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Tax Threshold and Benefits

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TAX THRESHOLD AND BENEFITS

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) 2018-19 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

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