Tax rates and allowances
With changes in the tax system now an ever-present feature, our up-to-date experience is available to ensure clients'' tax liabilities are planned to be at a minimum.
The main changes announced for 2018/19 are:
- personal allowance increases to £11,850
- car fuel benefit multiplier increases to £23,400
- capital gains tax annual allowance increases to £11,700
- national living wage increases from £7.50 per hour to £7.83
- junior ISA allowance increases to £4,260
- lifetime pension allowance increases from £1 million to £1.03 million
- no stamp duty land tax for first-time buyers up to £300,000. A 5% rate applies for purchases between £300,000 and £500,000
- diesel supplement increases to 4%
- dividend allowance is reduced from £5,000 to £2,000
- higher limits for EIS investment relief for knowledge intensive companies increases from £1 million to £2 million
- no property tax in Scotland (LBTT) on residential properties costing up to £145,000
- no property tax in Wales (LTT) on residential properties costing up to £180,000.
As a consequence of devolution, several rates may differ between the 4 countries that make up the UK and Northern Ireland. Where applicable these rates are shown in each section of these tax rates and allowances.
In order to attract a deduction in computing the profits of a trade or business any expenses must be incurred wholly and exclusively for the purpose of the trade. Capital expenditure is not an allowable expense (capital allowances are claimed on these costs), and certain other expenses are barred by statute.
The tax system has many fines and penalties for those that do not file or pay on time. Make sure you do not become liable to any of these fines or penalties.
There are a number of schemes intended to encourage employers to make arrangements for their staff to travel to work by more environmentally beneficial means.
There are limits that may be contributed to a registered pension scheme without incurring a tax charge. 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.
Enterprise investment schemes, seed enterprise investment schemes, venture capital trusts and social investment relief.
Stamp duty land tax on residential property is charged at different rates depending on the portion of the purchase price that falls within a certain rate band.
ATED is a tax payable by companies on high value residential property (a dwelling).