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2019/20 Tax Rates and Allowances
Income Tax |
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| 2019/20 | 2018/19 | |
| Starting rate for savings only income 0% | £5,000 | £5,000 |
| Dividend Allowance 0% | £2,000 | £5,000 |
| Basic rate 20% (7.5% for dividends above £5,000) | £37,500 | £34,500 |
| Higher rate 40% (32.5% for dividends) |
£37,501 –
£150,000 |
£34,501 –
£150,000 |
| Additional rate 45% (38.1% for dividends) | £150,001+ | £150,001+ |
| Personal savings allowance – 0% for basic rate tax payers on £1000, £500 for higher rate tax payers. | 20%, 40% and 45% | 20%, 40% and 45% |
| Personal Allowances | ||
| 2019/20 | 2018/19 | |
| Everyone | £12,500 | £11,850* |
| No longer a higher rate for older tax payers | ||
| *Reduced by £1 for every £2 above income limit, but will not reduce below basic Personal Allowance unless income over £100,000 | ||
| Pensions | |||||
| Annual allowance | 100% of net relevant earnings or £3,600 if higher | ||||
| Capped at: | £40,000 | 2019/20 | |||
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| Lifetime limit | £1.055 million | ||||
| Amounts exceeding lifetime limit taxed at 55% if extracted as a lump sum, or 25% if not | |||||
| Inheritance Tax | ||||||
| Exempt transfers: | ||||||
| Gifts to UK domiciled spouse* | ||||||
| Gifts to charity* | ||||||
| Overseas domiciled spouse up to £325,000* | ||||||
| Annual exemption £3,000* | ||||||
| Small gifts £250* | ||||||
| Wedding gifts – £5000 child, £2500 grandchild or remoter issue, £1000 other* | ||||||
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Non UK assets held by a non domiciled individual*
*To be confirmed |
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| Nil rate band: | £325,000 (18/19 £325,000) | |||||
| Rate of tax at death | 40%* | |||||
| *36% where 10% of estate left to charity | ||||||
| Residence Nil Rate band £150,000 (previously £125,000) | ||||||
| Lifetime tax rate | 20% | |||||
| No tax on transfers to individuals unless death within 7 years | ||||||
| Reduced tax charge on gifts made when death is within 7 years | ||||||
| Years: |
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| % taxable |
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| Capital Gains Tax | |||
| 2019/20 | 2018/19 | ||
| Individual Exemption |
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£11,700 | |
| Chattels Exemption |
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£6,000 | |
| Trusts exemption |
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£5,850 | |
| Transfers between husband and wife living together are exempt. | |||
| Main Rate | 20%^ | 20% | |
| Basic Rate | 10%^ | 10% | |
| Entrepreneurs Rate* | 10% | 10% | |
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* Available on first £10 million of eligible gains in lifetime
^ Does not apply to residential property which remains at 28% and 18% |
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| Corporation Tax | |||
| Year commencing | 1 April 2019 | 1 April 2020 | |
| 19% | 19% | ||
| Main Capital Allowances | |
| Motor cars (based on CO2 emissions) | |
| Less than 75g/km CO2 | 100% |
| 75-130g/km CO2 | 18% rb |
| More than 130g/km CO2 | 8% rb |
| Plant & Machinery * | 18% rb |
| Computer Equipment * | 18% of rb |
| Integral features – | 6% rb |
| Goodwill – | 4% on certain unconnected party transactions only |
| Structures and Buildings Allowance (SBA) | 2% sl |
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*Annual Investment Allowance – 100% allowance on certain capital expenditure up to £200,000pa
rb = reducing balance sl = straight line basis
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| Value Added Tax | |
| Standard Rate | |
| From 1st January 2017 | 20.00% |
| VAT fraction | |
| From 1st January 2017 | 1/6 |
| Turnover registration limit | £85,000 |
| Turnover deregistration limit | £83,000 |
| Cash/annual accounting registration limit | £1.35m excl. VAT |
| Cash/annual accounting | £1.6m excl. VAT |
| Flat rate scheme income | £150,000 excl. VAT |
| Flat rate scheme income deregistration limit | £230,000 incl. VAT |
| VAT Scale Charge: Now based upon the CO2 Emissions of the vehicle concerned | |
| NI Contributions | ||
| 2019/20 | ||
| Class 1 | Employer | Employee |
| Weekly earnings | % of all earnings | |
| £0 – £118 | NIL | NIL |
| £118 – £166 | 0.00% | 0% |
| £167 – £962 | 13.80% | 12% |
| Over £962 | 13.80% | 2% |
| The above rates apply to those not contracted out of S2P. | ||
| Class 1A | Employer | 13.80% |
| Class 2* | S/Employed | £3 pw |
| Class 3 | Voluntary | £115 pw |
| Class 4 | S/Employed | |
| £0 – £8,632 | £0-£8,424 | 0% |
| £8,633 – £50,000 | £8,425 – £46,350 | 9% |
| Over £50,000 | Over £46,350 | 2% |
| * Payable on net earnings over £6,365 (18/19 £6,025) | ||
| Vehicle Benefits |
| Chargeable on all directors and employees |
| Car Benefit*: This is now calculated as a percentage of the original list price of the vehicle. |
| Car Fuel Benefit*: This is now calculated as a percentage of a fixed sum of £24,100 |
| * Percentage used will be dependent on the level of CO2 vehicle emissions |
| Van benefit per vehicle: £3,430 if there is any private use. Travel between home and work is not considered private use |
| Van Fuel Benefit: £655 |
| Mileage Allowances | ||
| The maximum tax-free mileage allowances for employees using their own cars for business are as follows: | ||
| 2019/20 | First 10,000 Miles | 10,000+ miles |
| Car & Van | 45p* | 25p* |
| Motorcycle | 24p* | 24p* |
| Bicycle | 20p* | 20p* |
| Notes: 1 Payments in excess of approved rates are taxable 2 Where payments are made at rates less than the approved rates, employees can claim tax relief on shortfall | ||
| *To be confirmed | ||
| Stamp Duty Land Tax | ||
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Residential Properties
Residential Properties where you are NOT a first-time buyer** SDLT is charged at the following rates for each portion of the purchase price. |
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| Property purchase price | SDLT rate | |
| Up to £125,000 | 0% | |
| The next £125,000 (the portion from £125,001 to £250,000) | 2% | |
| The next £675,000 (the portion from £250,001 to £925,000) | 5% | |
| The next £575,000 (the portion from £925,001 to £1.5 million) | 10% | |
| The remaining amount (the portion above £1.5 million) | 12% | |
SDLT is charged at a flat rate of 15% on residential properties costing more than £500,000 purchased by certain corporate bodies
NOTE – Add 3% to the above rates where it is an additional property.
** First time buyers (including those with shared ownership from 22nd Nov 2017) pay 0% on the first £300,000, 5% between £300,000 and £500,000. Property worth more than this is subject to normal SDLT rates above
| Non-Residential or Mixed Use Property | ||
| SDLT is charged at the following rates for each portion of the purchase price. | ||
| Property purchase price | SDLT rate | |
| Up to £150,000 | 0% | |
| The next £150,001 (the portion from £150,001 to £250,000) | 2% | |
| Above £250,000 | 5% | |
| Leases | ||
| SDLT is charged at the following rates for each portion of the purchase price. | ||
| Net Present Value (NPV) of the lease | SDLT rate | |
| Up to £150,000 | 0% | |
| The next £4,850,000 (the portion from £150,001 to £5,000,000) | 1% | |
| Above £5 million | 2% | |
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Annual Tax on Enveloped Dwellings (ATED) ATED may be payable annually on UK residential properties owned partly or wholly by certain corporate bodies, at the following rates: |
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Property value
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2019/20 |
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| Less than £500,000 | 0 | 0 | |
| £500,000 to £1 million | £3,650 | £3,600 | |
| Between £1 million and £2 million | £7,400 | £7,250 | |
| Between £2 million and £5 million | £24,800 | £24,250 | |
| Between £5 million and £10 million | £57,900 | £56,550 | |
| Between £10 million and £20 million | £116,100 | £113,400 | |
| More than £20 million | £232,350 | £226,950 | |