Accountancy News and Advice From MCC Accountants

Tax Threshold and Benefits

Accountancy firms Manchester


Please find below our updated Tax Thresholds and Benefits Sheet. You can download this PDF by clicking this link:


Income tax, personal and married allowances

£ per year (unless stated)2018-192017-18Change
Personal allowance* 11,85011,500350

*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)*8,6958,455240
Minimum married/civil partners allowance 3,3603,260100
Married/civil partners transferable allowance**1,1901,15040

*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)*5,0005,000nil
Basic rate limit (@20%; 7.5% dividend income)34,50033,5001,000
Higher rate limit (@40%; 32.5% dividend income)150,000150,000nil
Additional rate (@45%; 38.1% dividend income)Over  150,000Over  150,000N.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)2018-192017-18Change
Lower Earnings Limit6,0325,876156
Primary Threshold (PT) 8,4248,164260
Secondary Threshold (ST) 8,4248,164260
Upper Earnings Limit (UEL)46,35045,0001,350

Capital gains tax

£ per year (unless stated)2018-192017-18Change
Basic rate taxpayers10%10%nil
Higher rate taxpayers*20%20%nil
Entrepreneurs’ relief10%10%nil
Annual exemption (individuals and personal representatives)11,70011,300400
Annual exemption (Trustees) 5,8505,650200
Entrepreneurs’ relief – lifetime allowance 10,000,00010,000,000nil

*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)2018-192017-18Change
Nil rate band £1- £325,0000%0%nil
£325,001 and over 40%40%nil

Tax efficient investments

£ per year (unless stated)2018-192017-18Change
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)2018-192017-18Change
Stocks and shares component* (maximum)20,00020,000Nil
Lifetime ISA* (maximum)4,0004,000Nil
Junior ISA (maximum)4,2604,128nil

*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


£ per week (unless stated)2018-192017-18Change
New State Pension        Full Rate164.35159.554.80
Old State Pension         Category A or B basic pension* 125.95122.303.65
                                   Category B pension (lower) – husband’s insurance**75.5073.302.20
            Category C or D – non contributory***75.5073.302.20
Pension credit              Single (standard minimum guarantee) 163.00159.350.65
                                   Couple 248.80243.255.55
Child Benefit                First child20.7020.70nil
                                   Other children13.7013.70nil
Child tax credit            Family element (£ per year)545545nil
                                  Child element (£ per year)2,7802,780nil

*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 2018-192017-18Change
Over £1,500,00112%12%nil

*Residential rates may be increased by 3% where further residential properties are acquired

Please follow and like us: