Based on Budget announcements on 29 October 2018.
For more information on tax rates, please click on the links below or download the Tax Facts PDF.
- Income tax rates
- Income tax allowances
- Pension contributions
- Capital gains tax
- Inheritance tax
- Non domiciled remittance basis users
- National insurance contributions
- Individual savings accounts
- Tax efficient savings and investments
- Property stamp taxes
- Annual tax on enveloped dwellings
- Corporation tax and diverted profits tax
- Patent box
- Research and development tax relief
- Capital allowances
- Value added tax
- Digital services tax
- Stamp duty
- Authorised mileage rates
- Car and fuel scale benefits
A Rate on non dividend savings income up to £5,000 is 0% where taxable non savings income does not exceed £5,000.
B A dividend allowance effectively taxes the first £2,000 dividends received at 0%. Dividends above this limit are taxed at 7.5% for basic and standard rate taxpayers, 32.5% for higher rate taxpayers and 38.1% for additional and trust rate taxpayers.
C Basic rate band increased by gross Gift Aid donations and most personal pension contributions.
D Scottish income tax and rate bands apply to earned, pensions and property income of Scottish taxpayers. UK income tax rates and bands apply for other income, including savings and dividend income, of Scottish taxpayers. The Scottish Budget will be announced on 12 December 2018 and the Scottish rates and bands for 2019/20 will then be updated. With effect from 6 April 2019, the Welsh Government also has the right to set the Welsh rate of income tax that applies to earned, pension and property income of Welsh taxpayers in addition to the UK rates less 10%. The Welsh Government has set the Welsh rate on income tax at 10% for 2019/20, leaving the combined UK plus Welsh rates the same as those applying in England and Northern Ireland.
A Reduced by £1 for every £2 of income over £100,000.
B Non residents may not be entitled to personal allowances, in certain circumstances.
C Available to persons born before 6 April 1935. Relief limited to 10%. Reduced to minimum allowance by £1 for every £2 over income limit. Minimum allowance reduced by £1 for every £2 income over £100,000 after applying personal allowance reduction.
D £500 for higher rate and £nil for additional rate taxpayers.
E If gross income in excess of £1,000, a deduction of £1,000 instead of actual expenses is permitted.
Note: High income child benefit charge: 1% of the benefit per £100 of adjusted net income over £50,000: 100% of the benefit when adjusted net income is over £60,000.
A Up to the lower of 100% of earnings or the maximum contribution. Maximum contribution is the annual allowance plus unutilised allowances from the three previous tax years. Up to £3,600 may be contributed irrespective of earnings. Annual allowance reduced by £1 for every £2 income over £150,000 to a minimum of £10,000, and to £4,000 maximum if certain pension drawings made.
A Gains on carried interest and chargeable residential property - 8% surcharge.
Note: Non UK residents subject to capital gains tax (or corporation tax for companies) on sale of UK residential property and, from 6 April 2019, non residential property and certain disposals of interests in UK property rich entities.
Note: From 6 April 2019, certain disposals of UK land and buildings by non residents must be reported and the tax paid to HMRC within 30 days of sale. Similar rules will apply for certain disposals of residential property by UK residents from 6 April 2020.
A Additional residence nil rate band (RNRB) of £150,000 (2018/19 £125,000) for transfers of a main residence to direct descendants. NRB and RNRB for estate of surviving spouse are increased by unutilised percentage of NRB and RNRB of predeceased spouse. RNRB tapers away for estates over £2m.
B Some lifetime gifts are taxed at 20%.
C Tax rate reduced to 36% where 10% or more of net chargeable estate is left to charity.
Note: Certain returning former UK domiciled individuals, and non domiciled individuals who have been resident in the UK in at least 15 of the previous 20 tax years, are treated as if UK domiciled for income tax, capital gains tax and inheritance tax purposes.
The first £3,000 of employer's liability relieved by the employment allowance. From 6 April 2020, the employment allowance will only apply to companies with an NIC bill of less than £100,000. No employers NIC for employees aged under 21 (and apprentices up to age 25) on earnings up to £962 per week (the upper earnings limit).
Apprenticeship Levy at 0.5% payable on annual pay bills in excess of £3m, net of £15,000 annual allowance.
|INDIVIDUAL SAVINGS ACCOUNTS|
|Cash and shares combined limit||£20,000||£20,000|
Note: Help To Buy ISA - deposit limit £1,200, plus up to £200 per month.
A Income tax relief at 50%.
B Income tax relief at 30%.
C £1.5m for enterprises up to 7 years old.
D Up to £2m for 'knowledge - intensive' companies.
E Capital gains tax deferral on gains reinvested in EIS qualifying investments.
F Capital gains tax exemption on 50% of gains reinvested in SEIS qualifying investments.
3% supplement to above rates for second properties and all purchases above £40,000 by corporates, discretionary and certain other trustees.
Residential properties in England and Northern Ireland purchased by non-natural persons (enveloped properties) for more than £500,000 incur a flat 15% SDLT rate unless a relief is available.
First time buyer exemption from SDLT for purchases up to £300,000 and for the first £300,000 of purchases up to £500,000.
First time buyer relief from LBTT for the first £175,000 of relevant property purchases.
England and Northern Ireland - 1% on present value of rents above £125,000,
|Non residential/mixed use||England & NI||Scotland||Wales|
|0 - £150,000||Nil||Nil||Nil|
|£150,001 - £250,000||2%||3%||1%|
|£250,001 - £350,000||5%||3%||5%|
|£350,001 - £1m||5%||4.5%||5%|
|Non residential/mixed leases|
England and Northern Ireland - 1% on present value of rents £150,001 to £5m, 2% above £5m.
Scotland - 1% on present value of rents over £150,000.
Wales - 1% on present value of rents £150,000 to £2m, 2% above £2m.
Note: The time limit for filing a stamp duty land tax return and paying the stamp duty land tax liability is reduced from 30 to 14 days for transactions with an effective date after 1 March 2019.
|ANNUAL TAX ON ENVELOPED DWELLINGS|
|Residential property value||2019/20||2018/19|
|£500,001 - £1m||£3,650||£3,600|
|£1m - £2m||£7,400||£7,250|
|£2m - £5m||£24,800||£24,250|
|£5m - £10m||£57,900||£56,550|
|£10m - £20m||£116,100||£113,400|
Note: Prior to 1 April 2019, gains on disposals of property within the Annual Tax on Enveloped Dwellings regime subject to capital gains tax at up to 28%.
|CORPORATION TAX AND DIVERTED PROFITS TAX|
|Loans to participators||32.5%||32.5%|
|Restitution interest payments
corporation tax rate
|Diverted profits tax||25%||25%||B|
A Withheld at source.
B Applies to profits of large entities diverted from the UK as a result of an avoided permanent establishment or transactions which lack economic substance.
|Effective rate of tax on qualifying profits||10%||10%||A|
A Nexus based regime operates from 1 July 2016. Previous regime available until 2021 if opt in election made for patents registered by 30 June 2016.
|RESEARCH AND DEVELOPMENT TAX RELIEF|
|SME enhanced deduction scheme||130%||130%||A|
|SME cash credit for R&D loss surrendered||14.5%||14.5%||B|
|Large company above the line scheme credit||12%||12%||C|
A Additional (enhanced) tax deduction available for qualifying R&D expenditure.
B From 1 April 2020, the payable R&D tax credit in any tax year is restricted to three times the company's total PAYE income tax and NIC liability for the year.
C Taxable credit available on qualifying R&D expenditure.
A Maximum annual investment allowance £1m pa from 1 January 2019 to 31 December 2020 (£200,000 pa to 31 December 2018 and from 1 January 2021).
B Reducing balance.
C Available for: research and development (no time limit); enterprise zone (assisted areas) until designated dates between 31 March 2020 and 16 March 2024; energy saving and environmentally beneficial (water efficient) technologies until 31 March 2020/5 April 2020; brand new low emission cars and gas refuelling stations until 31 March 2021; zero-emission goods vehicles until 31 March 2021/5 April 2021; and electric vehicle charge points until 31 March 2023/5 April 2023.
D Expenditure on non residential structures and buildings on construction contracts entered into on or after 29 October 2018.
A Taxable turnover is measured by reference to the last 12 months or next 30 days.
|Consideration on shares over £1,000||0.5%|
|AUTHORISED MILEAGE RATES|
|Private cars and vans||First 10,000 miles in the tax year||45p|
|Each qualifying passenger||5p|
Benefit for Electric Vehicles 16%.
Diesel vehicles meeting the RDE2 standard will be exempt from diesel supplement and the above petrol rates apply for such vehicles.