Skip to content

Tax Card 2018/19 (Part 1)

Benefit in kind


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 bandOver £150,000Over £150,000
Basic rate20%20%
Higher rate40%40%
Additional rate45%45%
Dividend ordinary rate7.5%7.5%
Dividend upper rate32.5%32.5%
Dividend additional rate38.1%38.1%

* The starting rate does not apply if taxable income exceeds the starting rate limit.

Income tax in Scotland

 2018/192018/19 rates2017/182017/18 rates
Starter rate band£2,000*19%  
Basic rate band£2,001 – £12,15020%£31,50020%
Intermediate rate band£12,151 – £32,42321%  
Higher rate band£32,424 – £150,00041%£31,501 – £150,00040%
Top/additional rate bandAbove £150,00046%Above £150,00045%

* Assumes individuals are in receipt of the personal allowance.

Allowances that reduce taxable income or are not taxable

Personal allowance*£11,850£11,500

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%.


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

EmissionsPetrol               Diesel
0 – 50g/km13%17%
51 – 75g/km16%20%
76 – 94g/km19%23%
Over 94g/kmadd 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).


Cars and vansFirst 10,000 business miles45p
Business passenger5p

For national insurance purposes: 45p for all business miles for cars and vans.


Main ratesIndividual basic rate10%10%
Individual above basic rate20%20%
Trusts and estates20%20%
Gains on residential property not eligible for PPR relief and carried interest – surcharge8%8%
Annual exemptionIndividuals£11,700£11,300
Entrepreneurs’ reliefApplicable rate10%10%
Lifetime limit£10m£10m
Investors’ reliefApplicable rate10%10%
Lifetime limit£10m£10m


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.