Personal Tax Allowances 2017/18 and 2018/19

The allowances you need to know about for income tax and capital gains tax

A table of the relevant personal tax rates and allowances in the UK are available below.

Income tax

Capital Gains tax

Please get in touch to find out more about the tax-efficient savings options available to you.

Income Tax – Rates, Allowances and Reliefs

Rates (UK except Scotland)

2017/18

2018/19

Basic rate of 20% on income up to:

£33,500

£34,500

Higher rate of 40% on income over the basic rate up to:

£150,000

£150,000

Additional rate of 45% on income over*:

£150,000

£150,000

Starting rate of 0% on savings income up to**:

£5,000

£5,000

Rates (Scotland)

2017/18

2018/19

Basic rate of 20% on income up to:

£31,500

n/a

Higher rate of 40% on income over the basic rate up to:

£150,000

n/a

Additional rate of 45% on income over:

£150,000

n/a

Starter rate of 19% on income up to:

n/a

£13,850

Basic rate of 20% on income over the starter rate up to:

n/a

£24,000

Intermediate rate of 21% on income over the basic rate up to:

n/a

£43,430

Higher rate of 41% on income over the intermediate rate up to:

n/a

£150,000

Top rate of 46% on income over*:

n/a

£150,000

Starting rate of 0% on savings income up to**:

£5,000

£5,000

Personal Savings allowance

2017/18

2018/19

Basic rate taxpayers

£1,000

£1,000

Higher rate taxpayers

£500

£500

Additional rate taxpayers

£0

£0

Dividend allowance

£5,000

£2,000

Tax rate on dividend income (over allowance)

2017/18

2018/19

Basic rate taxpayers

7.5%

7.5%

Higher rate taxpayers

32.5%

32.5%

Additional rate taxpayers

38.1%

38.1%

N.B. The annual dividend allowance is set to reduce significantly. As a married couple there is the option to transfer assets between spouses to make the most of this allowance, whereas others may wish to think about reducing their income from dividends, or utilising tax efficient wrappers where available.

Trusts:

2017/18

2018/19

Standard rate band (generally)

£1,000

£1,000

Rate applicable to trusts: All income (not dividends)

45%

45%

Rate applicable to trusts: Dividends

38.1%

38.1%

Main Personal Allowances and Reliefs

2017/18

2018/19

Personal allowance

£11,500

£11,850

Personal allowance reduced by £1 for each £2 income over:

£100,000

£100,000

Married/Civil partners’ allowance (given at 10%)

– Max (only applies where at least one partner
born before 6/4/1935)

£8,445

£8,695

– Min (only applies where at least one partner
born before 6/4/1935)

£3,260

£3,360

Married/Civil partners’ allowance reduced
by £1 for every £2 income over:

£28,000

£28,900

Blind person’s allowance

£2,320

£2,390

Trading Allowance

£1,000

£1,000

Property Allowance

£1,000

£1,000

Rent a Room tax free amount

£7,500

£7,500

*These rates apply to taxable income over the personal allowance (where the personal allowance applies)

**Only available where taxable non savings income doesn’t exceed the starting rate band

Capital Gains Tax – Rates, Allowances and Reliefs

Rates

2017/18

2018/19

Individuals:

Up to basic rate

10%

10%

Above basic rate

20%

20%

Up to basic rate for residential property & carried interest

18%

18%

Above basic rate for residential property & carried interest

28%

28%

Trusts and Estates

2017/18

2018/19

Trusts and Estates (except residential property and carried interest which has an 8% surcharge as above)

20%

20%

Please note that the rates of CGT shown refer to UK thresholds. Scottish taxpayers may need to consider both UK and Scottish allowances.

Exemptions

2017/18

2018/19

Individuals & estates

£11,300

£11,700

Trusts (generally)

£5,650

£5,850

Chattels

£6,000

£6,000

Entrepreneurs Relief (on lifetime limit of £10,000,000)

10%

10%

Tax Incentivised Investment

2017/18

2018/19

Individual Savings Account (ISA)

£20,000

£20,000

JISA & CTF

£4,128

£4,260

LISA

£4,000

£4,000

Help to Buy ISA

£1,000 initial & £200 per month

£1,000 initial & £200 per month

Venture Capital Trust (VCT) at 30%

£200,000

£200,000

Enterprise Investment Scheme (EIS) at 30% (amounts over £1m for 2018/19 must be in knowledge intensive companies)

£1,000,000

£2,000,000

EIS eligible for CGT deferral relief

No limit

No limit

Seed EIS (SEIS) at 50%

£100,000

£100,000

SEIS CGT Reinvestment Relief

50%

50%

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