Income tax and personal savings The Chancellor announced a bringing forward of the planned increases in the personal allowance and higher rate threshold for income tax.
Income tax rates and bands 2019/20
2018/19
Band £
Rate %
Band £
Rate %
0 – 37,500
20 40 45
0 – 34,500
20 40 45
37,501 – 150,000
34,501 – 150,000
Over 150,000
Over 150,000
Savings income
2019/20
2018/19
Savings allowance basic rate
£1,000
£1,000
Savings allowance higher rate £500 A starting rate for savings band of £5,000 at 0% may be available unless taxable non-savings income exceeds the starting rate band. £500
Dividend income
2019/20
2018/19
Dividend allowance Dividend ordinary rate Dividend upper rate Dividend additional rate
£2,000
£2,000
7.5%
7.5%
32.5% 38.1%
32.5% 38.1%
Personal allowances
2019/20 £12,500 £100,000
2018/19 £11,850 £100,000
Personal allowance
Personal allowance income limit
Marriage allowance Transferable between certain spouses where neither pay tax above the basic rate
£1,250
£1,190
Married couple’s allowance (relief given at 10%) Either partner born before 6 April 1935
£8,950
£8,695
• Minimum amount
£3,450 £29,600
£3,360 £28,900
• Income limit
Blind person’s allowance
£2,450
£2,390
Stamp Duty Land Tax (SDLT) and first-time buyers relief As from 22 November 2017, first-time buyers in England and Northern Ireland paying £300,000 or less for a residential property pay no SDLT. First-time buyers paying between £300,000 and £500,000 pay SDLT at 5% on the amount of the purchase in excess of £300,000. In his Autumn Budget the Chancellor announced an extension to first-time buyers relief in England and Northern Ireland so that all qualifying shared ownership property purchasers can benefit, whether or not the purchaser elects to pay SDLT on the market value of the property. This change will apply to relevant transactions with an effective date on or after 29 October 2018, and will also be back dated to 22 November 2017 so that those eligible who have not previously claimed first-time buyers relief will be able to amend their return and claim a refund.
If you need help with any aspect of your tax planning, call our team today or email hello@ scruttonbland.co.uk
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