Budget Comment 2019
No Comment (there wasn’t one!)
Please note the full chart of Rates and Allowances below and remember – there is always more to tax matters than meets the eye so please contact us before taking or refraining from action.
Rates and Allowances for 2019 and 2020
Rates and allowances for Income Tax, Corporation Tax, Capital Gains Tax, and Inheritance Tax are set out below.
|
2018-19 (£) |
2019-20 (£) |
Increase (£) |
Income Tax allowances |
|
|
|
Personal allowance |
11,850 |
12,500 |
650 |
Income limit for under 65 personal allowance |
100,000 |
100,000 |
0 |
Married couple’s allowance for people born before 6 April 1935 |
8,695 |
8,915 |
220 |
Capital Gains Tax annual exempt amount: |
11,700 |
12,000 |
300
|
Inheritance Tax |
325,000 |
325,000 |
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 |
7.5% |
7.5% |
Dividend upper rate – for dividends otherwise taxable at the higher rate |
32.5% |
32.5% |
Dividend additional rate – for dividends otherwise taxable at the additional rate |
38.1% |
38.1% |
Dividend allowance |
£2,000 |
£2,000 |
Personal savings allowance |
£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 |
National Insurance
|
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 |
Previously, SDLT was charged at a single rate for the entire price of a property. From 17 March 2017, SDLT is charged at increasing rates for each portion of the price.
Rate |
All land in the UK |
|
Non-residential |
Zero |
£0-150,000 |
2% |
£150,001 – 250,000 |
5% |
£250,001 |
The rate of stamp duty / stamp duty reserve tax on the transfer of shares and securities is unchanged at 0.5% for 2019-20.
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 |