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Our Tax Rates Centre provides a summary of some of the essential tax rates, dates and figures for 2018/19.
2018/19 Tax Rates Centre is for guidance only and professional advice should be obtained before acting on any information contained as no responsibility can be accepted for loss occasioned as a result of action taken or refrained from in consequence of its contents.
|Income tax rates (other than savings and dividend income)
Scotland income tax rates (savings and dividend income are taxed using UK rates and bands)
Not available if the taxable non-savings income exceeds the starting rate band. £1,000 of savings income for basic rate taxpayers (£500 for higher rate) may be tax free.
The first £2,000 (£5,000 2017/18) of dividends are tax free.
Personal allowance (PA)
Entrepreneurs’ Relief and Investors’ Relief
Qualifying gains will be taxed at 10%. Claims may be made on more than one occasion up to a ‘lifetime’ total of £10 million per relief.
Plant and Machinery:
|Investment for use in Enterprise Zones, energy saving and environmentally beneficial equipment, new low CO2 emission cars (up to 50g/km from 1 April 2018), natural gas/hydrogen refuelling equipment: First year allowance (FYA).||
|Annual investment allowance (AIA) – on the first £200,000 of investment
(excludes cars and other expenditure already qualifying for 100% FYA)
|Writing down allowance on expenditure not qualifying for AIA or FYA:|
Long-life assets, integral features of buildings, cars over 110g/km from 1/6 April 2018
Other plant and machinery
VAT on fuel for private use in cars
Where businesses wish to reclaim the input VAT on fuel which has some degree of private use, they must account for output VAT for which they may use the flat rate valuation.
The table shows the VAT chargeable for quarters commencing on or after 1 May 2017. Please contact us for any updated rates.
All lifetime transfers not covered by exemptions and made within seven years of death will be added back into the estate for the purpose of calculating the tax payable. Tax attributable to such transfers is then subject to Taper Relief:
Chargeable on directors and employees.
The taxable benefit is calculated as a percentage of the list price of the car, on the day before it was first registered, plus certain accessories. This percentage depends upon the rate at which the car emits carbon dioxide (CO2), and the fuel type.
You can find the appropriate percentage for 2018/19 using the following table:
|Petrol %||Diesel %|
|180 and above||37|
The diesel supplement is increased from 3% to 4% from 6 April 2018, although the maximum fuel rate remains at 37% (unless the car is registered on or after 1 September 2017 and meets the Euro 6d emissions standard).
Company car fuel benefit is charged unless the cost of all fuel for private use is borne by the employee. The taxable benefit is calculated by applying the appropriate percentage to the car fuel benefit charge multiplier, which is £23,400 in 2018/19.
Where VAT is to be reclaimed on fuel for private use, the employer also has to account for output tax based on a flat rate charge derived from the vehicle’s CO2 emissions.
Fuel-only advisory rates
|Up to 1400cc||11p||9p||7p|
|1401cc – 1600cc||14p||8p|
|1601cc to 2000cc||11p|
|Rates from 1 March 2018 and are subject to change. Note the advisory fuel rates are revised in March, June, September and December. Please contact us for any updated rates.|
Company van benefit is generally not related to CO2 emissions but is a set figure of £3,350 with an extra £633 where fuel for private use is provided. Van benefit charge for zero emission vans is £1,340. There is no fuel benefit for such vans.
|Van and fuel charge||Van £||Fuel £||Total £|
|Tax (20% taxpayer)||£670.00||£126.60||£796.60|
|Tax (40% taxpayer)||£1,340.00||£253.20||£1,593.20|
|Tax (45% taxpayer)||£1,507.50||£284.85||£1,792.35|
|Employer’s class 1A NICs||£462.30||£87.35||£549.65|
It is quite normal practice for employees to be reimbursed at a reasonable mileage rate for business use of their own vehicles. The income tax and national insurance contributions (NICs) position is as follows:
|A statutory system of Approved Mileage Allowance Payments (AMAPs) applies for employees using their own vehicles for business journeys, as follows:|
|Cars and vans:
on the first 10,000 miles in the tax year
on each additional mile above this
|45p per mile
25p per mile
|Motorcycles||24p per mile|
|Bicycles||20p per mile|
Unless the employee is reimbursed at a rate higher than the AMAP, the payments do not need to be reported on a P11D. If the employer pays less than these rates, it is possible for the employee to claim income tax relief for the shortfall.
Rates of up to 5p per mile, per passenger, are also tax and NICs free when paid for the carriage of fellow employees on the same business trip. This also covers volunteers who drive for hospital car services etc, even though they are not strictly employees.
|Class 1||Employee (primary)|
|Payable on weekly earnings of|
|Below £116 (lower earnings limit)||Nil|
|£116 – £162 (primary threshold)||0%*|
|£162.01 – £892 (upper earnings limit)||12%**|
|* No NICs are actually payable but notional Class 1 NIC is deemed to have been paid; this protects certain state benefit entitlements.
** Over state pension age, the employee contribution is generally nil
|Up to £162 (secondary threshold)||Nil|
|£162.01 – £892 (upper secondary threshold – under 21s)||0%|
|£162.01 – £892 (apprentice upper secondary threshold for under 25s)||0%|
|Employment Allowance||Up to £3,000 (per year)|
|Class 1A (on relevant benefits)||13.8%|
|Class 1B (on PAYE settlement arrangement)||13.8%|
|Class 2 (Self employed)||£2.95 per week|
|Small profits threshold||£6,205 per annum|
|Class 3 (Voluntary)||£14.65 per week|
|Class 4* (Self employed on annual profits)|
|£8,424 – £46,350||9%|
|Excess over £46,350||2%|
|*Exemption applies if state pension age was reached by 6 April 2018.|
There is no financial limit on the amount that may be contributed to a registered pension scheme. The maximum amount on which an individual can claim tax relief in any tax year is the greater of the individual’s UK relevant earnings or £3,600 (gross).
If total pension input exceeds the annual allowance (£40,000) there may be a tax charge on the excess. Where the annual allowance limit is not fully used it may be possible to carry the unused amount forward for three years.
The annual allowance may be reduced where adjusted income exceeds £150,000. A £4,000 limit may apply where money purchase pensions are accessed.
|Maximum age for tax relief||74|
|Minimum age for taking benefits||55|
|Lifetime allowance charge|
|– lump sum paid||55%|
|– monies retained||25%|
|on cumulative benefits exceeding||£1,030,000*|
*Subject to transitional protection for excess amount.
- Individuals are able to claim higher rate relief on cash gifts and payments to charities under gift aid. Basic rate tax is treated as having been deducted, so you must pay enough tax for the year to cover the tax witheld from your Gift Aid payment.
- Special tax reliefs apply to gifts to charities of certain types of shares and securities, or land and buildings.
- Individuals have the opportunity to make a claim for charitable donations made in one tax year to be treated as if they had been made in the previous tax year. For example, a request could be made for Gift Aid payments made between 6 April 2017 and the date that the 2017 return is filed to be treated as if they were made in the year to 5 April 2017. This would mean that a payment could rank for higher rate tax relief for 2016/17, even if the donor is liable at basic rate only in 2017/18. The request would normally be made by completing the relevant box in the 2017 tax return, and the opportunity to carry back donations is lost once that return has been filed (provided this is no later than 31 October 2017 or 31 January 2018, as appropriate). It is not possible to amend the 2017 tax return in order to carry back a donation.
Give As You Earn (Payroll Giving)
- Employees may authorise participating employers to deduct donations from their gross salary for forwarding to their nominated charities.
- Employees receive tax relief in full on their donations.
The rate of stamp duty / stamp duty reserve tax on the transfer of shares and securities is generally payable at 0.5%.
Stamp Duty Land Tax (SDLT)
On the transfer of property in England and Northern Ireland, the SDLT is:
|Value up to £125,000||0%|
|Over £125,000 – £250,000||2%|
|Over £250,000 – £925,000||5%|
|Over £925,000 – £1,500,000||10%|
|As announced in the Autumn Budget, from 22 November 2017 first-time buyers paying £300,000 or less for a residential property will pay no SDLT. First-time buyers paying between £300,000 and £500,000 will pay SDLT at 5% on the amount of the purchase price in excess of £300,000.
In most cases these rates also apply to property lease purchases but an additional 1% is due on new leases where the net present value (NPV) of rent is more than £125,000.
The purchase of additional residential properties may result in 3% being added to each of the above rates.
|Value up to £150,000||0%|
|Over £150,000 – £250,000||2%|
|In most cases these rates also apply to property lease purchases but an additional 1% is due on new leases with a NPV of more than £150,000 and this rises to 2% on leases with an NPV greater than £5m.|
On the transfer of property in Scotland, the Land and Buildings Transaction Tax is:
|Value up to £145,000||0%|
|Over £145,000 – £250,000||2%|
|Over £250,000 – £325,000||5%|
|Over £325,000 – £750,000||10%|
|Value up to £150,000||0%|
|Over £150,000 – £350,000||3%|
The rates apply to the portion of the total value which falls within each band. Additional LBTT of 3% may apply to the purchase of additional residential properties.
The Scottish government is planning to introduce a new relief for first-time homebuyers for purchases up to £175,000, subject to consultation. Where a property costs more than this amount, first-time buyers will benefit from relief on the portion of the price below the threshold.
From 1 April 2018, Wales will roll out its own stamp duty equivalent, the Land Transaction Tax (LTT), which preserves the essential structure of SDLT but with some key differences, including a higher starting threshold, together with higher rates of duty for some residential properties with a greater value. The existing first-time buyer exemption will also be removed.
The proposed new LTT rates are:
|Residential (£)||Rate (%)|
|Up to 180,000||0|
|180,000 – 250,000||3.5|
|250,000 – 400,000||5|
|400,000 – 750,000||7.5|
|750,000 – 1,500,000||10|
Additional LTT of 3% may apply to the purchase of additional residential properties.
|Non-residential (£)||Rate (%)|
|Up to 150,000||0|
|150,000 – 250,000||1|
|250,000 – 1,000,000||5|