| INCOME TAX |
2016/17 |
2017/18 |
Basic rate band - income up to
Starting rate for savings
Basic rate
Dividend ordinary rate
Higher rate - income over
Higher tax rate
Dividend upper rate
Additional rate - income over
Additional rate
Dividend additional rate
Starting Rate Limit (Savings Income) |
£32,000
*0%
20%
**7.5%
£32,000
40%
**32.5%
£150,000
45%
**38.1%
*£5000
|
£33,500
*0%
20%
**7.5%
£33,500
40%
**32.5%
£150,00
45%
**38.1%
*£5,000
|
For Scottish Taxpayer only the limit is. £31,500
*If an Individual's taxable non-savings income exceeds the starting rate limit, then the starting rate limit for savings will not be available for savings income. £1000 of savings income for basic rate taxpayers (£500 higher rate) may be tax free.
**For the first £5000 of dividends are tax free. |
| Personal Allowance (PA) |
£11,000
|
£11,000
|
| Married Couples Allowance (MCA) (relief restricted to 10%) |
|
|
|
Either partner born before 6 April 1935 |
*£8,355 |
*£8,445 |
| Transferrable Tax Allowance |
|
|
| For certain married couples (relief 20%) |
£1,100 |
£1,150 |
| *Allowances are reduced by £1 for every £2 that adjusted net income exceeds £28,700 (£27,700) to a minimum MCA of £3,260 ( £3,220). where adjusted net income exceeds £100,000, PA is reduced in the same way until it is nil regardles if individuals date of birth. |
| Tax Shelters |
Enterprise Investment Scheme (EIS) up to |
£1,000,000 |
£1,000,000 |
Seed Enterprise Investment Scheme up to |
£100,000 |
£100,000 |
Venture Capital Trust (VCT) up to |
£200,000 |
£200,000 |
Social Investment tax relief |
£1000,000 |
£1000,000 |
Taxfree savings accounts for 2017/18 |
| ISA subscruption limit £20,000, junior ISA and CTF subscription limit £4128 |
|
PENSIONS |
Pensions: 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 of £40,000 there may be tax charge on the excess. The annual allowance may be reduced by £1 for every £2 of adjusted income over £150,000 to a minimum of £10,000
|
Maximum age for tax relief |
|
74 |
Minimum age for taking benefits |
|
55 |
Life time allowance charge |
-Lump sum paid |
55% |
|
-Monies retained |
25% |
|
On cumulative benefits exceeding |
|
£1,000,000* |
|
Maximum tax-free lump sum |
|
25%* |
| *Subject to transitional protection for excess ammount |