Tax Rates – 4 Business guide to various tax rates 2018/19Business 5th October 2018Income tax allowancesPersonal allowance 11,850Income limit for personal allowance 100,000Marriage allowance 1,190Married couple’s allowance 8,695Trading allowance 1,000Property income allowance 1,000 Dividend allowance 2,000Personal savings allowances for: Basic rate taxpayers 1,000Higher rate taxpayers 500 Income tax bandsBasic rate 0 – 34,500Higher rate 34,501 – 150,000Additional rate 150,000 +Income tax ratesBasic 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 weekClass 4 (annually)0 – 8,424 Nil / 8,424 – 46,350 9% / 46,350 + 2% Capital gains taxAnnual exempt amount 11,700General trust exempt amount 5,850 RatesStandard 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 325,000Residence nil rate band 125,000Tax rate on excess 40%Tax rate for chargeable lifetime transfers 20% Corporation tax FY 2018 19% Mileage allowances Cars and vansFirst 10,000 miles 45p / mileOver 10,000 miles 25p / mileMotorcycles 24p / mileBikes 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 40,000Limit beyond which tapering applies 150,000Minimum allowance following taper restriction 10,000Lifetime allowance 1,030,000 Capital allowances Annual investment allowanceRate 100%Maximum investment 200,000Energy-efficient assets rate 100%Writing down allowancesGeneral pool 18%Special rate pool 8%Long life assets pool 8% VATCompulsory registration threshold 85,000Deregistration threshold 83,000Flat rate scheme turnover limit 150,000Annual accounting scheme turnover limit 1,350,000Cash accounting scheme turnover limit 1,350,000Share this:Click to share on Twitter (Opens in new window)Click to share on Facebook (Opens in new window)Related