Income Tax

Tax Free Personal Allowance

the amount of gross income you can earn before you are liable to paying income tax

Personal Allowance £11,850
Dividend Allowance £2,000
Personal Savings Allowance (Basic Rate Taxpayers) £1,000
Personal Savings Allowance (Higher Rate Taxpayers) £500
Income Limits For Tapering

the amount of gross income you can have before your personal allowance is reduced personal allowance is reduced by £1 for every £2 over the limit* personal allowance will only be reduced to the basic personal allowance unless income is over £100,000

Income Limit (Born after 5 April 1948) £100,000
Income Limit (Born before 6 April 1948) * £28,900
Married Couples Allowance

available to a qualifying individual born before 6th April 1935 aged 75 or over10% of the amount below is allowed to be deducted from the tax bill of a qualifying individualpersonal allowance is reduced by £1 for every £2 over the income limits for tapering – up to the minimum married couple’s allowance level

Married Couples Allowance £8,695
Minimum Married Couples Allowance £3,360
Marriage Allowance (Transferable Tax Allowance)

available to a qualifying spouses/civil partners born after 5th April 1935equivalent to 10% of the personal allowancespouses or civil partners not liable to taxes in the higher rate or above can transfer up to the amount available to their spouse or civil partner.the recipient receives a tax bill deduction of 20 percent of the amount transferred

Marriage Allowance £1,190
Blind Person’s Allowance
Additional Personal Allowance £2,390
Student Loans Thresholds and Repayment Rates

Thresholds and Rates for Plan 1 (pre-Sep 2012) and Plan 2 (post-Sep 2012)

Plan 1 £18,330 (9%)
Plan 2 £25,000 (9%)
Income Tax Bands and Percentages

*0% starting rate is for savings income only – if your non-savings income is above the starting band level, the 0% rate will NOT apply and the basic rate percentage will be used instead.

Band Limits Percentage
Starting Rate (Savings only *) £0 – £5,000 0%*
Basic Rate £0 – £34,500 20%
Higher Rate £34,501 – £150,000 40%
Additional/Top Rate Over £150,000 45%
Scotland Income Tax Bands and Percentages

*0% starting rate is for savings income only – if your non-savings income is above the starting band level, the 0% rate will NOT apply and the basic rate percentage will be used instead.

Band Limits Percentage
Starting Rate (Savings only *) £0 – £5,000 0%*
Starter Rate £0 – £2,000 19%
Basic Rate £2,001 – £12,150 20%
Intermediate Rate £12,151 – £31,580 21%
Higher Rate £31,581 – £150,000 41%
Additional/Top Rate Over £150,000 46%
Dividend Tax Bands and Percentages
Band Limits Percentage
Ordinary Rate £0 – £34,500 7.5%
Upper Rate £34,501 – £150,000 32.5%
Additional/Top Rate Over £150,000 38.1%

 

National Insurance Contributions

National Insurance Rates and Allowances

Find your classification by looking up your NIC letter on your payslip/return

Shared Banding For All NICs

Lower Earnings Limit (Weekly) £116
Upper Accrual Point (Weekly) £770
Upper Earnings Limit (Weekly) £892
Primary Threshold (Weekly) £162
Secondary Threshold (Weekly) £162
Rates for Class 1 NICs
Between Primary Threshold and Upper Earnings Limit 12%
Above Upper Earnings Limit 2%
Employers’ Rate Above Secondary Threshold 13.8%
Class 1A Rate On Employer Provided Benefits 13.8%
Employees’ Contracted Out Rebate 1.4%
Employers’ Contracted Out Rebate 3.4%
Married Women’s Reduced Rate Between Primary and Upper Earnings 5.85%
Married Women’s Reduced Rate Above Upper Earnings 2%
Self Employed Class 2 and Class 4 NICs
Class 4 Lower Profits Limit (Annual) £8,424
Class 4 Upper Profits Limit (Annual) £46,350
Class 4 Rate Between Lower and Upper Profits 9%
Class 4 Rate Above Upper Profits 2%
Class 2 Earnings Exception Limit £6,205
Class 2 Weekly Amount £2.95
Class 2 Weekly Amount (Share Fisherman) £3.60
Class 2 Weekly Amount (Volunteer Development Workers) £5.80
Voluntary Class 3 NICs
Weekly rate £14.65

 

Corporation Tax

Corporation Tax Rates and Limits

Since 2015/2016 the corporation tax rate has been unified for all company sizes, eliminating the marginal relief.

Small Profits Rate n/a
Main Rate 19%
Small Profits Limit £n/a
Marginal Relief Lower Limit £n/a
Marginal Relief Upper Limit £n/a
Marginal Relief Fraction n/a

 

Capital Gains Tax

Capital Gains Tax Rates and Annual Exempt Amounts

Annual Exempt Amount

Individuals, Personal Reps and Trustees for Disable People £11,700
Other Trustees £5,850

CGT Tax Rates

Individuals – Basic Rate Taxpayer (Residential Property) 18%
Individuals – Higher Rate Taxpayer (Residential Property) 28%
Individuals – Basic Rate Taxpayer (Other Gains) 10%
Individuals – Higher Rate Taxpayer (Other Gains) 20%
Personal Representative of a Deceased Individual (Residential Property) 28%
Personal Representative of a Deceased Individual (Other Gains) 20%
Gains Qualifying for Entrepreneurs’ Relief 10%