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Krogh & Partners Limited
 
Your auditor, accountant and advisor in the United Kingdom

Tax rates

Tax rates 2018/19
Income Tax
Annual investment limits
Vehicle Benefit
Tax free mileage allowances
National Insurance Contributions
Pension contributions
Inheritance Tax
Value Added Tax
Capital Gains Tax
Corporation Tax
Main capital allowances
Property Taxes
Key dates and deadlines
Useful rates


Income Tax





Allowances



2017/18
2018/19
Personal Allowance (PA) * 
11,500
11,850
Marriage Allowance ***
1,150
1,190
Blind Person's Allowance 
2,320
2,390
Rent a room relief **
7,500
7,500
Trading income **
1,000
1,000
Property income **
1,000
1,000



*PA will be withdrawn at every 1 for every 2 by which 'adjusted income' exceeds 100,000. There will therefore be no allowance given if adjusted income is 123,000 or more (2017/18: 123,000).

***The part of the PA that is transferable to a spouce or civil partner who is not a higher or top rate tax payer

**If gross income exceeds it, the limit may be deducted instead of actul expenses.



Rate Bands

2017/18

2018/19
Basic rate band (BRB)   
33,500
34,500
Higher rate band (HRB) 
33,501-150,000
34,501-150,000
Additional rate    
over 150,000
over 150,000
Personal Savings Allowance (PSA)


- Basic rate taxpayer
1,000
1,000
- Higher rate taxpayer
500
500
Dividend Allowance
5,000
2,000

BRB (Scotland: intermidiate rate band) and additional rate threshold are increased by personal pension conytibutions (up to permitted limit) and Gift Aid donations

Tax rates



2017/18
2018/19
Rates differ for General/Savings/Dividends income
G
S
D
G
S
D
Basic rate
20%
20%
7.5%
20%
20%
7.5%
Higher rate
40%
40%
32.5%
40%
40%
32.5%
Additional rate
45%
45%
38.1%
45%
45%
38.1%



General income (salary, pensions, business profits, rent) usually uses personal allowance, basic rate and higher rate bands before savings income (interest). Scottish taxpayers are taxed at different rates on general income (see below).

To the extent that savings income falls in the first 5,000 of the basic rates band, it is taxed at nil rather than 20%.

The PSA taxes interest at nil, where it would otherwise be taxable at 20% or 40%.

Dividens are normlly taxed as the 'top slice' of income. The DA taxes the first 2,000 (2017/18; 5,000) of dividend income at nil, rather than the rate that would otherwise apply.



High Income Child Benefit Charge (HICBC)

1% of child benefit for each 100 of adjusted net income between 50,000 and 60,000.

Remittance basis charge

For non-UK domiciled individuals who have been UK resident in at least:


2017/18

2018/19
7 of the preceding 9 tax years
30,000
30,000
12 of the preceding 14 tax years
60,000
60,000
15 of the preceding 20 tax years
Deemd to be
UK domiciled
Deemed to be
UK domiciled