Tax Rates/Allowances 2019/20

7th March 2019

Based on the Budget announcements of 29 October 2018 please see below some of the main tax rates & allowances for the forthcoming 2019/20 tax year.

Income Tax

Personal allowance £12,500

Starting rate £1-£5,000 20% (the rate on non dividend savings income is 0% where taxable non savings income does not exceed £5,000)

Basic rate £5001-£37,500 20%

Higher rate £37,501-£150,000 40%

Additional rate over £150,000 45%


Dividends are subject to different rates of tax. The dividend allowance of £2000 is 0%, dividends above this are taxed at 7.5% for starting/basic rate taxpayers, 32.5% for higher rate taxpayers and 38.1% for additional rate taxpayers.

The basic rate band can be extended by gross Gift Aid donations and most personal pension contributions.

The personal allowance is reduced by £1 for every £2 on income over £100,000.

A high income child benefit charge applies where adjusted net income is in excess of £50,000. The charge is calculated at 1% of the benefit for each £100 of adjusted net income over £50,000 and therefore charges the full amount if adjusted net income exceeds £60,000.

There are differing rates of income tax for Scottish taxpayers which have not been outlined above.

Other allowances:

Married/civil partners transferable allowance £1,250 (available where one partner is a non taxpayer and the other is a basic rate tax payer)

Savings allowance £1,000 (£500 for higher rate tax payers and £nil for additional rate tax payers)

Trading income allowance £1,000 (if gross income is in excess of £1,000 then a deduction of £1,000 permitted if greater than actual expenses)

Property income allowance £1,000 (if gross income is in excess of £1,000 then a deduction of £1,000 permitted if greater than actual expenses)

National Insurance


Class 2 £3.00 per week but can be exempt if profits are below £6,365

Class 4 9% payable on profits between £8,632 and £50,000, 2% payable on profits above £50,000


Class 1 12% on earnings between £166 and £962 per week, 2% on earnings over £962 per week


Class 1 13.8% on earnings above £166 per week

Class 1A £13.8%


Class 3 £15 per week

Corporation Tax

Corporation Tax 19%

Tax payable on loans to participators 32.5% (can be recovered once loans have been repaid)


Compulsory registration if taxable supplies are above £85,000 within the previous 12 months or the next 30 days alone.

Capital Allowances

Plant and machinery

Annual investment allowance 100% (maximum £1m pa from 1.1.2019 to 31.12.2020 (£200,000 pa up to 31.12.2018 and from 1.1.2021)).

Long life assets and integral features 6% (reducing balance basis)

Other assets 18% (reducing balance basis)

First year allowance 100% (only available on certain expenditure)


CO2 emissions 50 g/km or less 100%

CO2 emissions 51-110 g/km 18% (reducing balance basis)

CO2 emissions over 110 g/km 8% (reducing balance basis)

Structures and buildings

Expenditure on non residential structures and buildings on or after 29.10.2018 2%

Capital Gains Tax

Annual exemption £12,000

Rate payable by basic and starting rate taxpayers 10% (8% surcharge on residential property)

Rate payable by higher and additional rate taxpayers 20% (8% surcharge on residential property)

Entrepreneurs relief lifetime allowance remains at £10m and where entrepreneurs relief applies there is a rate of 10%.

Note: From 6 April 2020 certain disposals of residential property must be reported and the tax paid to HMRC within 30 days of sale. Similar rules for non-residents come into force from 6 April 2019.

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