TAX RATES & TABLES

INCOME TAX RATES

CAPITAL GAINS TAX

ANNUAL TAX ON ENVELOPED DWELLINGS (ATED)

STAMP DUTY LAND TAX (SDLT)

INHERITANCE TAX (IHT)

PAYMENTS

INCOME TAX RATES

PERSONAL (TAX FREE) ALLOWANCE2016 - 172017 - 18
Personal Allowance (if available)£11,000£11,500
Transferable Tax Allowance (Marriage Allowance)£1,100£1,150

INCOME TAX RATES
Amount in excess of personal allowance
2016 - 172017 - 18
Basic Rate Band£32,000£33,500
Basic Rate20%20%
Dividend Ordinary Rate7.5%7.50%
Higher rate for income in excess of the personal allowance plus basic rate band40%40%
Dividend upper rate 32.5%32.5%
Additional Rate where income exceeds £150,00045%45%
Dividend Additional Rate38.1%38.1%
Rent-a Room Relief£7,500£7,500
Property AllowanceN/A£1,000

Where an individual’s non-savings income is less than the starting rate for savings limit, the savings income will be taxable at the 0% starting rate for savings up to the limit. From 6 April 2015 the starting rate for savings limit is the individual’s personal allowances plus the starting rate band of £5,000.

Where an individual’s non-savings income exceeds the starting rate for savings limit, the starting rate for savings is not available.

From 6th April 2016 the dividend tax credit is abolished. The first £5,000 of dividend is tax free. The rate of tax applicable to dividends in excess of this amount is 7.5%/32.5%/ or 38.1% depending on the level of other income.

For those with income over £100,000 the personal allowance is reduced by £1 for every £2 that the taxable income is in excess of £100,000.

The rate of income tax applicable to trusts is 45%.

CAPITAL GAINS TAX

CAPITAL GAINS TAX2016 - 172017 -18
Individuals Annual Exemption£11,100£11,300
Trusts Annual Exemption (generally)£5,550£5,650
Gains from residential property18% / 28%18% / 28%
All other gains10% / 20%10% / 20%

Special rules apply on disposals of leasehold interests of less than 50 years.

Where a property has at any time been the Principal Private Residence of the taxpayer and all or part of the property has been let as residential accommodation then the gain attributable to the letting is reduced by the lower of an amount equal to the part of the total gain that is exempt because of owner occupation £40,000 the gain (ie it may not create a loss).

From 5th April 2016 the higher rates of CGT apply to gains arising on disposals of residential property.

ANNUAL TAX ON ENVELOPED DWELLINGS (ATED)

ANNUAL TAX ON ENVELOPED DWELLINGS (ATED) *2016 - 172017 - 18
£0 - £500kn/an/a
£500k - £1m*£3,500£3,500
£1m - £2m*£7,000£7,050
£2m - £5m*£23,350£23,550
£5m - £10m*£54,450£54,950
£10m - £20m*£109,050£110,100
Over £20m*£218,200£220,350

* Property value as at 1st April 2012

Applies to residential properties held by non-natural persons and is subject to numerous exemptions and reliefs.

There are numerous reliefs including where the property has been let commercially. To claim a relief the owner MUST claim this relief on a full ATED return, which must be submitted annually.

STAMP DUTY LAND TAX (SDLT)

STAMP DUTY LAND TAX (SDLT) (Residential Property)
The purchase of the first or main property by an individual
The first £125,000 of the price paid0%
The next £125,000 of the price paid2%
The next £675,000 of the price paid5%
The next £575,000 of the price paid 10%
The excess over £1,500,00012%
The purchase of a second or additional property by an individual
The first £40,000 of the price paid0%
The next £85,000 of the price paid3%
The next £125,000 of the price paid5%
The next £675,000 of the price paid8%
The next £575,000 of the price paid 13%
The excess over £1,500,00015%
The purchase of a second or additional property subject to ATED
The rate applies to the whole of the consideration where the purchaser is not an individual and the consideration exceeds £500,00015%

This table applies to the price paid for residential properties only and transactions where contracts are exchanged after 4th December 2014.

Residential properties to which ATED applies the rate of SDLT is 15% on the whole value.

INHERITANCE TAX (IHT)

INHERITANCE TAX (IHT)2016 - 172017 - 18
NIL Rate Band£325,000£325,000
Lifetime transfers in excess of £325,00020%20%
Rate of tax on the excess over the nil rate band40%40%

Inheritance tax is charged on an estate at death, on lifetime gifts within seven years of death and on lifetime transfers

Chargeable transfers are aggregated. Lifetime transfers in excess of £325,000 are taxed at 20%. On death the rate on the excess of an estate over £325,000 is 40%. A tapered rate is applied to transfers made between three and seven years before death.

The first £325,000 is called the nil rate band.

Between husband and wife, the surviving spouse may use any part of the nil rate band that was not used on the first death. Transfers between husband and wife who are both UK domicilied or both non-UK domiciled are exempt.

The nil rate band is increased to partly accommodate the transfer of the family home to a descendant, with restrictions on estates worth over £2,000,000. The increase is being introduced gradually and by 2020/21 it will be £175,000 per
person.

Small gifts made out of income are exempt.

IHT applies to certain trusts and is payable at a (very) reduced rate every tenth year and on exit. Contact us for details.

PAYMENTS

PAYMENTS2016 - 172017 - 18
Self assessment Income Tax
1st payment on account31 JAN 201731 JAN 2018
2nd payment on account31 JUL 201731 JUL 2018
Balancing payment31 JAN 201831 JAN 2019
Capital Gain Tax *31 JAN 201831 JAN 2019
Inheritance TaxOn death
Payment has to be made before the end of the sixth month after the person died.

Lifetime transfers
If the transfer was made between 6th April and 30th September payment is made before 30th April following. If the transfer is made between 1st October
and 5th Aprilpayment is made six months after the end of the month in whch the transfer is made.
ATED (exceptions in the first year of liability)30 APR 1630 APR 17

*Special rules apply to the reporting and paying CGT by non-residents.

This note is provided as a general overview. It should not be relied upon for taxation purposes, as it cannot provide a complete analysis of the law in any particular circumstance. Taxation is complex and the client should take advice specific to his/her own circumstances. Landlords Tax Services Ltd cannot accept any responsibility for any loss suffered as a result of reliance on the foregoing overview. We will be pleased to advise on any individual situation.