Tax Tables

2017/18 Tax Tables

Income Tax

Rates 17/18 16/17
Starting rate 0% 0%
On savings income up to* £5,000 £5,000
Basic rate of 20% on income up to £33,500 £32,000
Higher rate of 40% on income £33,500-£150,000 £32,001-£150,000
Additional rate of 45% on income over £150,000 £150,000
Dividends for: Basic rate taxpayers 7.5% 10%
Higher rate taxpayers 32.5% 32.5%
Additional rate taxpayers 38.1% 37.5%
Trusts: Standard rate band generally £1,000 £1,000
Rate applicable to trusts – dividends 38.1% 37.5%
Rate applicable to trusts – other income 45% 45%

*Not available if taxable non-savings income exceeds the starting rate band.

Main Personal Allowances and Reliefs

17/18 16/17
Personal (basic) £11,500 £11,000
Personal reduced if net income exceeds* £100,000 £100,000
Transferable tax allowance for married couples £1,150 £1,100
Personal (age) if born between 6/4/38 and 5/4/48 N/A N/A
Personal (age) if born before 6/4/38 £11,500 £11,000
Personal (age) reduced if net income exceeds* £27,700 £27,700
Married couple’s allowance*† – maximum £8,445 £8,355
Married couple’s allowance*† – minimum £3,260 £3,220
Blind person’s allowance £2,320 £2,290
Rent-a-room tax-free income £7,500 £7,500

*£1 reduction for every £2 of additional income over the income threshold.

†Relief at 10% if at least one of the couple was born before 6/4/35.

Venture Captital Trust (VCT) at 30%

17/18 16/17
Tax-free dividends. No CGT on disposal. £200,000 £200,000

Enterprise Investment Sceme (EIS) at 30%

17/18 16/17
£1,000,000 £1,000,000
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%

Registered Pensions

17/18 16/17
Lifetime allowance £1,000,000 £1,000,000
Annual allowance £40,000 £40,000
Money purchase annual allowance £4,000 £10,000
Annual allowance charge on excess 20%–45% 20%–45%

Max. pension commencement lump sum 25% of pension benefit value

Lifetime allowance charge if excess drawn as cash 55% / income 25%

Maximum relievable personal contribution capped by the annual allowance
and 100% of relevant UK earnings or £3,600 if greater.

National Insurance Contributions

Class 1 Employed Not Contracted-Out of State Second Pension (S2P) 17/18 Employee Employer
NICs rate 12% 13.8%
NICs charged up to £886 pw No limit
2% NICs on earnings over £886 pw N/A

Limits and Thresholds 

Weekly Monthly Annual
Lower earnings limit £113 £490 £5,880
Primary earnings threshold £157 £680 £8,160
Secondary earnings threshold £157 £680 £8,160
Upper accrual point £770 £3,337 £40,040
Upper earnings limit and upper secondary earnings threshold (under 21) £866 £3,750 £45,000
Self-Employed Class 2 Flat rate £2.85 pw £148.20 pa
Self-Employed Small profits threshold £6,025 pa
Self-Employed Class 4 On profits £8,164–£45,000 pa 9%
Over £45,000 pa 2%
Class 3 Voluntary Flat rate £14.25 pw £741.00 pa

Basic State Pension

17/18 Weekly Annual
Full basic state pension £159.55 £8,296.60

 Property Transaction Taxes (SDLT)

Note: 15% on total value of all UK properties worth over £500,000 if purchased

by companies and certain other non-natural entities.

Stamp Duty and SDRT: Stocks and marketable securities 0.5%

No charge to stamp duty unless amount due exceeds £5.

Residential property value UK (excl. Scotland) on slices Rate %
Up to £125,000 0
£125,001–£250,000 2
£250,001–£925,000 5
£925,001–£1,500,000 10
Over £1,500,000 12

Tax-Free Savings

ISA Limits 17/18
Individual Savings Account (ISA) £20,000
Junior ISA and Child Trust Fund £4,128

Capital Gains Tax (CGT)

Tax Rates – Individuals   17/18 16/17
Up to basic rate limit 10% / 18% 18%
Above basic rate limit 20% / 28% 28%
Tax Rate – Trusts and Estates     20% / 28% 28%

*8% surcharge on residential property

Exemptions

Individuals, estates £11,300 £11,100
Trusts generally £5,650 £5,500
Chattels exemptions: proceeds up to £6,000 £6,000
Max. chargeable gains 5⁄3 rds of excess proceeds over limit.

Entrepreneurs’ Relief

Gains taxed at 10% up to lifetime limit of £10,000,000 £10,000,000

For trading businesses and companies (minimum 5% employee/director
shareholding) held for one year or more.

 

Inheritance Tax (IHT)

17/18 16/17
Nil-rate band* £325,000 £325,000
Rate of tax on excess 40% † 40%†
Lifetime transfers to and from certain trusts 20% 20%
Exemption for non-UK domiciled
spouse/civil partner
£325,000 £325,000

100% relief: businesses, unlisted and AIM companies, certain farmland/buildings

50% relief: certain other business assets e.g. farmland let pre 1/9/95

Annual exempt gifts of: £3,000 per donor £250 per donee *Up to 100% of the unused proportion of a deceased spouse’s/civil partner’s nil-rate band can be claimed on the survivor’s death.

†36% where at least 10% of net estate left to charity.

Resident Nil Rate Band (RNRB) introduced April 2017 at £125,000 and increasing to £150,000 in April 2018 and £175,000 in April 2019.

 

Tax charge on gifts within 7 years of death

  Years before death 0 – 3 3 – 4 4 – 5 5 – 6 6 – 7
% of death tax charge 100 80 60 40 20

Corporation Tax

Effective rate on profits to 31/3/18 31/3/17
Main Rate 19% 20%

The Tax Tables are for information only based on our understanding of tax rates and reliefs. We are not responsible for any errors or omissions and nothing on this page constitutes tax advice. If you would like advice, please get in touch.

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