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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
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

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%

Stamp Taxes – Rates from 4 December 2014
Transfers of property (consideration paid)

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