Tax Rates & Allowances

Current Tax Rates and Allowances

How much Income Tax someone pays in a year depends on;

  • How much their taxable income is above their personal allowance
  • And how much of this falls within each tax band

The financial years runs from 6th April one year to 5th April the following year. The following information was updated by HMRC in May 2018. Always check for up to date information on the Government website or contact the team at Cortex.

Personal Allowances

The Personal Allowances is the amount of income you can earn before you pay tax on it;

  2018-2019 2017-2018 2016-2017 2015-2016
Personal allowance £11,850 £11,500 £11,000 £10,600

The income limit for personal allowance remains at £100,000. Those born before 6th April 1948 are entitled to a larger personal allowance.

Other allowances

Allowances 2018-2019 2017-2018 2016-2017 2015-2016
Married couple’s allowance MAXIMUM £8,695 £8.445 £8,355 £8,355
Married couple’s allowance MINIMUM £3,360 £3,260 £3,220 £3,220

Tax rates and bands

Tax is paid on the amount of taxable income remaining after allowances have been deducted.

Band Rate Income after allowances

2018-2019

Income after allowances

2017-2018

Income after allowances

2016-2017

Income after allowances

2015-2016

Basic rate in UK 20% Up to £34,500 Up to £33,500 Up to £32,000 Up to £31,785
Higher rate in UK 40% £34,501 to £150,000 £33,501 to £150,000 £32,001 to £150,00 £31,786 to £150,000
Additional rate 45% Over £150,000 Over £150,000 Over £150,000 Over £150,000

There are now different tax rates and bands in Scotland. Check out the Scottish Government website for more information.

Capital Gains Tax

This is the rate of tax you pay on capital gains from property, although you don’t normally pay tax on residential property.

If you are a higher or additional rate taxpayer, you will pay 28% on your gains from residential property and 20% on gains from other chargeable assets.

If you are a basic rate taxpayer, the rate of capital tax gains rate you will pay depends on the size of your gain. You can calculate this by using the HMRC capital gains tax formula.

If you are a trustee or a business, trustees or personal representatives of someone who has died will pay 28% on residential property and 20% on other chargeable assets.

If you are a sole trader or partnership, you’ll pay 10% and your gains will qualify for Entrepreneurs’ Relief.

Child Benefits, child tax credits and working tax credits also change from year to year – check out the latest child tax credit rate and similar.

How can we help?

At Cortex Accounting, we provide a range of accountancy services for clients and business across the North West including, Liverpool, Manchester, Warrington, Northwich and throughout Cheshire. We can help you get more from your money!