HOME    ABOUT US    SERVICES    EXPERIENCE/CUSTOMERS    TAX RATES    LINKS    JOB OPPORTUNITIES    CONTACT US
Krogh & Partners Limited
 
Your auditor, accountant and advisor in the United Kingdom

Tax rates

Tax rates 2016/17
Income Tax
Annual investment limits
Vehicle Benefit
Tax free mileage allowances
National Insurance Contributions
Pension contributions
Inheritance Tax
Value Added Tax
Capital Gains Tax
Corporation Tax
Main capital allowances
Property Taxes
Key dates and deadlines
Useful rates


Income Tax





Main allowances



2017/18
2016/17
Personal Allowance (PA) * ***    
11,500
11,000
Blind Person's Allowance 
2,320
2,290
Rent a room relief **
7,500
7,500
Trading income **
1,000
N/A
Property income **
1,000
N/A



*PA will be withdrawn at every 1 for every 2 by which 'adjusted income' exceeds 100,000. There will therefore be no allowance given if adjusted income is 123,000 or more (2016/17: 122,000).

***Up to 10%of the PA (2017/18: 1,150; 2016/17: 1.100) can be transferred to a spuse or civil partner who is no more than a basic rate taxpayer.

**If gross income exceeds this limit, the limit may be deducted instead of actul expenses.



Rate Bands

2017/18

2016/17
Basic rate band (BRB)   
33,500
32,000
Higher rate band (HRB) 
33,501-150,000
32,001-150,000
Additional rate    
over 150,000
over 150,000
Scottish taxpayers


- BRB
31,500
32,000
- HRB
31,500-150,000
32,001-150,000
Personal Savings Allowance (PSA)


- Basic rate taxpayer
1,000
1,000
- Higher rate taxpayer
500
500
Dividend Nil Rate Band (DNRB)
5,000
5,000

BRB and additional rate thresholds are increased by personal pension contributions (up to permitted limit) and Gift Aid donations.

Tax rates



2017/18
2016/17
Rates differ for General/Savings/Dividends
G
S
D
G
S
D
Basic rate
20%
20%
7.5%
20%
20%
7.5%
Higher rate
40%
40%
32.5%
40%
40%
32.5%
Additional rate
45%
45%
38.1%
45%
45%
38.1%



General income (salary, pensions, business profits, rent) uses personal allowance, basic rate and higher rate bands before savings income (interest). To the extent that savings income falls in the first 5,000 of the basic rates band, it is taxed at nil rather than 20%.

The PSA (see allowances above) will tax interest at nil, where it would otherwise be taxable at 20% or 40%.

Dividens are normlly taxed as the 'top slice' of income. The DNRB taxes the first 5,000 of dividend income at nil, rather than the rate that would otherwise apply.



High Income Child Benefit Charge (HICBC)

1% of child benefit for each 100 of adjusted net income between 50,000 and 60,000.

Remittance basis charge

For non-UK domiciled individuals who have been UK resident in at least:


2017/18

2016/17
7 of the preceding 9 tax years
30,000
30,000
12 of the preceding 14 tax years
60,000
60,000
17 of the preceding 20 tax years
N/A
90,000