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Tax rates – 4 Business guide to various tax rates 2018/19

Income tax allowances

Personal allowance 11,850

Income limit for personal allowance 100,000

Marriage allowance 1,185

Married couple’s allowance 8,695

Trading allowance 1,000

Property income allowance 1,000

Dividend allowance 2,000

Personal savings allowances for: Basic rate taxpayers 1,000

Higher rate taxpayers 500

Income tax bands  

Basic rate 0 – 34,500

Higher rate  34,501 – 150,000

Additional rate 150,000 +   

Income tax rates

Basic rate 20%

Higher rate 40%

Additional rate 45%

Dividend ordinary rate 7.5%

Dividend upper rate 32.5%

Dividend additional rate 38.1%

National insurance

Class 1 primary (weekly)

0 – 162 Nil / 162 – 892 12% / 892 + 2%

Class 1 secondary (weekly)

0 – 162 Nil / 162 + 13.8%

Class 2 (annually)

0 – 6,205 Nil / 6,205 +  £2.95 week

Class 4 (annually)

0 – 8,424 Nil / 8,424 – 46,350 9% / 46,350 + 2%

Capital gains tax

Annual exempt amount 11,700

General trust exempt amount 5,850

Rates

Standard rate 10%

Higher rate 20%

Trustees’ rate 20%

Gains on residential property and carried interest 18% / 28%

Gains eligible for entrepreneurs’ relief  10%

Inheritance tax

Nil rate band 325,000

Residence nil rate band 125,000

Tax rate on excess 40%

Tax rate for chargeable lifetime transfers 20%

Corporation tax

FY 2018 19%

Mileage allowances

Cars and vans

First 10,000 miles 45p / mile

Over 10,000 miles 25p / mile

Motorcycles 24p / mile

Bikes 20p / mile

Car benefit

0 – 50g/km CO2 13%

51 – 75g/km CO2 16%

76 – 94g/km CO2 19%

Then add 1% for every additional 5g/km (rounded down to nearest 5g/km) 

Diesel supplement 4%

Maximum benefit rate 37%

Pension contributions

Annual allowance 40,000

Limit beyond which tapering applies 150,000

Minimum allowance following taper restriction 10,000

Lifetime allowance 1,030,000

Capital allowances

Annual investment allowance

Rate 100%

Maximum investment 200,000

Energy-efficient assets rate 100%

Writing down allowances

General pool 18%

Special rate pool 8%

Long life assets pool 8%

VAT

Compulsory registration threshold 85,000

Deregistration threshold 83,000

Flat rate scheme turnover limit 150,000

Annual accounting scheme turnover limit 1,350,000

Cash accounting scheme turnover limit 1,350,000

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