7.5% 10% 5%
750,001 – 1,000,000 10% 13% 5%
1,000,000 – 1,500,000 10% 13% 6%
Over 1,5000,000 12% 15% 6%

* Additional rates apply to second and subsequent properties costing over £40,000

Income tax rates – England, Wales and Northern Ireland

Rate % Taxable income 2018/19 £ Taxable income 2017/18 £
0* Up to 5,000 Up to 5,000
20** †Up to 34,500 Up to 33,500
40*** †34,501 – 150,000 33,501 to 150,000
45**** Over 150,000 Over 150,000

* Starting rate applies to savings income only and is only available if total of other income is no more than £16,850

** 7.5% for dividend income

*** 32.5% for dividend income

**** 38.1% for dividend income

Rate of income tax for discretionary trusts: 37.5% for dividend income, 45% for non-dividend income.

Income tax rates – Scotland (apply to non-savings and non-dividend income only)

Rate % Taxable income 2018/19 £ Taxable income 2017/18 £
19% Up to 2,000 n/a
20% 2,001 – 12,150 Up to 31,500
21% 21,151 -31,580 n/a
40% n/a 31,501 – 150,000

 

41% 31,581 – 150,000 n/a
45% n/a Over £150,000
46% Over £150,000 n/a

Income tax allowances

Allowance 2018/19 £ 2017/18 £
Personal allowance*
Individuals 11,850 11,000
Marriage allowance 1,150 1,100
Marriage couples allowance**
Allowance 8,695 8,445
Minimum amount 3,360 3,260
Blind person’s allowance 2,390 2,320
Dividend allowance 2,000 5,000
Personal savings allowance basic rate payer 1,000 1,000
Personal savings allowance higher rate payer 1000 500
Small profits/rental income disregard upto 1,000 1,000
‘Rent-a-room’ 7,800 7,500

* Personal allowance is reduced by £1 for every £2 exceeding £100,000 of income. This is irrespective of age of date of birth.**

**Either partner 75 or over or born before 6 April 1935. Relief is restricted to a 10% tax credit.

Inheritance tax

Transfers on or after 6 April 2018 (husband and wife treated separately)

Band £ Lifetime rate £ Death rate £
0 – 325,000* NIL NIL
Over 325,000 20% **40%

* A further nil rate band of £125,000(£100,000 for 2017/18) may be available in relation to current or former residences. Nil rate bands of surviving spouses/civil partners may be increased by unused nil rate bands of deceased spouses/civil partners.

**Where ‘adjusted net income’ is above the income limit the age-related allowance is reduced by £1 for every £2 of excess income, until it is reduced to the basic level (but also see *).

** A reduced rate of 36% applies where a deceased individual has left 10% or more of their net estate to charity.

Inheritance tax reliefs

£
Annual exemption 3,000
Small gifts exemption 250
Wedding gifts exemption
Gifts made by
– parent 5,000
– more remote ancestor 2,500
– bride/groom 2,500
– other person 1,000

Inheritance tax tapering relief

Rates for transfers on death also apply to gifts within seven years of death subject to tapering relief.

Years between gift and death Reduction in charge
0 – 3 NIL
3 – 4 20%
4 – 5 40%
5 – 6 60%
6 – 7 80%

National insurance contributions

Employees’ class 1 contributions on 2018/19

Total weekly earnings £ Rate
Below 162* NIL
162 – 892 12%
Over 892 2%
Married women’s reduced rate 5.85% on earnings between £162 and £892 per week plus 2% on earnings above £892 per week

*Between £116 per week and £161 per week a zero rate applies to protect employees’ contributory benefit entitlement.

Employers’ class 1 contributions for 2018/19
Total weekly earnings £ Rate
Below 162 NIL
Above 162** 13.8%

**A rate of 0% is applied to Employees under 21 and apprentices under 25 on earnings up to £892 per week.

Annual employment allowance for qualifying employers £3,000
Class 2 – self employed Flat rate £2.95 per week if earning exceed £6,205 per annum
Class 3 – voluntary Flat rate £14.65 per week
Class 4 – self employed 9% of profits between £8,424 and £46,350 per annum plus 2% on the excess

Car And Fuel Benefits 2018/19

Cars
Minimum 20% of list price (emissions level above 95g/km CO2 (lower rates where emissions below this level)
Increments 1% for each additional 5g/km CO2 emissions over 95g/km CO2
Diesel cars 4% surcharge
Electric cars 13% of list price
Maximum 37%
Emissions levels for most cars can be found on www.vca.gov.uk CO2 level rounded down to nearest 5g.
Fuel
Private fuel provided with company car – percentages as above for cars x £22,600
Approved mileage rates for business mileage in own car
Cars and vans Per Mile
0 – 10,000 miles 45p
Over 10,000 miles 25p
Advisory mileage rates for business mileage in company car From 1 June 2018 (reviewed quarterly)
Petrol/LPG Diesel
Petrol LPG
1400cc or less 11p 7p 1600cc or less 10p
1401 – 2000cc 14p 9p 1601cc – 2000cc 11p
2001cc or more 22p 14p 2001cc or more 13p
Petrol hybrid cars are treated as petrol cars for purpose.

Capital Gains Tax

2018/19 £ 2017/18 £
Tax rates Individuals – basic rate 10%/18%* 10%/18%*
Individuals – higher/additional rate 20%/28%* 20%/28%*
Trusts and personal representatives 20%/28%* 20%/28%*
Companies see CT rates see CT rates
Annual exemptions
Individuals £11,700 £11,300
Trusts (maximum) £5,850 £5,650
Chattels proceeds exemption £6,000 £6,000%
Capital gains tax entrepreneurs’ relief:
Lifetime limit £10,000,000 £10,000,000
Rate 10% 10%
*There is an 8% additional tax charge on the capital gains of a residential property.

High income child benefit charge

2018/19 Weekly £ Annual £
Benefit receivable for eldest/Only child 20.70 1,076.40
Benefit receivable for other children 13.70 712.40

For taxpayers with income between £50,000 and £60,000 a charge of 1% for every £100 of income over £50,000 and 100% where income exceeds £60,000 for each week they, or their partner, are in receipt of child benefit.