TAX THRESHOLD AND BENEFITS
Please find below our updated Tax Thresholds and Benefits Sheet. You can download this PDF by clicking this link:
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Income tax, personal and married allowances
| £ per year (unless stated) | 2018-19 | 2017-18 | Change |
| Personal allowance* | 11,850 | 11,500 | 350 |
*Reduced by £1 for each £2 of income in excess of £100,000. In some cases, non-residents may not be entitled to personal allowance.
| Married couples’/civil partners allowance (born on or before 6 April 1935)* | 8,695 | 8,455 | 240 |
| Minimum married/civil partners allowance | 3,360 | 3,260 | 100 |
| Married/civil partners transferable allowance** | 1,190 | 1,150 | 40 |
*Relief limited to 10%. Reduced to minimum allowance by £1 for every £2 over income limit. Apply personal allowance reduction first.
** To benefit as a couple, the lower earner must have income of £11,850 or less.
| Lower rate limit (@20% non-savings income; 0% savings income and dividends)* | 5,000 | 5,000 | nil |
| Basic rate limit (@20%; 7.5% dividend income) | 34,500 | 33,500 | 1,000 |
| Higher rate limit (@40%; 32.5% dividend income) | 150,000 | 150,000 | nil |
| Additional rate (@45%; 38.1% dividend income) | Over 150,000 | Over 150,000 | N.A. |
*Rate on non-dividend savings income up to £5,000 is 0% where taxable non-savings income does not exceed £5,000.
National Insurance contributions
| £ per year (unless stated) | 2018-19 | 2017-18 | Change |
| Lower Earnings Limit | 6,032 | 5,876 | 156 |
| Primary Threshold (PT) | 8,424 | 8,164 | 260 |
| Secondary Threshold (ST) | 8,424 | 8,164 | 260 |
| Upper Earnings Limit (UEL) | 46,350 | 45,000 | 1,350 |
Capital gains tax
| £ per year (unless stated) | 2018-19 | 2017-18 | Change |
| Basic rate taxpayers | 10% | 10% | nil |
| Higher rate taxpayers* | 20% | 20% | nil |
| Trustees* | 20% | 20% | nil |
| Entrepreneurs’ relief | 10% | 10% | nil |
| Annual exemption (individuals and personal representatives) | 11,700 | 11,300 | 400 |
| Annual exemption (Trustees) | 5,850 | 5,650 | 200 |
| Entrepreneurs’ relief – lifetime allowance | 10,000,000 | 10,000,000 | nil |
*A rate of 28% applies to chargeable gains accruing on the disposal of residential property and certain other assets.
Inheritance tax threshold
| £ per year (unless stated) | 2018-19 | 2017-18 | Change |
| Nil rate band £1- £325,000 | 0% | 0% | nil |
| £325,001 and over | 40% | 40% | nil |
Tax efficient investments
| £ per year (unless stated) | 2018-19 | 2017-18 | Change |
| Seed Enterprise investment scheme* | 100,000@50% | 100,000@50% | Nil |
| Enterprise investment scheme * (monthly income tax relief) | 1,000,000@30% | 1,000,000@30% | Nil |
| Venture capital trusts* (maximum income after tax relief) | £200,000@30% | £200,000@30% | nil |
*CGT relief available in some circumstances
Individual Savings Account (ISA)
| £ per year (unless stated) | 2018-19 | 2017-18 | Change |
| Stocks and shares component* (maximum) | 20,000 | 20,000 | Nil |
| Lifetime ISA* (maximum) | 4,000 | 4,000 | Nil |
| Junior ISA (maximum) | 4,260 | 4,128 | nil |
*Investment limited to one cash ISA, one stocks and shares ISA, or one of each up to the maximum overall limits in any one tax year
Note – Help To Buy ISA – deposit limit £12,000, plus up to £200 per month
Benefits
| £ per week (unless stated) | 2018-19 | 2017-18 | Change |
| New State Pension Full Rate | 164.35 | 159.55 | 4.80 |
| Old State Pension Category A or B basic pension* | 125.95 | 122.30 | 3.65 |
| Category B pension (lower) – husband’s insurance** | 75.50 | 73.30 | 2.20 |
| Category C or D – non contributory*** | 75.50 | 73.30 | 2.20 |
| Pension credit Single (standard minimum guarantee) | 163.00 | 159.35 | 0.65 |
| Couple | 248.80 | 243.25 | 5.55 |
| Child Benefit First child | 20.70 | 20.70 | nil |
| Other children | 13.70 | 13.70 | nil |
| Child tax credit Family element (£ per year) | 545 | 545 | nil |
| Child element (£ per year) | 2,780 | 2,780 | nil |
*Based on own/late husband’s, wife’s or civil partner’s national insurance contributions
**Based on husband’s national insurance contributions
***Non-contributory over 80’s pension
Stamp duty land tax
| Rate (%) Residential | 2018-19 | 2017-18 | Change |
| £0-£125,000 | 0% | 0% | nil |
| £125,001-£250,000 | 2% | 2% | nil |
| £250,001-£925,000 | 5% | 5% | nil |
| £925,001-£1,500,000 | 10% | 10% | nil |
| Over £1,500,001 | 12% | 12% | nil |
*Residential rates may be increased by 3% where further residential properties are acquired
