Wrigley Partington

Chartered Accountants & Business Advisors

Income Tax Rates

Tax and accountancy

Various personal allowances and tax rate bands, comparing last year with the current year.

  2017-18 2018-19
Starting rate band to (savings income only) £5,000* £5,000*
Tax rate 0%* 0%*
Basic rate band - next £33,500 £34,500
Non-savings rate 20% 20%
Savings Rate 20% 20%
UK dividend rate **7.5% **7.5%
Higher rate - income over £33,500 £34,500
Higher tax rate 40% 40%
Additional tax rate – over £150,000 45% 45%
UK dividend rate **32.50% **32.50%
UK dividend rate – over £150,000 **38.10% **38.10%
*£1,000 of savings income for basic rate taxpayers (£500 higher rate) may be tax-free.

**First £5,000 of net dividend tax-free 2017/18 reduced to £2,000 2018/19

Allowances that reduce Taxable Income                                                                                    2017-18                  2018-19
Personal allowances (PA) - under 65 (Born after 5 April 1948) £11,500 £11,850
The personal allowance is progressively withdrawn if income exceeds £100,000 £100,000
The age related allowances are progressively withdrawn if income exceeds £28,000 £28,900
Married couple's allowance (MCA) - either partner born before 6 April 1935    
Maximum MCA tax reduction £844.50 £869.50
Transferable Tax Allowance for certain married couples £1,150 £1,185
Trade Allowance (profit over £1,000 can elect to deduct £1,000 rather than expenses)

£1,000

£1,000
Property Allowance  (profit over £1,000 can elect to deduct £1,000 rather than expenses) £1,000 £1,000
Child benefit charge from 7 January 2013 - 1% of the benefit received for every £100 of income above £50,000 - full clawback at £60,000 £50,000 £50,000
Tax Shelters
Enterprise Investment Scheme (EIS) - maximum investment (rate of relief 30%) >£1,000,000 >£1,000,000
Seed EIS (SEIS) - maximum investment (rate of relief 50%) £100,000 £100,000
Venture Capital Trust (VCT) - maximum investment (rate of relief 30%) £200,000 £200,000
"Rent a Room" exempt on gross annual rent £7,500 £7,500
Construction Industry Scheme deduction rate 20% / 30% 20% / 30%

Address

Wrigley Partington Chartered Accountants

Sterling House

501 Middleton Road

Chadderton, Oldham

OL9 9LY