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Weekly benefit
Basic retirement pension
2017/18
£89.35 £88.45 90% of weekly earnings
Death rate Nil 40%
Statutory Sick Pay Statutory Maternity and Adoption Pay
Statutory Paternity Pay
*Or 90% of weekly earnings if lower.
Reliefs
Annual exemption £3,000 Small gifts £250
Marriage
- parent
- grandparent - bride/groom - other
£5,000 £2,500 £2,500 £1,000
6-7 20
STATUTORY PAY RATES
INHERITANCE TAX
Lifetime Chargeable transfers rate 2017/18 and 2016/17
Nil 0 - £325,000 (nil rate band) 20% Over £325,000
- single person - married couple
£122.30 £195.60 £159.55
£119.30 £190.80 £155.65
New state pension
Statutory pay rates - average weekly earnings £113 (£112) or over
For 2017/18, a further nil rate band of £100,000 may be available in relation to current or former residences. Nil rate bands of surviving spouses/civil partners may be increased by unused nil rate bands of deceased spouses/civil partners.
- first six weeks - next 33 weeks - two weeks
£140.98* £140.98*
£139.58* £139.58*
Reduced charge on gifts within seven years of death
2016/17
CAPITAL ALLOWANCES
Years before death % of death charge
0-3 3-4 4-5 5-6 100 80 60 40
CORPORATION TAX
Plant and machinery - Annual Investment Allowance (AIA)
The AIA gives a 100% write-off on most types of plant and machinery costs, including integral features and long life assets but not cars, of up to £200,000 p.a.
Any costs over the AIA fall into the normal capital allowance pools below. The AIA may need to be shared between certain businesses under common ownership.
Other plant and machinery allowances - The annual rate of allowance is 18%. An 8% rate applies to expenditure incurred on integral features and on long life assets.
A 100% first year allowance may be available on certain energy efficient plant and cars.
Cars - For expenditure incurred on cars, costs are generally allocated to one of the two plant and machinery pools. Cars with CO2 emissions not exceeding 130gm/km receive an 18% allowance p.a. Cars with CO2 emissions over 130gm/km receive an 8% allowance p.a. The emissions figure is reduced to 110gm/km for expenditure incurred on or after
Year to 31.3.18
Different rates apply for ring-fenced (broadly oil industry) profit.
Year to 31.3.17
Profits band £
Rate %
Profits band £
Rate %
All profits
19
All profits
20
Rate
Residential
Non-residential
Rate
%
0 2 5 10 12
£
0 - 125,000 125,001 - 250,000 250,001 - 925,000 925,001 - 1,500,000 Over 1,500,000
£
0 - 150,000 150,001 - 250,000 Over 250,000
%
0 2 5
1 April 2018.
STAMP DUTY AND STAMP DUTY LAND TAX
Land and buildings in England, Wales and N. Ireland
The rates apply to the portion of the total value which falls within each band.
Rates may be increased by 3% where further residential properties costing £40,000 or over are acquired.
SDLT is charged at 15% on interests in residential dwellings costing more than £500,000 purchased by certain non-natural persons.
Shares and securities - rate 0.5%.
LAND AND BUILDINGS TRANSACTION TAX
Land and buildings in Scotland
The rates apply to the portion of the total value which falls within each band.
Rates may be increased by 3% where further residential properties costing £40,000 or over are acquired.
Employee Earnings per week
Up to £157
£157.01 - £866
Employer**
% Earnings per week** % Nil* Up to £157 Nil
NATIONAL INSURANCE
2017/18 Class 1 (employed) rates
12 Over £157
13.8**
Over £866 2
*Entitlement to contribution-based benefits retained for earnings between £113 and £157 per week.
**The rate is 0% for employees under 21 and apprentices under 25 on earnings up to £866 per week.
Rate
Residential
Non-residential
Rate
%
0 2 5 10 12
£
0 - 145,000 145,001 - 250,000 250,001 - 325,000 325,001 - 750,000 Over 750,000
£
0 - 150,000 150,001 - 350,000 Over 350,000
%
0
3 4.5
Class 1A (employers) Class 1B (employers) Class 2 (self-employed)
Class 3 (voluntary) Class 4 (self-employed)
13.8% on employee taxable benefits 13.8% on PAYE Settlement Agreements
flat rate per week £2.85
small profits threshold £6,025 p.a.
flat rate per week £14.25
9% on profits between £8,164 and £45,000 plus 2% on profits over £45,000
This summary is published for the information of clients. It provides only an overview of the main proposals announced by the Chancellor of the Exchequer in his Budget Statement, and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this summary can be accepted by the authors or the firm.
16 Rates and Allowances 2017/18 Budget Summary 2017