Tax Thresholds For 6 April 2017 To 5 April 2018
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As we approach one of the busiest times of year in the financial calendar for both individuals and businesses alike, it’s important to ensure we are all making the best use of our available annual allowances when it comes to efficient tax planning.
Below are tables highlighting all the key allowances for the current tax year.
INCOME TAX BANDS AND PERCENTAGES
| Band | Limits | Percentage |
| Starting Rate (Savings only *) | £0 – £5,000 | 0%* |
| Basic Rate | £0 – £33,500 (£31,500 Scotland) | 20% |
| Higher Rate | £33,501 – £150,000 (£31,501 – £150,000 Scotland) | 40% |
| Additional/Top Rate | Over £150,000 | 45% |
*0% starting rate is for savings income only – if your non-savings income is above the starting band level, the 0% rate will NOT apply and the basic rate percentage will be used instead.
DIVIDEND TAX BANDS AND PERCENTAGES
| Band | Limits | Percentage |
| Basic Rate | £0 – £33,500 | 7.5% |
| Higher Rate | £33,501 – £150,000 | 32.5% |
| Additional/Top Rate | Over £150,000 | 38.1% |
TAX FREE PERSONAL ALLOWANCE
The amount of gross income you can earn before you are liable to paying income tax.
| Type | Limit |
| Personal* | £11,500 |
| Married Couple’s (aged 82 or over on6 April 2017) ** | £8,445 |
| Dividend | £5,000 |
| Personal Savings (Basic Rate Taxpayers) | £1,000 |
| Personal Savings (Higher Rate Taxpayers) | £500 |
| Property*** | £1,000 |
| Trading*** | £1,000 |
* Reduced by £1 for each £2 of income (less deductions) in excess of £100,000
** Reduced by £1 for each £2 of income (less deductions) in excess of £28,000. The minimum age-related married couple’s allowance us £3,260
*** New allowances for UK resident taxpayers. Where individuals are in receipt of gross property income or gross trading income below the new allowances, the income will not be subject to income tax. Where gross receipts are above, recipients can choose to take the £1,000 allowance as a deduction against their gross income instead of deducting actual expenses to arrive at their taxable income figure.
INCOME LIMITS FOR TAPERING
The amount of gross income you can have before your personal allowance is reduced.
| Income Limit (Born after 5 April 1948) | £100,000 |
| Income Limit (Born before 6 April 1948) * | £28,000 |
INCOME TAX RELIEFS AND INCENTIVES
| Type | Max Investment | Percentage of Relief |
| Enterprise Investment Scheme (EIS) | £1,000,000 | 30% |
| Seed Enterprise Investment Scheme (SEIS) | £100,000 | 50% |
| Venture Capital Trust (VCT) | £200,000 | 30% |
| Individual Savings Account (ISA) | £20,000 | N/A |
| Junior ISA | £4,128 | N/A |
CAPITAL GAINS TAX EXEMPTIONS
| Type | Amount |
| Individuals, Personal Reps and Trustees for Disable People | £11,300 |
| Other Trustees | £5,650 |
CORPORATION TAX
| Main Rate | 19% |
If you would like some advice about using your full annual allowances, please contact your Finura adviser.
The Financial Conduct Authority does not regulate taxation and trust advice.
Sources: https://www.uktaxcalculators.co.uk/tax-rates/2017-2018/
http://ukbudget.com/files/deloitte-uk-tax-rates-2017-18.pdf
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