Income Tax
Income tax rates (other than dividend income) 2018-19
2017-18
Band £
Rate % Band £
Rate %
0 - 34,500
20 40 45
0 - 33,500
20 40
34,501 - 150,000
33,501 - 150,000
Over 150,000 45 Scottish taxpayers are subject to different tax rates and bands on non-savings and Over 150,000
non-dividend income. Savings income
2018-19 and 2017-18
Starting rate for savings
0%
Pension Contributions There is no financial limit on the amount that may be contributed to a registered pension scheme. The maximum amount on which an individual can claim tax relief in any tax year is the greater of the individual’s UK relevant earnings or £3,600 (gross). If total pension input exceeds the annual allowance (£40,000) there may be a tax charge on the excess. The annual allowance may be reduced where adjusted income exceeds £150,000. A £4,000 limit may apply where money purchase pensions are accessed. Maximum age for tax relief 74 Minimum age for taking benefits 55 Lifetime allowance charge – lump sum paid 55% – monies retained 25% on cumulative benefits exceeding £1,030,000* *Subject to transitional protection for excess amount. (Reduce personal allowance by £1 for every £2 of adjusted net income over £100,000.) 10% of the PA may be transferable between certain spouses where neither pay tax above the basic rate, known as the Marriage allowance. Marriage allowance £1,185 £1,150 Married couple’s allowance (MCA) (relief 10%) £8,695 £8,445 (Either partner born before 6 April 1935.) - min. amount £3,360 £3,260 Reduce MCA by £1 for every £2 of adjusted net income over £28,900 (£28,000). Tax-Free Savings Accounts for 2018-19 ISA subscription limit £20,000; Junior ISA and CTF subscription limit £4,260. Starting rate limit for savings £5,000 Not available if the taxable non-savings income exceeds the starting rate band. £1,000 of savings income for basic rate taxpayers (£500 for higher rate) may be tax free. Dividend income 2018-19 and 2017-18 Dividend ordinary rate 7.5% Dividend upper rate 32.5% Dividend additional rate 38.1% The first £2,000 of dividends are tax free. 2018-19 2017-18 Personal allowance (PA) £11,850 £11,500
Made with FlippingBook - Online magazine maker