TAXABLE INCOME BANDS AND TAX RATES
|Starting rate* of 0% on savings up to||£5,000||£5,000|
|Basic rate band||£34,500||£33,500|
|Higher rate band||£34,501 – £150,000||£33,501 – £150,000|
|Additional rate band||Over £150,000||Over £150,000|
|Dividend ordinary rate||7.5%||7.5%|
|Dividend upper rate||32.5%||32.5%|
|Dividend additional rate||38.1%||38.1%|
* The starting rate does not apply if taxable income exceeds the starting rate limit.
Income tax in Scotland
|2018/19||2018/19 rates||2017/18||2017/18 rates|
|Starter rate band||£2,000*||19%|
|Basic rate band||£2,001 – £12,150||20%||£31,500||20%|
|Intermediate rate band||£12,151 – £32,423||21%|
|Higher rate band||£32,424 – £150,000||41%||£31,501 – £150,000||40%|
|Top/additional rate band||Above £150,000||46%||Above £150,000||45%|
* Assumes individuals are in receipt of the personal allowance.
Allowances that reduce taxable income or are not taxable
|Personal savings allowance:
Basic rate taxpayer
Higher rate taxpayer
Additional rate taxpayer
|Dividend allowance at 0%||£2,000||£5,000|
|Marriage/civil partner transferable allowance**||£1,185||£1,150|
|Trading allowance and property allowance each***||£1,000||£1,000|
|Rent a room allowance||£7,500||£7,500|
|Blind person’s allowance||£2,390||£2,320|
* The personal allowance is reduced by £1 for each £2 of income from £100,000 to £123,700 (2017/18, £123,000).
** Any unused personal allowance maybe transferred to a spouse or civil partner who is not liable to higher or additional rate tax.
*** Note that landlords and traders with gross income from each of these sources in excess of £1,000 can deduct the allowance from their gross income as an alternative to claiming expenses.
Allowances that reduce tax
There is a tax charge of 1% of the child benefit received for each £100 that the threshold is exceeded up to a maximum of 100%.
VEHICLE AND FUEL BENEFITS IN KIND
The taxable benefit in kind (BIK) is calculated as a percentage of the car’s UK list price. The percentage depends on the car’s CO2 emissions in grams per kilometre (g/km). Diesel cars which are certified to RDE2 standard are treated as petrol-fuelled
|0 – 50g/km||13%||17%|
|51 – 75g/km||16%||20%|
|76 – 94g/km||19%||23%|
|Over 94g/km||add 1% for every 5g/km or part thereof|
|180g/km* and over||37% maximum|
* Over 159g/km for diesel.
The list price is on the day before first registration, including most accessories and is reduced by any employee’s capital contribution (max £5,000) when the car is first made available.
Where the cost of all fuel for private use is borne by the employee, the fuel benefit is nil. Otherwise, the fuel benefit is calculated by applying the car benefit percentage (above) to £23,400 (2017/18, £22,600).
Vans where private use is more than home to work travel; £3,350 (2017/18, £3,230) benefit and £633 (2017/18, £610) for private fuel. Payments by employees for private use may reduce these BIK. Vans with zero emissions have a benefit of £1,340 (2017/18, £646).
TAX-FREE MILEAGE ALLOWANCES
|Cars and vans||First 10,000 business miles||45p|
For national insurance purposes: 45p for all business miles for cars and vans.
CAPITAL GAINS TAX
|Main rates||Individual basic rate||10%||10%|
|Individual above basic rate||20%||20%|
|Trusts and estates||20%||20%|
|Gains on residential property not eligible for PPR relief and carried interest – surcharge||8%||8%|
|Entrepreneurs’ relief||Applicable rate||10%||10%|
|Investors’ relief||Applicable rate||10%||10%|
|Nil-rate band threshold*||£325,000||£325,000|
|Main residence nil-rate band**||£125,000||£100,000|
|Combined threshold limit for married couples and civil partners, including main residence nil-rate band||£900,000||£850,000|
* Up to 100% of any unused part of a deceased person’s nil-rate band can be claimed by the surviving spouse/civil partner on their death. This also applies to the main residence nil-rate band, albeit the main residence nil-rate is subject to the taper withdrawal below.
** For estates worth in excess of £2m, a 50% taper withdrawal applies.