|Income Tax allowances table|
|Income Tax allowances||2017-18||2018-19||2019-20|
|Income limit for Personal Allowance||£100,000||£100,000||£100,000|
|Married Couple’s Allowance (born before 6th April 1935 and aged 75 and over) (2) (3)||£8,445||£8,695||£8,915|
|Income limit for the allowances for those born before 6th April 1948||£28,000||£28,900||£29,600|
|Minimum amount of Married Couple’s Allowance||£3,260||£3,360||£3,450|
|Marriage Allowance (4)||£1,150||£1,190||£1,250|
|Blind Person’s Allowance||£2,320||£2,390||£2,450|
|Personal Savings Allowance – Basic Rate (1)||£1,000||£1,000||£1,000|
|Personal Savings Allowance – Higher Rate (1)||£500||£500||£500|
|Dividend Allowance (2)||£5,000||£2,000||£2,000|
|Income Tax rates and taxable bands|
|Starting rate for savings: 10%/0% (1)||£0-£5,000||£0-£5,000||£0-£5,000|
|Basic rate: 20% (2)||£0-£33,500||£0-£34,500||£0-£37,500|
|Higher rate: 40% (2)||£33,501-£150,000||£34,501-£150,000||£37,501-£150,000|
|Additional rate: 45% (2)||Over £150,000||Over £150,000||Over £150,000|
(1) The 0 per cent starting rate applies to savings income only. If, after deducting your Personal Allowance from your total income liable to Income Tax, your non-savings income is above this limit then the 0 per cent starting rate for savings will not apply. Non-savings income includes income from employment, profits from self-employment, pensions, income from property and taxable benefits.
(2) The rates available for dividends are the 7.5 per cent ordinary rate (within Basic rate band), the 32.5 per cent dividend upper rate (within Higher rate) and the dividend additional rate of 38.1 per cent.
|Starter Rate: 19% (1)||–||£0-£2,000|
|Basic rate: 20% (1)||£0-£31,500||£2,001-£12,150|
|Intermediate rate: 21% (1)||–||£12,151-£31,580|
|Higher rate: 41% (1) (2)||£31,501-£150,000||£31,581-£150,000|
|Top rate: 46% (2)||Over £150,000||Over £150,000|
|National Insurance contributions – rates and allowances|
|£ per week||2017-18||2018-19||2019-20|
|Lower earnings limit, primary Class 1||£113||£116||£118|
|Upper earnings limit, primary Class 1||£866||£892||£962|
|Employees’ primary Class 1 rate between primary threshold and upper earnings limit||0.12||0.12||0.12|
|Employees’ primary Class 1 rate above upper earnings limit||0.02||0.02||0.02|
|Class 1A rate on employer provided benefits (1)||0.138||0.138||0.138|
|Married women’s reduced rate between primary threshold and upper earnings limit||0.0585||0.0585||0.0585|
|Married women’s rate above upper earnings limit||0.02||0.02||0.02|
|Employers’ secondary Class 1 rate above secondary threshold||0.138||0.138||0.138|
|Class 2 rate||£2.85||£2.95||£3.00|
|Class 2 small profits threshold||£6,025||£6,205||£6,365|
|Special Class 2 rate for share fishermen||£3.50||£3.60||£3.65|
|Special Class 2 rate for volunteer development workers||£5.65||£5.80||£5.90|
|Class 3 rate||£14.25||£14.65||£15.00|
|Class 4 lower profits limit||£8,164||£8,424||£8,632|
|Class 4 upper profits limit||£45,000||£46,350||£50,000|
|Class 4 rate between lower profits limit and upper profits limit||0.09||0.09||0.09|
|Class 4 rate above upper profits limit||0.02||0.02||0.02|
|Additional primary Class 1 percentage rate on deferred employments||0.02||0.02||0.02|
|Additional Class 4 percentage rate where deferment has been granted||0.02||0.02||0.02|
|Rates for financial years starting on 1 April|
|Main rate of Corporation Tax||19%||19%||17%|
|Special rate for unit trusts and open-ended investment companies||19%||19%||17%|
Indexation Allowance allows for the effects of inflation when calculating the chargeable gains of companies or organisations.Indexation allowance is frozen at the December 2017 rate.
Trading losses that you have not used in any other way can be offset against profits in future accounting periods, so long as the trade continues.
Trading losses are carried forward and set against profits of the same trade of the next accounting period for losses made in accounting periods ending before 1st April 2017.
These losses are carried forward and set against profits of the same trade of the next accounting period. If you do not want the losses set off, you can make a claim for these to be carried forward and set against trading profits of the following period instead.
These losses are carried forward. In most cases they can be set against total profits of the company (rather than only being available to the same trade), or in certain circumstances, against total profits of a group company.
• Before 31st March 2017 are treated as arising in a separate accounting period ending on that date.
• From 1st April 2017 are treated as arising in a separate accounting period beginning on that date
For accounting periods from 1st April 2017, the way trading losses are set off will depend on when they arise.
• Amount that can be relieved using carried-forward trading losses that arose before 1st April 2017 is restricted to, broadly, the amount of an allowance up to £5 million, plus 50% of remaining trading profits after deduction of the allowance
• Overall amount that can be relieved using most types of carried-forward losses – including carried-forward trading losses incurred either before or after 1st April 2017 – is restricted to, broadly, the amount of an allowance up to £5 million, plus 50% of remaining total profits after deduction of the allowance
Each tax year nearly everyone who is liable to Capital Gains Tax gets an annual tax-free allowance – known as the ‘Annual Exempt Amount’. You only pay Capital Gains Tax if your overall gains for the tax year (after deducting any losses and applying any reliefs) are above this amount.
|Individuals, personal representatives and trustees for disabled people||£11,300||£11,700||£12,000|
If you’re acting as an executor or personal representative for a deceased person’s estate, you may get the full Annual Exempt Amount during the ‘administration period’. You are entitled to the Annual Exempt Amount for the tax year in which the death occurred and the following two tax years. After that there’s no tax-free allowance against gains during the administration period.
A disabled person in this context is a person who has mental health problems or receives the middle or higher rate of Attendance Allowance or Disability Living Allowance.
You won’t get the Annual Exempt Amount if you’re ‘non-domiciled’ in the UK and you’ve claimed the ‘remittance basis’ of taxation on your foreign income and gains (unless you are dual resident in the UK and the double taxation agreement between the UK and the other country in which you are resident allows it to be claimed).
You may have claimed the ‘remittance basis’ if you have income and gains from abroad and have decided that it’s beneficial to be taxed on the foreign income and gains that you bring into the UK, rather than on all income and gains that arise.
Issues of domicile and tax on foreign gains are complicated. For example, the above rules may not apply if your unremitted income is less than £2,000. A lot depends on the facts of each case.
Rates for Capital Gains Tax
|Residential Property: Individuals – Basic rate band||18%||18%||18%|
|Residential Property: Individuals – Higher rate band||28%||28%||28%|
|Residential Property: Trustees & Personal Representatives||28%||28%||28%|
|Other Assets: Individuals – Basic rate band||10%||10%||10%|
|Other Assets: Individuals – Higher rate band||20%||20%||20%|
|Other Assets: Trustees & Personal Representatives||20%||20%||20%|
|Gains qualifying for Entrepreneurs Relief||10%||10%||10%|
If you have gains which are charged at different rates, you need to decide how to use your Annual Exempt Amount. You use it against the gains charged at the highest rates to minimise the tax you owe
|Nil Rate Band (1)||£325,000||£325,000||£325,000|
|Residence Nil Rate Band (2)||£100,000||£125,000||£150,000|
|Gross rate on death||40%||40%||40%|
|Reduced rate on death (3)||36%||36%||36%|
|Lifetime transfer rate||20%||20%||20%|
(1) Any Nil Rate Band which is unused on a person’s death can be transferred to the surviving spouse or civil partner
Stamp Duty Land Tax (SDLT) is charged on land and property transactions in the UK. The tax is charged at different rates and has different thresholds for different types of property and different values of transaction.
The tax rate and payment threshold can vary according to whether the property is in residential or non-residential use, and whether it is a freehold or leasehold. SDLT relief is available for certain kinds of property or transaction.
The table below applies for all freehold residential purchases and transfers and the premium paid for a new lease or the assignment of an existing lease. (If the property will be used for both residential and non-residential purposes the rates differ – please see the section ‘SDLT for non-residential or mixed use property’).
|Residential land or property SDLT rates and thresholds|
|Band of consideration (1)||Rate|
|£0 – £125,000||0%|
|£125,001 – £250,000||2%|
|£250,001 to £925,000||5%|
|£925,001 to £1,500,000||10%|
|‘Non-natural persons’ (2) (3)||15%|
|Net present value of rent – residential||SDLT rate|
|£0 – £125,000||Zero|
|Over £125,000||1% of the value that exceeds £125,000|
If the transaction involves the purchase of a new lease with a substantial annual rent, there may be additional SDLT charge to that shown below, based on the rent. See the later section and table for more detail.
|Purchase price/lease premium or transfer value (non-residential or mixed use)||SDLT rate|
|Up to £150,000||0%|
|Over £150,000 to £250,000||2%|
SDLT on rent for new leasehold properties
|Net present value of rent||SDLT rate|
|Up to £150,000||0%|
|Over £150,000 to £5,000,000||1%|
If you send a paper tax return it must reach HMRC by midnight on 31st October. So, for the 2017-18 tax year (ending on 5 April 2018), the deadline for paper returns is midnight on 31st October 2018.
There are very few exceptions. As an example, the deadline may be later if HMRC send you the letter, telling you to complete a tax return, after 31st July. In this case the letter will tell you the deadline – it is usually three months from the date of the letter. Or if you’re sending a Self Assessment return for a registered pension scheme or non-resident company, you can only send paper returns so the deadline isn’t until 31st January.
Your online tax return must reach HMRC by midnight on 31st January.
So for the 2017-18 tax year, the deadline for online returns is midnight on 31st January 2019 There are very few exceptions. As an example, the deadline may be later if HMRC sends you the letter, telling you to complete a tax return, after 31st October. In this case the letter will tell you the deadline – it is usually three months from the date of the letter. There’s also an earlier deadline of 30th December if you want HMRC to collect any tax you owe through your tax code. You can ask for this if you owe less than £3,000. Please show this clearly on your tax return. HMRC will try to collect the tax due through your code, but they can’t always do so.
• If the company’s relevant period of account is not longer than 18 months, twelve months from the end of that period
Note: In this context ‘relevant period of account’ means the period of account of the company in which the last day of that accounting period falls. ‘Period of account’ means a period for which the company makes up accounts.
HMRC need POAs from most customers that were included in the SA system for the previous tax year.
When POAs are needed for any tax year, they are payable on the legal due dates.
POA1 by 31st January of that tax year.
POA2 by the 31st July that falls directly after the tax year.
Any further tax is due as a final Balancing Charge and is payable by the next 31st January following the relevant tax year.
Payment deadlines if your company or organisation’s taxable profits are £1.5 million or less
If your company or organisation has taxable profits of up to £1.5 million, you must pay your Corporation Tax by the normal due date, which is nine months and one day after the end of your Corporation Tax accounting period. For example, if your company’s accounting period ends on 31st May, your Corporation Tax payment is due on or before 1st March the following year.
If your company’s profits for an accounting period are at an annual rate of more than £1.5 million, you must normally pay your Corporation Tax for that period in instalments.
|Electronic Payment||Other payments|
|Employers tax and Class 1 NIC (1)||17 days after the tax month end||14 days after the tax month end|
|Class 1A NIC||22 July following tax year end||19 July following tax year end|
|PAYE Settlement and Class 1B||22 October following the tax year end||19 October following the tax year end|
(1) ‘Tax month’ ends of the 5of each month