INCOME TAX RATES
|PERSONAL (TAX FREE) ALLOWANCE||2016 - 17||2017 - 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 - 17||2017 - 18|
|Basic Rate Band||£32,000||£33,500|
|Dividend Ordinary Rate||7.5%||7.50%|
|Higher rate for income in excess of the personal allowance plus basic rate band||40%||40%|
|Dividend upper rate||32.5%||32.5%|
|Additional Rate where income exceeds £150,000||45%||45%|
|Dividend Additional Rate||38.1%||38.1%|
|Rent-a Room Relief||£7,500||£7,500|
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 £100,000.
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 TAX||2016 - 17||2017 -18|
|Individuals Annual Exemption||£11,100||£11,300|
|Trusts Annual Exemption (generally)||£5,550||£5,650|
|Gains from residential property||18% / 28%||18% / 28%|
|All other gains||10% / 20%||10% / 20%|
Gains that when added to an individuals other income are within the basic rate band will be taxed at the lower rate(s) and all other gains will be taxed at the higher rates.
Special rules apply on disposals of leasehold interests of less than 50 years
The gain arising during a period when the property was the taxpayers principal private residence is exempt and the last eighteen months of ownership are deemed to be an additional period of principal private residence.
If a principal private residence has at some time been a let property then the gain arising in the period when the property was let may be reduced by the lettings allowance capped at £40,000.
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 - 17||2017 - 18|
|£0 - £500k||n/a||n/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|
* 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 paid||0%|
|The next £125,000 of the price paid||2%|
|The next £675,000 of the price paid||5%|
|The next £575,000 of the price paid||10%|
|The excess over £1,500,000||12%|
|The purchase of a second or additional property by an individual|
|The first £40,000 of the price paid||0%|
|The next £85,000 of the price paid||3%|
|The next £125,000 of the price paid||5%|
|The next £675,000 of the price paid||8%|
|The next £575,000 of the price paid||13%|
|The excess over £1,500,000||15%|
|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 £500,000||15%|
Special rules apply to purchases of six or more residential properties in a single transaction.
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 - 17||2017 - 18|
|NIL Rate Band||£325,000||£325,000|
|Lifetime transfers in excess of £325,000||20%||20%|
|Rate of tax on the excess over the nil rate band||40%||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
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||2016 - 17||2017 - 18|
|Self assessment Income Tax|
|1st payment on account||31 JAN 2017||31 JAN 2018|
|2nd payment on account||31 JUL 2017||31 JUL 2018|
|Balancing payment||31 JAN 2018||31 JAN 2019|
|Capital Gain Tax *||31 JAN 2018||31 JAN 2019|
|Inheritance Tax||On death
Payment has to be made before the end of the sixth month after the person died.
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 16||30 APR 17|
*Special rules apply to the reporting and paying CGT by non-residents.