Income Tax
| 2019/20 | 2018/19 | 2019/20 | 2018/19 |
| £1-£37,500 | £1-£34,500 | 20% | 20% |
| £37,501-£150,000 | £34,501-£150,000 | 40% | 40% |
| Over £150,000 | over £150,000 | 45% | 45% |
- The first £2,000 (£2,000) of dividends will be taxed at 0% (0%), and this amount will be considered into account for computing the income tax slab.
- Any dividends above £2,000 (£2,000) will be taxed at 7.5% (7.5%), 32.5% (32.5%) or 38.1% (38.1%) as the top band of total income.
- The personal savings allowance of an individual exempts interest income of £1,000 (£1,000) for all basic rate taxpayers (20%) and £500 (£500) for a higher rate taxpayers (40%) only, it will not be available to additional rate taxpayers (45%).
- Non-dividend savings income will be taxed at 0% (0%) up to £5,000 (£5,000). However, the 0% rate will not be available if income from other sources, including dividends, exceeds £5,000 (£5,000).
Personal Allowances
| 2019/20 | 2018/19 | |
| Personal allowance | £12,500 | £11,850 |
| Income limit for personal allowance | £100,000 | £100,000 |
| Blind person’s allowance | £2,450 | £2,390 |
| Married couple’s allowance | £8,915 | £8,695 |
| Marriage allowance | £1,250 | £1,190 |
| Trading income allowance | £1,000 | £1,000 |
| Property income allowance | £1,000 | £1,000 |
- Personal allowance to be reduced by £1 for each £2 by which income exceeds £100,000.
- Relief is limited to 10%, and extends to civil partnerships.
- Non taxpayers can transfer up to £1,250 (£1,190) of the personal allowance to a spouse or civil partner who is a basic rate taxpayer.
- Certain income tax reliefs are to be capped at the greater of £50,000 or 25% of the total income, which however excludes charitable donations.
Annual Benefits on Company Cars
The annual benefits are dependent on the level of CO2 emissions.
- Benefit of 16% for emissions of 0-50g/km
- Benefit of 19% for emissions of 51-75g/km
- Benefit of 22% for emissions of 76-94g/km
- The benefit further increases by 1% at 95g/km
- Diesel supplement of 4%, subject to the maximum charge of 37%.
- Taxable benefit for significant private use of vans is £3,350 (£3,350).
- When the fuel is provided for private use in a company car, the taxable benefit percentage is applied to £23,400 (£23,400).
- Benefit for fuel provided for a van with significant private use is £633 (£633).
Pensions
| 2019/20 | 2018/19 | |
| Lifetime allowance | £1,055,000 | £1,030,000 |
| Equivalent to defined benefit pension | £52,750 pa | £51,500 pa
|
| Maximum contribution annual allowance | £40,000
|
£40,000 |
| Tax on excess | Marginal rate | Marginal rate |
| Normal minimum pension age | 55 | 55 |
- Special rules now apply for individuals whose benefits exceed the lifetime allowance, or any previous protected amount.
- Excess over this amount to be charged at 25% plus income tax on the balances drawn, or 55% for the benefits.
- Reduction in the annual allowance by £1 for every £2 if the income exceeds £150,000, up to a limit of £210,000.
Capital Gains Tax
| 2019/20 | 2018/19 | |
| Basic rate taxpayers | 10% | 10% |
| Trustees and 40%/45% taxpayers | 20% | 20% |
| Annual exempt amount – individuals | £12,000 | £11,700
|
| Annual exempt amount – trusts | £6,000 | £5,850
|
| Entrepreneurs’ relief lifetime limit | £10m | £10m
|
| Entrepreneurs’ relief rate | 10% | 10% |
Inheritance Tax
| 2019/20 | 2018/19 | |
| Up to £325,000 (£325,000) (“nil rate band”) | 0% | 0%
|
| Over £325,000 (£325,000) (frozen to 2020/21) | 40% | 40%
|
- Additional nil rate band of £150,000 (£125,000) will be applied when a main residence is passed on death to the direct descendant.
- Additional nil rate band to be reduced by £1 for each £2 if the net value of the estate exceeds £2m.
- Reduced rate of 36% to be applied when 10% or more of a net estate is left to charity.
Tax Efficient Investments
| 2019/20 | 2018/19 | |
| ISA limit | £20,000 | £20,000 |
| Junior ISA limit | £4,368 | £4,260 |
- For all the first time buyers – maximum deposits of £200 per month, plus an initial deposit of up to £1,000.
- Venture Capital Trusts (VCTs): income tax relief at up to 30% on investment up to £200,000, with capital gains tax reliefs.
- Enterprise Investment Scheme (EIS): income tax relief at up to 30% Seed Enterprise
- Investment Scheme (SEIS): income tax relief of 50% on investment up to £100,000
- Social Investment Tax Relief (SITR): income tax relief of 30% on investment up to £1m
- Lifetime ISAs: Available to all the adults under the age of 40, who can contribute up to £4,000 per year.
- All the contributions which are made before the age of 50 will get 25% bonus from the Government.
Air Passenger Duty
| Rates per passenger from 1 April 2019 | Lowest class of travel | Other classes of travel
|
Higher rate
|
| Band A (0-2,000 miles from London) | £13 (£13) | £26 (£26) | £78 (£78)
|
| Band B (over 2,000 miles from London) | £78 (£78) | £172 (£156) | £515 (£468) |
- All the flights from airports in the Scottish Highlands and Islands, and long haul flights from airports in Northern Ireland are exempted.
- Air passenger duty will not be charged for the lowest class of travel for children below the age of 16.
- Higher rate applicable for all aircraft over 20 tones and seating capacity of less than 19 passengers.
Corporation Tax
| Financial year (from 1 April) | 2019 | 2018 |
| Main rate | 19% | 19% |
| Surcharge on bank profits | 8% | 8% |
| Loss annual allowance per group | £5m | £5m |
| Restriction of carried forward losses | 50% | 50%
|
Capital Allowances
| Expenditure on: | 2019/20 | 2018/19 |
| Plant and machinery | 18% | 18% |
| Plant and machinery in certain designated assisted areas | 100% | 100% |
| Motor cars – CO2 emissions; | ||
| ≤50g/km (≤50g/km) | 100% | 100% |
| 50-110g/km (50-110g/km) | 18% | 18% |
| >110g/km (>110g/km) | 6% | 8% |
| New and unused zero emission goods vehicles | 100% | 100%
|
| Long life assets/integral features in buildings | 6% | 8%
|
| Patent rights and know-how | 25% | 25% |
| Mines, oil wells, mineral rights | 25%
|
25% |
| Research and development | 100% | 100% |
| Energy-saving and water efficient plant and machinery | 100% | 100%
|
| Structures and buildings allowance (from 29 October
2018) |
2% | 2%
|
- Starting 1st January 2019 to 31 December 2020, the 100% annual investment allowance will be applied to the first £1m (£200,000) per annum of capital expenditure.
- The allowances will be given on a reducing balance basis.
- The tax relief for expenditure on certain intangibles is to be given by accounting write downs and not on capital allowances.
- Any acquisition of mineral deposits and rights qualify for 10% p.a. only.
National Insurance Contributions
Class 1 Employees
| Weekly earnings | |
| Up to £166 (£162) | Nil |
| £166.01-£962 (£162.01-£892) | 12% |
| Over £962 (over £892) | 2% |
Class 1 Employers
| Weekly earnings | |
| Up to £166 (£162) | Nil |
| Over £166 (Over £162) | 13.8% |
- Businesses and charities can claim a reduction of up to £3,000 (£3,000) of their employers’ contributions (“NIC employment allowance”).
- No employers’ contributions are payable in respect of weekly earnings up to £962 (£892) paid to employees under 21 and apprentices under 25.
- Class 1A (employers only): 13.8% (13.8%) on the amounts of taxable benefits.
- Class 1B (employers only): 13.8% (13.8%) in respect of amounts in a PAYE settlement agreement and the income tax thereon.
- Class 2 (flat rate for self-employed): £3.00 (£2.95) per week on profits above £6,365 (£6,205).
- Class 3 (voluntary): £15.00 (£14.65) per week.
- Class 4 (self-employed): 9% (9%) of profits between £8,632 (£8,424) and £50,000 (£46,350) per annum and 2% (2%) on profits above £50,000 (£46,350).
- A 0.5% (0.5%) annual levy will be payable by employers, charged on pay bills in excess of £3m (£3m).
Patent Box and R&D Tax Credits
| Financial year (from 1 April) | 2019 | 2018 |
| Patent box – effective corporation tax rate | 10% | 10%
|
| R&D tax credit for SMEs | 130% | 130% |
| R&D expenditure credit – minimum rate | 12% | 12%
|
Value Added Taxes
| Value Added taxes | |
| Standard rate | 20% |
| Lower rate | 5% |
| Zero rate | 0% |
Insurance Premium Tax
| Insurance Premium Tax | |
| Standard rate | 12% |
| Higher rate | 20% |
Annual tax on Enveloped Dwellings
- An annual tax on enveloped dwellings is to be paid by a company, which owns a residential property with a value more than £500,000 (£500,000) on 1 April 2017 and after.
- Tax to be charged in bands, from a minimum of £3,650 (£3,600) to a maximum of £232,350 (£226,950)
Stamp duties and Property transaction taxes
| England & Wales: Stamp duty land tax | ||
| Non-residential land and buildings – rates applied cumulatively | ||
| 2019/20 | 2018/19 | |
| £0-£150,000 | 0% | 0% |
| £150,001-£250,000 | 2% | 2% |
| Over £250,000 | 5% | 5% |
| Residential land and buildings – rates applied cumulatively | ||
| 2019/20 | 2018/19 | |
| £0-£125,000 | 0% | 0% |
| £125,001-£250,000 | 2% | 2% |
| £250,001-£925,000 | 5% | 5% |
| £925,001-£1,500,000 | 10% | 10% |
| Over £1,500,000 | 12% | 12% |
- The tax figures are to be calculated inclusive of any VAT.
- For leases, the rate will be based on the discounted rental values.
- Residential property over worth £500,000 purchased by a company will fetch a rate of 15%.
- A 3% surcharge will be applied to all second and additional residential properties on transactions of £40,000 or more.
- All first time buyers (from 22 November 2017), including qualifying shared ownership paying £300,000 or less for a residential property have to pay no stamp duty land tax.
- A 5% stamp duty land tax will be applied for purchases between £300,000 and £500,000.
Scotland: Land and buildings transaction tax
- All lands and buildings transaction tax will be applied in Scotland instead of stamp duty land tax, which will be applied at different rates and bands.
Wales: Land transaction tax
- Land transaction tax will be applied in Wales instead of stamp duty land tax, which will be applied at different rates and bands for purchases from and after 1st April 2018.
Other Stamp Duties
| Other stamp duties | 2019/20 |
| Stamp duty – shares and securities | 0.5% |
| Stamp duty reserve tax | 0.5%/1.5% |
- Stamp duties and other stamp duty reserve taxes will not be charged on any recognized growth markets, which includes AIM and ISDX.