2018 rates and allowances
Written by Ray Coman
State Pension
2017-18 |
2016-17
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|||
Weekly |
Annual | Weekly | Annual | |
Single Tier Pension | £159.55 | £8,296.60 |
£155.65 |
£8,093.80 |
Basic State Pension | £122.30 | £6,359.60 | £119.30 | £6,203.60 |
Basic State Pension for Married Couple | £195.60 | £10,171.20 | £190.80 | £9,921.60 |
Capital Gains Tax
2017-18 | 2016-17 | |
Standard rate (Basic Rate Taxpayers) | 10%/18% | 10%/18% |
Higher rate | 20%/28% | 20%/28% |
Entrepreneurs' relief - effective rate | 10% | 10% |
Entrepreneurs' relief | £10 million | £10 million |
Annual exemption
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||
Individual |
£11,300 | £11,100 |
Settlement(s) (spread over total number) | £5,650 | £5,550 |
Chattels exemption
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(proceeds per item or set) | £6,000 | £6,000 |
Marginal relief | 5/3 Excess over £6,000 | 5/3 Excess over £6,000 |
Individual Savings Account
Individual savings accounts (ISAs) | 2017-18 | 2016-17 |
Overall investment limit | £20,000 | £15,240 |
Junior ISA | £4,128 | £4,080 |
Research and Development Tax Relief
2017-18 | 2016-17 | Note | |
SME Enhanced Deduction Scheme | 130% | 130% | A |
SME cash credit for R&D loss surrendered | 14.5% | 14.5% | |
Large company above the line scheme credit | 11% | 11% | B |
A: Additional (enhanced) tax deduction available for qualifying R&D expenditure
B: Taxable credit available on qualifying R&D expenditure
National Insurance Contributions on Employment
Thresholds for Class 1 National Insurance Contributions (NICs)
2017-18 | 2016-17 | |
Weekly Lower Earnings Limit (LEL) | £113 | £112 |
Weekly Primary Threshold (PT) | £157 | £155 |
Weekly Secondary Threshold (ST) | £157 | £156 |
Upper Earnings Limit (UEE) | £866 | £827 |
Upper Secondary Threshold for under 21s | £866 | £827 |
Employment Allowance (per employer) | £3,000 per year | £3,000 per year |
Class 1 NIC rate on earnings
2017-18 | 2016-17 | |||||
Employee | Employer | Employee | Employer | |||
Between primary threshold and upper earnings limit | 12% | 13.8% | 12% | 13.8% | ||
Above upper earnings limit | 2% | 13.8% | 2% | 13.8% |
Class 1(A) NICs
2017-18 | 2016-17 | |
Rate | 13.8% | 13.8% |
National insurance on Self-employment
Class 2 NICs
2017-18 | 2016-17 | ||||
Weekly | Yearly | Weekly | Yearly | ||
Flat rate | £2.85 | £148.20 | £2.80 | £145.60 | |
Small earnings exception limit | £5,965 | £5,965 |
Class 2 national insurance is payable by sole traders and partners in a partnership. If profits are below the small profits limit then it is possible to be excepted from liability to Class 2 NICs. The accrual of social security will be affected if no class 2 liability is paid for a particular year.
Class 4 NICs
2017-18 | 2016-17 | ||||
Profit band | Rate | Profit band | Rate | ||
Between lower profits and upper profits limit | £8,164 to £45,000 | 9% | £8,060 to £43,000 | 9% | |
Above upper profits limit | 2% | 2% |
Self-employed individuals are liable to class 4 national insurance contributions in addition to class 2 NICs and income tax. Class 4 national insurance contributions will not count towards state benefits, until Class 2 NICs are abolished.
Class 3 NICs
2017-18 | 2016-17 | ||||
Weekly | Yearly | Weekly | Yearly | ||
Flat rate | £14.25 | £741.00 | £14.10 | £733.20 |
A person can top up national insurance by making voluntary contributions. This would be suitable for a non-resident who does not have sufficient qualifying years towards a state pension.
Income Tax
Rate |
2017-18 |
2016-17 |
Basic rate: 20% |
£0 to £33,500 |
£0 to £32,000 |
Higher rate: 40% |
£33,500-£150,000 |
£32,001-£150,000 |
Additional rate: 45% |
Over £150,000 |
Over £150,000 |
Rates of income tax on dividends
Rate |
2017-18 |
2016-17 |
Dividend Allowance | £5,000 | £5,000 |
Basic rate | 7.5% | 7.5% |
Upper rate |
32.5% |
32.5% |
Additional Rate | 38.1% | 38.1% |
Rates of income tax on savings
Rate |
2017-18 |
2016-17 |
Starting rate | 0% | 0% |
Basic rate | 20% | 20% |
Higher rate |
40% |
40% |
Additional rate | 45% | 45% |
Starting rate limit (savings income) | £5,000 | £5,000 |
Personal allowances
Allowance |
2017-18 |
2016-17 |
Basic |
£11,500 |
£11,000 |
People born between 6 April 1938 - 5 April 1948 |
£11,500 |
£11,000 |
People born before 6 April 1938 |
£11,500 |
£11,000 |
Married Couple's Allowance (if born before 6th April 1935) |
£8,445 |
£8,355 |
Blind Person's Allowance |
£2,320 |
£2,290 |
Marriage allowance | £1,150 |
£1,100 |
The Age Related Income Limit for 2017-18 was £28,000
Pension Rates
|
2017-18 | 2016-17 |
Lifetime Allowance |
£1,000,000 | £1,000,000 |
Annual Allowance |
£40,000 | £40,000 |
Car Benefit Charge
2017-18 | ||
Co2 Emissions g/km | Petrol Engine % | Diesel Engines % |
0-50 | 9 | 12 |
51-75 | 13 | 16 |
76-94 | 17 | 20 |
95-99 | 18 | 21 |
100-104 | 19 | 22 |
105-109 | 20 | 23 |
110-114 | 21 | 24 |
115-119 | 22 | 25 |
120-124 | 23 | 26 |
125-129 | 24 | 27 |
130-134 | 25 | 28 |
135-139 | 26 | 29 |
140-144 | 27 | 30 |
145-149 | 28 | 31 |
150-154 | 29 | 32 |
155-159 | 30 | 33 |
160-164 | 31 | 34 |
165-169 |
32 |
35 |
170-174 | 33 | 36 |
175-179 | 34 | 37 |
180-184 | 35 | |
185-189 | 36 | |
190 and above | 37 |
Fuel benefit and van benefit charge
2017-18 | 2016-17 | |
Car fuel benefit charge multiplier | £22,600 | £22,200 |
Van fuel benefit charge | £610 | £598 |
Van benefit charge | £3,230 | £3,170 |
Capital Allowances
Rate of the annual investment allowance
|
2017-18 | 2016-17 |
Annual investment allowance | 100% | 100% |
Main rate on general pool | 18% | 18% |
Special rate pool | 8% | 8% |
Annual investment allowance limit
|
From 1st January 2016 | 1st April 2014 - 31st December 2015 |
Annual investment allowance | £200,000 | £500,000 |
Capital allowances for cars
|
2017-18 | 2016-17 |
CO2 emissions below 75 g/km | 100% | 100% |
CO2 emissions between 75 g/km and 130 g/km | 18% | 18% |
CO2 emissions over 130 g/km | 8% | 8% |
The main pool rate applies to a car with CO2 emissions below 130 g/km, and the special rate applies to car with a higher CO2 emissions. Up to 31 March 2018, cars with low emissions, such as those which are electrically propelled, qualify for 100% capital allowance.