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Rates and Allowances 2017/18
INCOME TAX RATES
2017/18 2016/17
†For Scottish taxpayers only the limit is £31,500.
*Only applicable to savings income. The rate is not available if taxable non-savings income exceeds £5,000. £1,000 of savings income for basic rate taxpayers (£500 for higher rate) may be tax free. **Except dividends 7.5%. Except dividends 32.5%. lExcept dividends 38.1%.
Other income taxed first, then savings income and finally dividends. The first £5,000 of dividends are tax free.
INCOME TAX RELIEFS
2017/18 2016/17
Personal allowance £11,500** £11,000**
(Reduce personal allowance by £1 for every £2 of adjusted net income over £100,000.) **£1,150 (£1,100) may be transferable between certain spouses where neither pay tax above the basic rate.
CAR, VAN AND FUEL BENEFITS
2017/18 Company cars
For diesel cars add a 3% supplement but maximum still 37%.
For cars registered before 1 January 1998 the charge is based on engine size.
The list price includes accessories and is not subject to an upper limit.
The list price is reduced for capital contributions made by the employee up to £5,000.
Special rules may apply to cars provided for disabled employees.
*Rounding down to the nearest 5gm/km does not apply.
Band £
Rate %
Band £
Rate %
0 - 5,000
0 - 33,500† 33,501† - 150,000 Over 150,000
0* 20** 40 45l
0 - 5,000
0 - 32,000 32,001 - 150,000 Over 150,000
0* 20** 40 45l
CO2 emissions (gm/km) (round down to nearest 5gm/km)
% of car’s list price taxed
0-50*
9
51-75*
13
76-94*
17
95
18
100
19
105
20
110
21
115
22
120
23
125
24
130
25
135
26
140
27
145
28
150
29
155
30
160
31
165
32
170
33
175
34
180
35
185
36
190 and above
37
Car fuel benefit 2017/18
£22,600 x ‘appropriate percentage’*
*Percentage used to calculate the taxable benefit of the car for which the fuel is provided.
The charge does not apply to certain environmentally friendly cars.
The charge is proportionately reduced if provision of private fuel ceases part way through the year. The fuel benefit is reduced to nil only if the employee pays for all private fuel.
Married couple’s allowance (relief at 10%)*
(Either partner 75 or over and born before 6 April 1935.)
- min. amount *Age allowance income limit
£8,445
£8,355
Blind person’s allowance £2,320 £2,290
PENSION PREMIUMS
2017/18
Tax relief available for personal contributions: higher of £3,600 (gross) or 100% of relevant earnings (max. £40,000). Any contributions in excess of £40,000, whether personal or by the employer, may be subject to income tax on the individual. The £40,000 limit may be reduced where ‘adjusted income’ exceeds £150,000.
The limit may be reduced to £4,000 once money purchase pensions are accessed. Where the £40,000 limit is not fully used it may be possible to carry the unused amount forward for three years.
Employers will obtain tax relief on employer contributions if they are paid and made ‘wholly and exclusively’.
CAPITAL GAINS TAX
£3,220 £27,700 (Reduce age allowance by £1 for every £2 of adjusted net income over £28,000 (£27,700).)
£3,260 £28,000
Van benefit per vehicle 2017/18
Van benefit £3,230
Fuel benefit £610
The charges do not apply to vans if a ‘restricted private use condition’ is met throughout the year.
A reduced charge may be due if the van cannot in any circumstances emit CO2 by being driven.
MILEAGE ALLOWANCE PAYMENTS
2017/18 and 2016/17 Cars and vans Rate per mile
2016/17** Individuals £ £
Exemption 11,300
Standard rate 10% 10%
Higher rate* 20%
Trusts
Exemption 5,650 5,550
Rate 20% 20%
*For higher and additional rate taxpayers.
**Higher rates (18/28%) may apply to the disposal of certain residential property and carried interest.
Entrepreneurs’ Relief and Investors’ Relief
The first £10m of qualifying gains are charged at 10%. Gains in excess of the limit are charged at the rates detailed above.
Up to 10,000 miles 45p Over 10,000 miles 25p Bicycles 20p Motorcycles 24p
These rates represent the maximum tax free mileage allowances for employees using their own vehicles for business. Any excess is taxable. If the employee receives less than the statutory rate, tax relief can be claimed on the difference.
2017/18**
11,100 20%
INDIVIDUAL SAVINGS ACCOUNTS
Overall investment limit Junior account limit
2017/18
£20,000
£4,128
2016/17
£15,240
£4,080
20% 5% £85,000 £83,000
VALUE ADDED TAX
Standard rate
Reduced rate
Annual Registration Limit-from 1.4.17 (1.4.16 - 31.3.17 £83,000) Annual Deregistration Limit-from 1.4.17 (1.4.16 - 31.3.17 £81,000)
Budget Summary 2017
Rates and Allowances 2017/18 15