2018-19 (£)

2019-20 (£)

Increase (£)

Income Tax allowances

Personal allowance
Personal allowance (age 65-74)
Personal allowance  (age 75 and over)

11,850
N/A
N/A

12,500
N/A
N/A

650
0
0

Income limit for under 65 personal allowance
Income limit for age-related allowances

100,000
N/A

100,000
N/A

0
0

Married couple’s allowance for people born before 6 April 1935
Minimum amount of married couple’s allowance
Blind person’s allowance

8,695
3,360
2,390

8,915
3,450
2,450

220
90
60

Capital Gains Tax annual exempt amount:
Individuals etc.
Trustees
Main Rate
Lower Rate
Main Rate (for gains on residential property)
Lower Rate (for gains on residential property)

11,700
5,850
20%
10%
28%
18%

12,000
6,000
20%
10%
28%
18%

300
150

Inheritance Tax
Nil rate band limit
Residence nil rate band limit
Main Rate

325,000
100,000
40%

325,000
100,000
40%

0

Taxable bands 2018-19 (£)

Taxable bands 2019-20 (£)

Starting rate 10%

–

Starting rate 10%

–

Basic rate 20%

0 – 34,500

Basic rate 20%

0 – 37,500

Higher rate 40%

34,501 – 150,000

Higher rate 40%

37,501 – 150,000

Additional rate 45%

Over 150,000

Additional rate 45%

Over £150,000

Income tax rates

Tax year 2018-19

Tax year 2019-20

Basic rate

20%

20%

Higher rate

40%

40%

Additional rate

45%

45%

Dividend ordinary rate – for dividends otherwise taxable at the basic rate
(effective rate with tax credit)

7.5% 

7.5%

Dividend upper rate – for dividends otherwise taxable at the higher rate
(effective rate with tax credit)

32.5%

32.5%

Dividend additional rate – for dividends otherwise taxable at the additional rate
(effective rate with tax credit)

38.1% 

38.1%

Dividend allowance
From April 2016, the new Dividend Allowance means that individuals will not have to pay tax on the first £5,000 of dividend income they receive.

£2,000

£2,000

Personal savings allowance
From April 2016, the new Personal Savings Allowance means that basic rate taxpayers will not have to pay tax on the first £1,000 of savings income they receive.
Higher rate taxpayers will not have tax to pay on their first £500 of savings income.

£1,000

£500

£1,000
 

£500

Starting rate for savings

Tax year 2018-19

Tax year 2019-20

Starting rate for savings

0%

0%

Starting rate limit for savings

£5,000

£5,000

Corporation Tax profits 2018-19 (£)

All profits – main rate 19%

N/A

Marginal relief

N/A

2018/2019

2019/2020

 Class 1 Employees

On first

£162 pw

Nil

£166 pw

Nil

Between

£162 – £892 pw

12%

£166 – £962 pw

12%

Over

£892 pw

2%

£962 pw

2%

 Class 1 Employers

On first

£162 pw

Nil

£166 pw

Nil

Over

£162 pw

13.8%

£166 pw

13.8%

Employers’ contracted-out rebate, salary related schemes

N/A

N/A

Employers’ contracted-out rebate, money purchase schemes

Abolished

Abolished

Class 2 Self employed

Flat rate

£2.95 pw

£3.00 pw

Small earnings exception

£6,205 pa

£6,365 pa

Special Class 2 rate for share fisherman

£3.60 pw

£3.65 pw

Special Class 2 rate for volunteer development workers

£5.80 pw

£5.90 pw

Class 3 Voluntary

 Flat rate

£14.65 pw

£15.00 pw

 Class 4 Self employed

On profits between

£8,424 – £46,350 pa

9%

£8,632 – £50,000 pa

9%

above £46,350

2%

above £50,000

2%

Rate

All land in the UK

Rate

All land in the UK

Residential

Additional residential property

Zero

£0-125,000

3%

£0-125,000

2%

On next £125,00

5%

On next £125,00

5%

On next £675,000

8%

On next £675,000

10%

On next £575,000

13%

On next £575,000

12%

On the rest (above) £1,500,000

15%

On the rest (above) £1,500,000

Rate

All land in the UK

Non-residential

Zero

£0-150,000

2%

£150,001  – 250,000

5%

£250,001

Value Added Tax (VAT)

April 2018-19

April 2019-20

Standard rate

20%

20%

Reduced rate

5%

5%

Zero rate

0%

0%

Exempt

n/a

n/a

Value Added Tax (VAT) – Registration and Deregistration thresholds

From April 2018

From April 2019

VAT – registration threshold

85,000

85,000

VAT – deregistration threshold

83,000

83,000