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TAX RATES & ALLOWANCES 2017/18

Income Tax Rates

First £33,500 of taxable income

£33,501 to £150,000

Excess over £150,000

20% basic rate

40%higher rate

45% additional higher rate

The equivalent rates applicable to cash dividends received are a 7.5% ordinary basic rate, a 32.5% upper rate and a 38.1% additional rate. These special rates apply from 2016-17 other than to the first £5,000 of dividends which are taxed at 0%. Dividends from shares in an ISA are ignored.

Starting rate on savings income

0%* (up to £5,000)

*Not available where taxable non-savings income exceeds the £5,000

Tax Allowances

Personal Allowance

£11,500

Note the Personal Allowance reduces by £1 for every £2 of income above £100,000 until a zero PA is reached.

Transferable marriage allowance

£1,150

Personal savings allowance

£1,000* (max savings income exempt)

*For higher rate taxpayers the allowance is £500.

Child benefit Charge

1% of benefit clawed-back for each £100 of income between £50,000 and £60,000

National Insurance Contributions

Employee Class 1

Employer Class 1

Employer Class 1A

Self Employed:

Class 4

Class 2

12% (on income between £8,164pa and £45,000pa, then 2% above)

13.8% (on income above £8,164pa ~ no ceiling)

13.8% (on taxable amount of employee benefits)


9% (on profits between £8,164 and £45,000pa, then 2% above)

£2.85 per week (small earnings exception £6,025pa)

Employment Allowance

Per business

£3,000 offset against employer's Class 1 NIC

Note not available to companies where the director is the sole employee.

Car Benefits

CO2 50gms/km or less

CO2 51~75g/km

CO2 76~94g/km

CO2 95~99g/km

CO2 100~189 g/km

CO2 190g/km and over

9% of list price (12% diesels)

13% of list price (16% diesels)

17% of list price (20% diesels)

18% of list price (21% diesels)

19% of list price (22% diesels) increasing by 1% for every additional 5gms until 189 g/km reached

37% of list price (37% diesels)

Fuel Benefits

Relevant car fuel % multiplied by £22,600

Private Use of Vans

Taxable benefit
~ standard
~zero emissions

Fuel benefit


£3,230
£646

£610

No charge where personal use incidental.

Tax-Free Mileage Allowance ~ Own Vehicle

Cars ~ first 10,000
business miles:

Thereafter

45p per mile

25p per mile

Corporation Tax

Corporate tax rate

19% (applicable to all profit levels)

Capital Allowances

Annual investment allowance

Main pool

Special rate pool

Motor Cars



100% on first £200,000 pa on 'plant'

18% writing down allowance

8% writing down allowance

100% where CO2 of 75gms/km or less

18% where CO2 not exceeding 130gms/km

8% where CO2 131gms/km or more

Research & Development

Capital expenditure

Revenue expenditure

100% allowance

230% (small and medium sized companies)

ISA Limits

ISA annual limit

Junior ISA limit

Lifetime ISA annual limit

Help to Buy ISA monthly limit

£20,000

£4,128

£4,000

£200

Capital Gains Tax

Annual exemption

Chattels exemption

CGT rates:
Up to basic rate limit
Above basic rate limit
Entrepreneurs' rate

First £11,300 of gains (per individual)

£6,000 (per item)

 
10% (18% on gains on certain residential property)
20% (28% on gains on certain residential property)
10% (up to lifetime limit of £10 million gains)

Inheritance Tax

Nil rate band
Residence Nil rate Band

Death rate
Lifetime rate

Annual exemption
Marriage exemption

Small gifts limit
Business property

£325,000 per individual (note 1)
£100,000 (note 2)

40% on excess over nil rate band (note 3)
20% on certain transfers into trust

£3,000 (per donor per year)
£1,000 ~ £5,000 (depending upon donor
/donee relationship
£250 (per donee per year)
100% or 50% relief

(1) Up to 100% of unused proportion of nil rate band can be claimed by surviving spouse or civil partner

(2) Increasing to £175,000 by 6 April 2020

(3) Reduced rate of 36% applies where deceased leaves 10% or more of net estate to charity

Value Added Tax

Standard Rate
Reduced Rate

Registration limit
De-registration limit

Flat rate scheme
Cash accounting scheme
Annual accounting
scheme

20%
5% (e.g. domestic fuel)

£85,000 annual taxable turnover
£83,000

£150,000 turnover limit
£1,350,000 turnover limit
£1,350,000 turnover limit

Stamp Duties ~Land & Buildings (rate applies to each band for all categories)

Residential Properties (main residence)

Value up to £125,000

£125,001 to £250,000

£250,001 to £925,000

£925,001 to £1.5million

Over £1.5 million

0%

2%

5%

10%

12%

Note a 15% rate applies to properties over £500,000 purchased by companies and certain other 'non-natural entities'

Additional Properties (second homes and Buy-to-Let)

Value up to £40,000

£40,001 to £125,000

£125,001 to £250,000

£250,001 to £925,000

£925,001 to £1.5million

Over £1.5million

0%

3%

5%

8%

13%

15%

 

Non-Residential Properties

Value up to £150,000

£150,001 to £250,000

Over £250,000

0%

2%

5%

Previous Years Rates

For a list of rates & allowances for earlier tax years visit the following link at HM Revenue & Customs website: http://www.hmrc.gov.uk/rates/index.htm

Marsh Vision App

The enhanced App can be downloaded free onto your iPhone, iPad or Android device/phone.  

It's packed full of really useful tax tables, calculator, important dates and other key financial information all of which you will be able to access for free, anywhere you have an internet connection on your device.

It has a simple 'arrange to meet' page along with all our contact information as well as links to our latest tax articles and social media pages. Click on the following link to access to the App:

http://www.marshvision.com/marsh-vision-app.asp