2017/2018 Tax Rates and Allowances

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2017/2018 Tax Rates and Allowances

2017/2018 Tax Rates and Allowances

Income Tax - Use our Tax Calculator to Calculate Income Tax

Tax Free Personal Allowance

the amount of gross income you can earn before you are liable to paying income tax
Personal Allowance£11,500
Dividend Allowance£5,000
Personal Savings Allowance (Basic Rate Taxpayers)£1,000
Personal Savings Allowance (Higher Rate Taxpayers)£500

Income Limits For Tapering

the amount of gross income you can have before your personal allowance is reduced personal allowance is reduced by £1 for every £2 over the limit * personal allowance will only be reduced to the basic personal allowance unless income is over £100,000
Income Limit (Born after 5 April 1948)£100,000
Income Limit (Born before 6 April 1948) *£28,000

Married Couples Allowance

available to a qualifying individual born before 6th April 1935 aged 75 or over 10% of the amount below is allowed to be deducted from the tax bill of a qualifying individual personal allowance is reduced by £1 for every £2 over the income limits for tapering - up to the minimum married couple's allowance level
Married Couples Allowance£8,455
Minimum Married Couples Allowance£3,260

Marriage Allowance (Transferable Tax Allowance)

available to a qualifying spouses/civil partners born after 5th April 1935 equivalent to 10% of the personal allowance spouses or civil partners not liable to taxes in the higher rate or above can transfer up to the amount available to their spouse or civil partner. the recipient receives a tax bill deduction of 20 percent of the amount transferred
Marriage Allowance£1,150

Blind Person's Allowance

Additional Personal Allowance£2,320

Income Tax Bands and Percentages

*0% starting rate is for savings income only - if your non-savings income is above the starting band level, the 0% rate will NOT apply and the basic rate percentage will be used instead.
BandLimitsPercentage
Starting Rate (Savings only *)£0 - £5,0000%*
Basic Rate£0 - £33,500 (£31,500 SCT)20%
Higher Rate£33,501 - £150,000 (£31,501 - £150,000 SCT)40%
Additional/Top RateOver £150,00045%

Dividend Tax Bands and Percentages - Use our Dividend Tax Calculator to Calculate Tax On Dividends

BandLimitsPercentage
Ordinary Rate£0 - £33,5007.5%
Upper Rate£33,501 - £150,00032.5%
Additional/Top RateOver £150,00038.1%

National Insurance Contributions - Select your NIC Letter and calculate your NIC Liability

National Insurance Rates and Allowances

Find your classification by looking up your NIC letter on your payslip/return

Shared Banding For All NICs

Lower Earnings Limit (Weekly)£113
Upper Accrual Point (Weekly)£770
Upper Earnings Limit (Weekly)£866
Primary Threshold (Weekly)£157
Secondary Threshold (Weekly)£157

Rates for Class 1 NICs

Between Primary Threshold and Upper Earnings Limit12%
Above Upper Earnings Limit2%
Employers' Rate Above Secondary Threshold13.8%
Class 1A Rate On Employer Provided Benefits13.8%
Employees' Contracted Out Rebate1.4%
Employers' Contracted Out Rebate3.4%
Married Women's Reduced Rate Between Primary and Upper Earnings5.85%
Married Women's Reduced Rate Above Upper Earnings2%

Self Employed Class 2 and Class 4 NICs

Class 4 Lower Profits Limit (Annual)£8,164
Class 4 Upper Profits Limit (Annual)£45,000
Class 4 Rate Between Lower and Upper Profits9%
Class 4 Rate Above Upper Profits2%
Class 2 Earnings Exception Limit£6,025
Class 2 Weekly Amount£2.85
Class 2 Weekly Amount (Share Fisherman)£3.50
Class 2 Weekly Amount (Volunteer Development Workers)£5.65

Voluntary Class 3 NICs

Weekly rate£14.25

Corporation Tax - Calculate Corporation Tax

Corporation Tax Rates and Limits

Since 2015/2016 the corporation tax rate has been unified for all company sizes, eliminating the marginal relief.
Small Profits Raten/a
Main Rate19%
Small Profits Limit£n/a
Marginal Relief Lower Limit£n/a
Marginal Relief Upper Limit£n/a
Marginal Relief Fractionn/a

Capital Gains Tax - Calculate Capital Gains Tax

Capital Gains Tax Rates and Annual Exempt Amounts

Annual Exempt Amount

Individuals, Personal Reps and Trustees for Disable People£11,300
Other Trustees£5,650

CGT Tax Rates

Individuals - Basic Rate Taxpayer (Residential Property)18%
Individuals - Higher Rate Taxpayer (Residential Property)28%
Individuals - Basic Rate Taxpayer (Other Gains)10%
Individuals - Higher Rate Taxpayer (Other Gains)20%
Personal Representative of a Deceased Individual (Residential Property)28%
Personal Representative of a Deceased Individual (Other Gains)20%
Gains Qualifying for Entrepreneurs' Relief10%