9
Autumn Budget 2018
Scottish income tax rates and bands
Savings and dividend income are taxed using UK rates and bands.
2019/20
2018/19
Band £
Rate %
0 - 2,000
19
2,001 - 12,150
20
Rates and bands for 2019/20 will be announced in the Scottish Budget
12,151 - 31,580
21
31,581 - 150,000
41
Over 150,000
46
Welsh income tax rates From 6 April 2019, the UK government will reduce the basic, higher and additional rates of income tax paid by Welsh taxpayers by 10%, and three Welsh rates of income tax will then be added to the reduced UK rates. The Welsh government proposes to set the first Welsh rates at 10%. Individual Savings Accounts (ISAs) Individuals can invest in any combination of cash or stocks and shares up to the overall annual ISA subscription limit. However, a saver may only pay into a maximum of one Cash ISA, one Stocks and Shares ISA, one Innovative Finance ISA and one Lifetime ISA. The overall investment limit for 2019/20 is £20,000 (£4,368 for junior accounts).
Capital taxes Inheritance tax (IHT)
IHT is currently charged at 40% on the proportion of an individual’s estate exceeding the ‘nil-rate band’ of £325,000. Married couples and registered civil partners can pass any unused nil-rate band to one another on death.
A residence nil-rate band (RNRB) now applies in addition to the nil-rate band, allowing a current or former ‘family home’ to be passed wholly or partially tax-free on death to direct descendants.
The RNRB rates are set as follows:
£125,000
2018/19
£150,000
2019/20
£175,000
2020/21
There is a tapered withdrawal of the RNRB for estates valued at more than £2m, at a withdrawal rate of £1 for every £2 over this threshold.
FOR ELECTRONIC USE ONLY
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