Email: info@taxreturn.co.uk



Please find below details of the new tax rates and allowances

which are applicable for the year commencing April, 2017.


Please do not hesitate to contact us if you would like further information

or you wish to discuss any of the tax rates or allowances in more detail.


                                 

Capital Allowances - Tax Rates 2017/18

Income Tax

Income tax rates 2017/18 2016/17
  Starting rate limit (savings income) *£5,000 *£5,000
  Starting rate *0% *0%
Basic rate band - income up to **£33,500 £32,000
  Basic rate 20% 20%
  Dividend ordinary rate ***7.5% ***7.5%
Higher rate - income over **£33,500 £32,000
  Higher rate 40% 40%
  Dividend upper rate ***32.5% ***32.5%
Additional rate - income over £150,000 £150,000
  Additional rate 45% 45%
  Dividend additional rate ***38.1% ***38.1%

* If an individual's taxable non-savings income exceeds the starting rate limit, then the starting rate will not be available for savings income. £1,000 of savings income for basic rate taxpayers (£500 for higher rate) may be tax-free.

** For Scottish taxpayers only the limit is £31,500.

*** The first £5,000 of dividends are tax-free

Personal allowance (PA)    
Personal Allowance 1 £11,500 £11,000
Blind person's allowance   £2,320 £2,290
Married couple's allowance (MCA)    
Either partner born before 6 April 1935 (relief restricted to 10%) 2 £8,445 £8,355
Transferable tax allowance ('Marriage Allowance')    
For certain married couples and civil partners born after 5 April 1935 (relief 20%) 3 £1,150 £1,100
Tax Shelters    
Venture Capital Trust (VCT) up to £200,000 £200,000
Enterprise Investment Scheme (EIS) up to £1,000,000 £1,000,000
Seed Enterprise Investment Scheme up to £100,000 £100,000
Social Investment Tax Relief £1,000,000 £1,000,000

Notes

  1. Where adjusted net income exceeds £100,000, PA is reduced in the same way until it is nil regardless of the individual's date of birth.
  2. Allowances are reduced by £1 for every £2 that adjusted net income exceeds £28,000 (£27,700 2016/17) to a minimum MCA of £3,260 (£3,220 2016/17).
  3. Available to spouses/civil partners born after 5 April 1935, the allowance is 10% of the standard personal allowance. It allows a spouse or civil partner who is not liable to income tax above the basic rate to transfer this amount of their personal allowance to their spouse/civil partner. The recipient must not be liable to tax above the basic rate. Relief is given as a tax reduction at 20% of the transferred amount.

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