Tax Rates And Related Information

Corporation Tax

Financial year to 31 March 2020 31 March 2019
Tax Rate 19% 19%

Capital allowances

2019/20 (£) 2018/19 (£)
Plant and machinery
– annual investment allowance *£1m *£200,000
– main rate pool *18% *18%
– long life assets *6% *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 *6% *8%
Energy saving & environmentally beneficial assets 100% 100%

* Reducing balance.

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 2019/20 2018/19
SME rate 230% 230%
Large company (above line credit) 12% 11%
Rates for surrender of losses 2019/20 2018/19
SME rate 14.5% 14.5%
Large company (taxable) 12% 11%

Patent Box

2019/20 2018/19
Effective tax rates on patent box profits 10% 10%

ISA limits

2019/20 2018/19
Overall limits 20,000 20,000
Junior ISA limits 4,368 4,260
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 12% 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.

First-time buyers do not pay Stamp Duty on the first £300,000 of property purchases.

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% 1%
250,001 – 325,000 8% 5% 5%
325,001 – 350,000 13% 10% 5%
350,001 – 750,000 13% 10% 5%
over 750,000 15% 12% 5%

* Additional rates of +4% 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% 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 2019/20 (£) Taxable income 2018/19 (£)
0* Up to 5,000 Up to 5,000
20** †Up to 37,500 †Up to 34,500
40*** †37,501 – 150,000 †34,501 – 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: 38.1% for dividend income, 45% for non-dividend income.

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

Band Taxable income Scottish tax rate
Personal Allowance Up to £11,850 0%
Starter rate £11,850 to £13,850 19%
Basic rate £13,851 to £24,000 20%
Intermediate rate £24,001 to £43,430 21%
Higher rate £43,431 to £150,000 41%
Top rate over £150,000 46%

Income tax allowances

Allowance 2019/20 £ 2018/19 £
Personal allowance*
Individuals 12,500 11,850
Marriage allowance 1,250 1,190
Marriage couples allowance**
Allowance 8,915 8,695
Minimum amount 3,450 3,360
Blind person’s allowance 2,450 2,390
Dividend allowance 2,000 2,000
Personal savings allowance basic rate payer 1,000 1,000
Personal savings allowance higher rate payer 500 500
Small profits/rental income disregard up to 1,000 1,000
‘Rent-a-room’ 7,500 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 £150,000(£125,000 for 2018/19) 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 * and “Income tax allowances” above).

** 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 2019/20

Total weekly earnings £ Rate
Below 166* NIL
166 – 962 12%
Over 962 2%
Married women’s reduced rate 5.85% on earnings between £166 and £962 per week plus 2% on earnings above £962 per week

*Between £118 per week and £166 per week a zero rate applies to protect employees’ contributory benefit entitlement.

Employers’ class 1 contributions for 2019/20
Total weekly earnings £ Rate
Below 166 NIL
Above 166** 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 £3 per week if earning exceed £6,365 per annum
Class 3 – voluntary Flat rate £15 per week
Class 4 – self employed 9% of profits between £8,632 and £50,000 per annum plus 2% on the excess

Car And Fuel Benefits 2019/20

Cars
Minimum 16% of list price (emissions above 50g/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 £24,100
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

2019/20 £ 2018/19 £
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 £12,000 £11,700
Trusts (maximum) £6,000 £5,850
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

2019/20 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.