Scrutton Bland Budget Report 2018

8

Autumn Budget 2018

Income tax and personal savings

The Chancellor announced a bringing forward of the planned increases in the personal allowance and the higher rate threshold for income tax. Income tax rates and bands

2019/20

2018/19

Band £

Rate %

Band £

Rate %

0 - 37,500

20

0 - 34,500

20

37,501 - 150,000

40

34,501 - 150,000

40

Over 150,000

45

Over 150,000

45

Savings income

2019/20

2018/19

£1,000

Savings allowance basic rate

£1,000

£500

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.

Dividend income

2019/20

2018/19

Dividend allowance

£2,000

£2,000

Dividend ordinary rate

7.5%

7.5%

Dividend upper rate

32.5%

32.5%

Dividend additional rate

38.1%

38.1%

Personal allowances

2019/20

2018/19

£12,500

£11,850

Personal allowance

£100,000

£100,000

Personal allowance income limit

Marriage allowance Transferable between certain spouses where neither pay tax above the basic rate Married couple’s allowance (relief given at 10%) Either partner born before 6 April 1935

£1,250

£1,190

£8,950

£8,695

- minimum amount

£3,450 £29,600

£3,360 £28,900

- income limit

£2,450

£2,390

Blind person’s allowance

FOR ELECTRONIC USE ONLY

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