This guide provides a summary of key tax rates, allowances and reliefs for 2016/17, 2017/18 and 2018/19. It includes information on business taxes, indirect taxes, personal taxes, national insurance contributions and the apprenticeship levy.
22 March 2018
Click on the relevant section below to see the rates and allowances for 2016/17, 2017/18 and 2018/19.
The car benefit is calculated at a percentage of the car’s list price when new. The list price includes accessories and is not subject to an upper limit. The list price is reduced for capital contributions made by the employee up to £5,000. Special rules may apply to cars provided for disabled employees.
The percentages are given in the table below and are based on the car's CO2 emissions in grams per kilometre up to a maximum of 37%. For diesel cars add a 3% supplement (4% from April 2018), but the maximum is still 37%. Cars that meet the Real Driving Emissions Step 2 (RDE2) standard are exempt from the diesel supplement.
For cars registered before 1 January 1998 and cars with no agreed CO2 emissions the charge is based on engine size.
| CO2 emissions (grams per kilometre) | % of car's list price taxed 2016/17 | % of car's list price taxed 2017/18 | % of car's list price taxed 2018/19 | |||
|---|---|---|---|---|---|---|
| Petrol engine | Diesel engine | Petrol engine | Diesel engine | Petrol engine | Diesel engine | |
| 0-50 | 7 | 10 | 9 | 12 | 13 | 17 |
| 51-75 | 11 | 14 | 13 | 16 | 16 | 20 |
| 76-94 | 15 | 18 | 17 | 20 | 19 | 23 |
| 95-99 | 16 | 19 | 18 | 21 | 20 | 24 |
| 100-104 | 17 | 20 | 19 | 22 | 21 | 25 |
| 105-109 | 18 | 21 | 20 | 23 | 22 | 26 |
| 110-114 | 19 | 22 | 21 | 24 | 23 | 27 |
| 115-119 | 20 | 23 | 22 | 25 | 24 | 28 |
| 120-124 | 21 | 24 | 23 | 26 | 25 | 29 |
| 125-129 | 22 | 25 | 24 | 27 | 26 | 30 |
| 130-134 | 23 | 26 | 25 | 28 | 27 | 31 |
| 135-139 | 24 | 27 | 26 | 29 | 28 | 32 |
| 140-144 | 25 | 28 | 27 | 30 | 29 | 33 |
| 145-149 | 26 | 29 | 28 | 31 | 30 | 34 |
| 150-154 | 27 | 30 | 29 | 32 | 31 | 35 |
| 155-159 | 28 | 31 | 30 | 33 | 32 | 36 |
| 160-164 | 29 | 32 | 31 | 34 | 33 | 37 |
| 165-169 | 30 | 33 | 32 | 35 | 34 | 37 |
| 170-174 | 31 | 34 | 33 | 36 | 35 | 37 |
| 175-179 | 32 | 35 | 34 | 37 | 36 | 37 |
| 180-184 | 33 | 36 | 35 | 37 | 37 | 37 |
| 185-189 | 34 | 37 | 36 | 37 | 37 | 37 |
| 190-194 | 35 | 37 | 37 | 37 | 37 | 37 |
| 195-199 | 36 | 37 | 37 | 37 | 37 | 37 |
| 200 and over | 37 | 37 | 37 | 37 | 37 | 37 |
Find more information at: gov.uk/expenses-and-benefits-company-cars
Car fuel benefit charge multiplier.
| 2016/17 | 2017/18 | 2018/19 |
|---|---|---|
| £22,200 | £22,600 | £23,400 |
Car fuel benefit applies if an employee has the benefit of private fuel for a company car. The benefit is calculated by applying the percentage used to calculate the car benefit to a 'fuel charge multiplier'. The charge does not apply to certain environmentally-friendly cars. The fuel benefit is reduced to nil only if the employee pays for all private fuel.
Find more information at: gov.uk/expenses-and-benefits-company-cars
Van benefit charge
| 2016/17 | 2017/18 | 2018/19 | |
|---|---|---|---|
| Vans which emit CO2 | £3,170 | £3,230 | £3,350 |
| Vans which do not emit CO2 when driven | £630 | £646 | £1,340 |
Van fuel benefit charge
| 2016/17 | 2017/18 | 2018/19 |
|---|---|---|
| £598 | £610 | £633 |
Van benefit is chargeable if the van is available for an employee’s private use. The charges do not apply if a restricted private use condition is met throughout the year. A fuel benefit may also be chargeable if an employee has the benefit of private fuel paid for in respect of a company van.
Find more information at: gov.uk/expenses-and-benefits-company-vans
Advisory rates only apply where employers reimburse employees for business travel in a company car or require employees to repay the cost of fuel used for private travel in a company car.
If the rate paid per mile of business travel is no higher than the advisory rate for the particular engine size and fuel type of the car, HMRC will accept that there is no taxable profit and no Class 1 NIC liability.
| Engine size | Fuel type | From 01/06/2015 | From 01/09/15 | From 01/12/15 | From 01/03/16 | From 01/07/17 | From 01/12/17 |
|---|---|---|---|---|---|---|---|
| 1400cc or smaller | Petrol | 12p | 11p | 11p | 10p | 11p | 11p |
| 1400cc or smaller | LPG | 8p | 7p | 7p | 7p | 7p | 7p |
| 1600cc or smaller | Diesel | 10p | 9p | 9p | 8p | 9p | 9p |
| 1401cc to 2000cc | Petrol | 14p | 14p | 13p | 12p | 14p | 14p |
| 1401cc to 2000cc | LPG | 9p | 9p | 9p | 8p | 9p | 9p |
| 1601cc to 2000cc | Diesel | 12p | 11p | 11p | 10p | 11p | 11p |
| Bigger than 2000cc | Petrol | 21p | 21p | 20p | 19p | 20p | 21p |
| Bigger than 2000cc | LPG | 14p | 14p | 13p | 13p | 14p | 14p |
| Bigger than 2000cc | Diesel | 14p | 13p | 13p | 13p | 13p | 13p |
Find more information at: gov.uk/government/publications/advisory-fuel-rates
MAP rates per business mile (for business travel in employee's own vehicle).
| Cars and vans | Rate per mile | |||
|---|---|---|---|---|
| 2016/17 | 2017/18 | 2018/19 | ||
| Up to 10,000 miles | 45p | 45p | 45p | |
| Over 10,000 miles | 25p | 25p | 25p | |
| Bicycles | 20p | 20p | 20p | |
| Motorcycles | 24p | 24p | 24p | |
Find more information at: gov.uk/expenses-and-benefits-business-travel-mileage
| Plant and machinery | 2016/17 | 2017/18 | 2018/19 |
|---|---|---|---|
| Annual investment allowance of 100% on expenditure up to | £200,000 | £200,000 | £200,000 |
| Main writing down allowance rate 1 | 18% | 18% | 18% |
| Special rate pool (long life assets and integral features within a building) 1 | 8% | 8% | 8% |
| Energy saving/environmentally beneficial assets 2 | 100% | 100% | 100% |
| Commercial or industrial building in an enterprise zone 3 | 100% | 100% | 100% |
| Research and development 4 | 100% | 100% | 100% |
| Business premises renovation allowance 5 | 100% | N/A | N/A |
| Motor cars 6 | 2016/17 | 2017/18 | 2018/19 |
|---|---|---|---|
| Low emission less than or equal to 75g/km | 100% | 100% | 100% |
| Emissions between 75/km or equal to 130g/km | 18% | 18% | 18% |
| Emissions greater than 130g/km | 8% | 8% | 8% |
Notes:
[1] Reducing balance
[2] See enhanced capital allowance scheme (ECA)
[3] Transitional rules apply until 2020
[4] Extra credits are available - see below
[5] Regime ended on 31 March 2017 for corporation tax and 5 April 2017 for income tax
[6] These rates apply to new cars. Second hand and electric cars with emissions equal to or below 130g/km can claim 18%
Find more information at: gov.uk/topic/business-tax/capital-allowances
| Rates | Financial year commencing 1 April 2016 | Financial year commencing 1 April 2017 | Financial year commencing 1 April 2018 |
|---|---|---|---|
| Main rate | 20% | 19% | 19% |
Find more information at: gov.uk/topic/business-tax/corporation-tax
| North Sea oil and gas ring fenced profits rates | Financial year commencing 1 April 2016 | Financial year commencing 1 April 2017 | Financial year commencing 1 April 2018 |
|---|---|---|---|
| Small profits rate (under £300,000) | 19% | 19% | 19% |
| Main rate | 30% | 30% | 30% |
| Main rate relief | 11/400 | 11/400 | 11/400 |
| Supplementary rate charge | 20% [1] | 10% | 10% |
Notes:
[1] Supplementary charge rate reduced to 10% for accounting periods starting on or after 1 January 2016.
Find out more at: gov.uk/guidance/oil-gas-and-mining-ring-fence-corporation-tax
| 2016/17 | 2017/18 | 2018/19 | |
|---|---|---|---|
| Rate | 25% | 25% | 25% |
Find more information at: gov.uk/government/publications/diverted-profits-tax-guidance
Since 1 April 2013 ATED is payable by non-natural persons that own high value residential property. ATED does not apply to individuals or to entities which use residential property for a qualifying business purpose.
The amount of ATED is worked out using a banding system based on the value of the property as at 1 April 2012 (or subsequent acquisition date).
A new valuation will be required as at 1 April 2017 for the 2018/19, 2019/20, 2020/21, 2021/22 and 2022/23 charges.
| Property value | Charge for 2016/17 | Charge for 2017/18 | Charge for 2018/19 |
|---|---|---|---|
| £500,001 to £1m | £3,500 | £3,500 | £3,600 |
| Over £1m to £2m | £7,000 | £7,050 | £7,250 |
| Over £2m to £5m | £23,350 | £23,550 | £24,250 |
| Over £5m to £10m | £54,450 | £54,950 | £56,550 |
| Over £10m to 20m | £109,050 | £110,100 | £113,400 |
| Over £20m | £218,200 | £220,350 | £226,950 |
Find more information at: gov.uk/guidance/annual-tax-on-enveloped-dwellings-the-basics
Since 1 April 2013 profits from qualifying patent interests are taxed at 10%. This is phased in over five years. The rules were amended from 1 July 2016 to make the regime compliant with the new international nexus approach.
| Year commencing 1 April | 2014 | 2015 | 2016 | 2017 | 2018 |
|---|---|---|---|---|---|
| Percentage of benefits available | 70% | 80% | 90% | 100% | 100% |
Find more information at: gov.uk/guidance/corporation-tax-the-patent-box
Research and development (R&D) relief is a company tax relief that can either reduce a company's tax bill or provide a cash sum paid by HMRC. It is based on the company’s expenditure on R&D projects that seek an advance in science or technology. The activities that constitute R&D for tax purposes are defined within special BIS guidelines.
The R&D tax credit works by allowing companies an increased or enhanced deduction in respect of qualifying expenditure on R&D activities.
| Additional deduction for costs[1] | 1 April 2016 | 1 April 2017 | 1 April 2018 |
|---|---|---|---|
| SMEs | 130% | 130% | 130% |
| SME expenditure credit[2] | 14.5% | 14.5% | 14.5% |
Notes:
[1] The additional deduction is in the addition to the claimed cost.
[2] SMEs that make losses can surrender the deduction in exchange for payment
Find more information at: gov.uk/guidance/corporation-tax-research-and-development-rd-relief
Finance Act 2013 introduced an 'above the line' credit at a rate of 10% for large companies for research and development (R&D) expenditure incurred on or after 1 April 2013.
| From 1 April 2016 | From 1 April 2017 | From 1 April 2018 | |
|---|---|---|---|
| Credit | 11% | 11% | 12% |
Find more information at: gov.uk/guidance/corporation-tax-research-and-development-rd-relief
The Apprenticeship Levy (AL) is a new tax, which started on 6 April 2017, on employers with a pay bill of over £3m. It will be payable at the rate of 0.5% of the pay bill.
The ‘pay bill’ is amounts on which Class 1 secondary NIC is calculated, so runs from £nil, not from the lower earnings limit or NIC secondary threshold.
Employers are entitled to an annual levy allowance (LA) of £15,000 to set against the levy.
They can use one-twelfth of the levy allowance per tax month on a cumulative basis; unused levy allowance can be carried forward and used in a later month within the same year.
Connected employers, connected charities and single employers with more than one PAYE scheme have to decide at the start of the tax year how to share the LA between their PAYE schemes.
| 2017/18 | 2018/19 | |
|---|---|---|
| Apprentice levy rate | 0.5% | 0.5% |
| Apprenticeship levy allowance | £15,000 | £15,000 |
Find more information at: gov.uk/guidance/pay-apprenticeship-levy
SDLT is payable on land and property transactions in England and Northern Ireland. It applies to transactions in Wales up to 4 April 2018, from which date the Welsh land transaction tax (LTT) will apply. In Scotland, the land and buildings transaction tax replaced SDLT from April 2015
Residential property
| Property value | Rate[1] | Rate from 1 April 2017 on purchase of additional property [1] |
|---|---|---|
| £0-£125,000 | Nil | 3% |
| £125,001-£250,000 | 2% | 5% |
| £250,001-£925,000 | 5% | 8% |
| £925,001-£1.5m | 10% | 13% |
| Over £1.5m | 12% | 15% |
Notes:
[1] On the portion of value above the threshold (slice system)
Rates for first time buyers (for properties worth £500,000 or less)
| Property value | Rate on or after 22 November 2017 [1] |
|---|---|
| £0-£300,000 | 0% |
| £300,001-£500,000 | 5% |
| £500,000+ | Standard rates above apply |
Notes:
[1] On the portion of value above the threshold (slice system)
Non-residential property
Purchases and lease premiums
| Property value | Up to 16 March 2016[1] | Property value | On or after 17 March 2016[2] |
|---|---|---|---|
| £0-£150,000 | Nil | £0-£150,000 | Nil |
| £150,001-£250,000 | 1% | £150,001-£250,000 | 2% |
| £250,001-£500,000 | 3% | Over £250,000 | 5% |
| Over £500,000 | 4% |
Leases
| Net present value (NPV) of the lease | Up to 16 March 2016 | Net present value (NPV) of the lease | On or after 17 March 2016 |
|---|---|---|---|
| £0-£150,000 | Nil | £0-£150,000 | Nil |
| Over £150,000 | 1% | £150,001-£5m | 1% |
| Over £5m | 2% |
Notes:
[1] On entire property value (slab system).
[2] On the portion of the value above the threshold (slice system).
Find more information at: gov.uk/topic/business-tax/stamp-taxes
| Rates and limits | From 1 April 2016 | From 1 April 2017 | From 1 April 2018 |
|---|---|---|---|
| Standard rate | 20% | 20% | 20% |
| Reduced rate | 5% | 5% | 5% |
| Annual registration limit | £83,000 | £85,000 | £85,000 |
| Annual de-registration limit | £81,000 | £83,000 | £83,000 |
| Cash and annual accounting scheme turnover limit | £1.35m | £1.35m | £1.35m |
| Cash or annual accounting - exit turnover limit | £1.6m | £1.6m | £1.6m |
| Flat rate schemes - entry turnover limit | £150,000 | £150,000 | £150,000 |
| Flat rate schemes - exit turnover limit | £230,000 | £230,000 | £230,000 |
Find out more at: gov.uk/topic/business-tax/vat
| Rates - Class 1 Employer and Employee | 2016/17 | 2017/18 | 2018/19 |
|---|---|---|---|
| Thresholds (per week) | |||
| Lower earnings limit (LEL) (employees and employers) | £112 | £113 | £116 |
| Primary threshold (PT) (employees) | £155 | £157 | £162 |
| Secondary threshold (ST) (employers) | £156 | £157 | £162 |
| Upper earnings limit (UEL) (employees only) | £827 | £866 | £892 |
| Upper secondary threshold (UST) for under 21s (employers) |
£827 | £866 | £892 |
| Apprentice upper secondary threshold (AUST) for under 25s (employers) | £827 | £866 | £892 |
| Rates - Class 1 Employer and Employee | 2016/17 | 2017/18 | 2018/19 |
|---|---|---|---|
| Employee rates | |||
| Earnings below LEL | 0% | 0% | 0% |
| Earnings between LEL and PT 1 | 0% | 0% | 0% |
| Earnings between PT and UEL 1 | 12% | 12% | 12% |
| Deferred rate for certain employees with more than one job 2 | 2% | 2% | 2% |
| Earnings above UEL | 2% | 2% | 2% |
| Employer rates | |||
| Earnings below ST, UST or AUST | 0% | 0% | 0% |
| Above ST, UST or AUST 3 | 13.8% | 13.8% | 13.8% |
| Employment allowance | |||
| Employment allowance (EA) - annual allowance, per business - offset against employer's Class 1 NICs 4 | £3,000 | £3,000 | £3,000 |
| Other employer rates | |||
| Class 1A - on employer-provided benefits-in-kind | 13.8% | 13.8% | 13.8% |
| Class 1B - on PAYE settlement agreements | 13.8% | 13.8% | 13.8% |
Notes:
[1] NIC paid on earnings between LEL and UEL accrue entitlement to state pension and other contributory state benefits.
[2] Employees with more than one job with earnings above the UEL in one job or above the UEL plus PT over two jobs, can apply to HMRC to defer paying Class 1 at the full rate. See guidance at gov.uk/defer-national-insurance
[3] Employers pay 0% Class 1 secondary NIC on earnings up to the UEL for employees aged below 21 and apprentices aged under 25.
[4] Connected companies, connected charities and/or employers with more than one PAYE scheme have only one EA between them.
For further data see gov.uk/government/publications/rates-and-allowances-national-insurance-contributions/rates-and-allowances-national-insurance-contributions
| Rates - other | 2016/17 | 2017/18 | 2018/19 |
|---|---|---|---|
| Class 2 (self-employed flat rate) 1 | |||
| Per week | £2.80 | £2.85 | £2.95 |
| Small earnings exception (per year) | £5,965 | £6,025 | £6,205 |
| Share fisherman (per week) | £3.45 | £3.50 | £3.60 |
| Voluntary development workers (per week) | £5.60 | £5.65 | £5.80 |
| Class 3 (voluntary) 1 | |||
| Per week | £14.10 |
£14.25 | £14.65 |
| Class 4 (self-employed) | |||
| Lower profits limit LPL (per year) | £8,060 | £8,164 | £8,424 |
| Upper profits limit UPL (per year) | £43,000 | £45,000 | £46,350 |
| Rate | |||
| Between LPL and UPL | 9% | 9% | 9% |
| Above UPL | 2% | 2% | 2% |
Note:
[1] Accrues entitlement to state pension and other contributory state benefits.
Find more information at: gov.uk/national-insurance and gov.uk/government/publications/rates-and-allowances-national-insurance-contributions/rates-and-allowances-national-insurance-contributions
| Rates | 2016/17 | 2017/18 | 2018/19 |
|---|---|---|---|
| Basic rate of 20% on income up to... | £32,000 | £33,500 | £34,500 |
| Higher rate of 40% on income... | £32,001 to £150,000 | £33,501 to £150,000 | £34,501 to £150,000 |
| Additional rate on income over £150,000 | 45% | 45% | 45% |
| Starting rate of 0% limited for savings up to | £5,000 | £5,000 | £5,000 |
| Dividends: basic rate taxpayers | 7.5% | 7.5% | 7.5% |
| Higher rate taxpayers | 32.5% | 32.5% | 32.5% |
| Additional rate taxpayers | 38.1% | 38.1% | 38.1% |
| Trust rate | 45% | 45% | 45% |
| Trust rate on first £1,000 [1] | 20% | 20% | 20% |
| Trust rate on dividends | 38.1% | 38.1% | 38.1% |
Notes:
[1] Depends on the type of income
Find out more information at: gov.uk/government/publications
| Personal allowances | 2016/17 | 2017/18 | 2018/19 |
|---|---|---|---|
| Personal allowance | £11,000 | £11,500 | £11,850 |
| Income limit for personal allowance [1] | £100,000 | £100,000 | £100,000 |
| Married couple's/civil partnership allowance [1, 2] | |||
| - Maximum amount | £8,355 | £8,445 | £8,695 |
| - Minimum amount | £3,220 | £3,260 | £3,360 |
| Income limit for married couple's/civil partnership allowance (born before 06/04/1938) | £27,700 | £28,000 | £28,900 |
| Marriage allowance [3] | £1,100 | £1,150 | £1,190 |
| Blind person's allowance | £2,290 | £2,320 | £2,390 |
| Trading allowance | N/A | £1,000 | £1,000 |
| Property allowance | N/A | £1,000 | £1,000 |
| Savings and investments | 2016/17 | 2017/18 | 2018/19 |
|---|---|---|---|
| Dividend allowance | £5,000 | £5,000 | £2,000 |
| Personal savings allowance: | |||
| - basic rate taxpayers | £1,000 | £1,000 | £1,000 |
| - higher rate taxpayers | £500 | £500 | £500 |
| - additional rate taxpayers | £nil | £nil | £nil |
Notes:
[1] £1 reduction for every £2 of additional income over the income threshold.
[2] Relief at 10% if at least one of the couple was born before 06/04/35.
[3] The allowance is transferable between spouses or civil partners who were both born after 5 April 1935. It can only be transferred where neither the transferor nor the transferee is liable to income tax above the basic rate.
Find more information at: gov.uk/topic/personal-tax/income-tax
| Tax rates - individuals | 2016/17 | 2017/18 | 2018/19 |
|---|---|---|---|
| Standard rate | 10% | 10% | 10% |
| Higher rate | 20% | 20% | 20% |
| Standard rate for gains on residential property and carried interest | 18% | 18% | 18% |
| Higher rate for gains on residential property and carried interest | 28% | 28% | 28% |
| Trust rate | 20% | 20% | 20% |
| Trust rate for gains on residential property | 28% | 28% | 28% |
| Exemptions | 2016/17 | 2017/18 | 2018/19 |
|---|---|---|---|
| Individuals, PRs and some trustees | £11,100 | £11,300 | £11,700 |
| Most trustees | £5,500 | £5,650 | £5,850 |
| Chattels exemptions: proceeds up to 1 | £6,000 | £6,000 | £6,000 |
Notes:
[1] For consideration over £6,000 the chargeable gain is limited to five-thirds of excess over £6,000
| Rates for investors | 2016/17 | 2017/18 | 2018/19 |
|---|---|---|---|
| Entrepreneurs' Relief | |||
| - Relief rate | 10% | 10% | 10% |
| - Lifetime limit | £10m | £10m | £10m |
| Investors' Relief |
|||
| - Relief rate | 10% | 10% | 10% |
| - Lifetime limit | £10m | £10m | £10m |
Find more information at: gov.uk/topic/personal-tax/capital-gains-tax
| Rates | 2016/17 | 2017/18 | 2018/19 |
|---|---|---|---|
| IHT nil rate | £325,000 | £325,000 | £325,000 |
| Residential nil rate band (RNRB) | N/A | £100,000 | £125,000 |
| Lifetime rate | 20% | 20% | 20% |
| Death rate | 40% | 40% | 40% |
| Lower rate when 10% or more of estate is left to a charity | 36% | 36% | 36% |
| IHT reliefs for lifetime gifts | 2016/17 | 2017/18 | 2018/19 |
|---|---|---|---|
| Annual exemption | £3,000 | £3,000 | £3,000 |
| Small gifts | £250 | £250 | £250 |
| Marriage: | |||
| - Parent | £5,000 | £5,000 | £5,000 |
| - Grandparent | £2,500 | £2,500 | £2,500 |
| - Bride/groom | £2,500 | £2,500 | £2,500 |
| - Other | £1,000 | £1,000 | £1,000 |
| Reduced tax charge on gifts within 7 years of death | |||||
|---|---|---|---|---|---|
| Years before death | 0-3 | 3-4 | 4-5 | 5-6 | 6-7 |
| % of death rate tax | 100 | 80 | 60 | 40 | 20 |
Note: IHT free transfers from a UK domiciled spouse to a non UK domiciled spouse are restricted to an amount equivalent to the nil rate band. From April 2013 a non UK domiciled spouse can elect to be UK domiciled for IHT purposes.
Find more information at: gov.uk/inheritance-tax
Child benefit is receivable by a person responsible for each child until they reach 16, or 20 if they stay in education or training.
If the person (or their spouse or partner) has adjusted net income above £50,000, the person with the highest income has an income tax charge.
If their adjusted net income is more than £60,000 a year, the tax charge equals the child benefit received and the charge is 1% of benefit for each £100 of income between £50,000 and £60,000. High income child benefit charge applies from January 2013.
| 2016/17 | 2017/18 | 2018/19 | |
| Eldest/only child | £20.70 | £20.70 | £20.70 |
| Other children | £13.70 | £13.70 | £13.70 |
Find out more at: gov.uk/child-benefit-tax-charge/overview
For an adult non-UK domiciliary after UK residence in:
| 2016/17 | 2017/18 | 2018/19 | |
|---|---|---|---|
| At least seven of the previous nine tax years | £30,000 | £30,000 | £30,000 |
| At least 12 of the previous 14 tax years | £60,000 | £60,000 | £60,000 |
| At least 17 years of the previous 20 tax years | £90,000 | N/A1 | N/A1 |
Note:
[1] From 6 April 2017 non-UK domiciliary will be deemed resident after 15 out of 20 years in the UK.
Find more information at: gov.uk/government/publications
The enterprise investment scheme (EIS) is designed to help smaller high-risk trading companies to raise finance by offering a range of tax reliefs to investors who purchase new shares in those companies.
| 2016/17 | 2017/18 | 2018/19 | ||
|---|---|---|---|---|
| Income tax relief | 30% | 30% | 50% | |
| Limit of relief | £1m | £1m | £2m [1] | |
| EIS eligible for CGT deferral relief | No limit | No limit | No limit | |
Note:
1. Any amount over £1m must be invested in one or more knowledge-intensive companies
Find more information at: gov.uk/business-tax/investment-schemes
SEIS is designed to help small, early-stage companies to raise equity finance by offering a range of tax reliefs to individual investors who purchase new shares in those companies.
It complements the existing enterprise investment scheme (EIS) which will continue to offer tax relief to investors in higher-risk small companies. SEIS is intended to recognise the particular difficulties which very early stage companies face in attracting investment, by offering tax relief at a higher rate than that offered by the existing EIS.
SEIS apply for shares issued on or after 6 April 2012. The rules have been designed to mirror those of EIS as it is anticipated that companies may want to go on to use EIS after an initial investment under SEIS.
| 2016/17 | 2017/18 | 2018/19 | |
|---|---|---|---|
| Income tax relief | 50% | 50% | 50% |
| Limit of relief | £100,000 | £100,000 | £100,000 |
| SEIS/CGT reinvestment relief | 50% | 50% | 50% |
Find more information at: gov.uk/guidance/seed-enterprise-investment-scheme-background
The VCT scheme is designed to encourage individuals to invest indirectly in a range of small higher-risk trading companies whose shares and securities are not listed on a recognised stock exchange.
VCT shares issued after 5 April 2006 need only be held for five years to retain the initial income tax relief and capital gains tax deferral.
| 2016/17 | 2017/18 | 2018/19 | |
|---|---|---|---|
| Relief | 30% | 30% | 30% |
| Limit of relief | £200,000 | £200,000 | £200,000 |
Find more information at: gov.uk/topic/business-tax/investment-schemes
ISAs are tax favoured savings and investment accounts that can be used to save cash, or invest in stocks and shares.
Income and gains on ISA investments are tax-free but capital losses cannot be used against non-ISA gains.
| ISA limits | 2016/17 | 2017/18 | 2018/19 |
|---|---|---|---|
| Annual investment limit | £15,240 | £20,000 | £20,000 |
| Junior ISA/Child Trust Fund | £4,080 | £4,128 | £4,260 |
Find more information at: gov.uk/apply-tax-free-interest-on-savings
| 2016/17 | 2017/18 | 2018/19 | |
|---|---|---|---|
| Annual allowance 100% of salary up to...1, 2 | £40,000 | £40,000 | £40,000 |
| Permitted gross contribution (irrespective of salary) | £3,600 | £3,600 | £3,600 |
| Lifetime allowance | £1m | £1m | £1,030,000 |
| Annual allowance charge on excess | 20-45% | 20-45% | 20-45% |
| Tapered annual allowance threshold (applies to income including pension contributions over this threshold) 3 | £150,000 | £150,000 | £150,000 |
| Net income threshold 3 | £110,000 | £110,000 | £110,000 |
Note:
[1] Unused relief can be brought forward from the previous three years and used after the current year allowance.
[2] Restricted to £4,000pa for all defined contribution schemes from the tax year after pension funds have been flexibly accessed.
[3] From 2016/17, the annual allowance is reduced by £1 for every £2 that adjusted income exceeds the threshold, up to a maximum reduction of £30,000. Where net income is below the net income threshold, the taper will not normally apply.
Find more information at: gov.uk/tax-on-your-private-pension
Repayment plan 1
| Rate or threshold | 2016/17 | 2017/18 | 2018/19 |
|---|---|---|---|
| Employee earnings threshold at which repayment of student loan begins | £17,495 per year £1,457 per month £336 per week |
£17,775 per year £1,481 per month £341 per week |
£18,330 per year £1,527 per month £352 per week |
| Rate of student loan deductions [1] | 9% | 9% | 9% |
Notes:
[1] Only charged on income in excess of threshold.
Repayment plan 2 (course started on or after 1 September 2012)
| Rate or threshold | 2016/17 | 2017/18 | 2018/19 |
|---|---|---|---|
| Employee earnings threshold at which repayment of student loan begins | £21,000 per year £1,750 per month £404 per week |
£21,000 per year £1,750 per month £404 per week |
£21,000 per year £1,750 per month £404 per week |
| Rate of student loan deductions [1] | 9% | 9% | 9% |
Notes:
[1] Only charged on income in excess of threshold.
Find more information at: gov.uk/new-employee/student-loans
Tips for searching the HMRC website for information and updates
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