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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)2018-192017-18Change
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
Trustees*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

Benefits

£ 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
£0-£125,0000%0%nil
£125,001-£250,0002%2%nil
£250,001-£925,0005%5%nil
£925,001-£1,500,00010%10%nil
Over £1,500,00112%12%nil

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

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