Tax Rates

Introduction

Our Tax Rate Centre includes a summary of the most important tax rates and allowances for the tax year 2018/2019.

It is not intended to cover every aspect of this year's tax figures and is designed to act as overview only. No liability is accepted for any action taken or refrained from in consequence of its contents. Advice should always be sought from a professional.

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Income Tax

Band & Rates 2018 / 2019 2017 / 2018
Basic Rate - income up to £34,500 £33,500
Main Basic Rate 1 3 20% 20%
Savings Basic Rate 4 20% 20%
Default Basic Rate 6 20% 20%
Starting rate for savings income 0% 0%
Starting Rate limit (saving income) £5,000 £5,000
Dividend ordinary rate – for dividends otherwise taxable at the basic rate 2 5 7.5% 7.5%
Higher Rate - income over £34,500 £33,500
Main Higher Rate 1 3 40% 40%
Savings Higher Rate 4 40% 40%
Default Higher Rate 6 40% 40%
Dividend upper rate – for dividends otherwise taxable at the higher rate 2 5 32.5% 32.5%
Additional Rate - income over £150,000 £150,000
Main Additional Rate 1 3 45% 45%
Savings Additional Rate 4 45% 45%
Default Additional Rate 6 45% 45%
Dividend additional rate – for dividends otherwise taxable at the additional rate 2 5 38.1% 38.1%
Trustee's Income    
Standard rate on first £1,000 of income which would otherwise be taxable at the special rates for trustees Up to 20%, depends on the type of income Up to 20%, depends on the type of income
Trust Rate 45% 45%
Dividend Trust Rate 38.1% 38.1%

 

Income Tax Allowances 2018 / 2019 2017 / 2018
Personal Allowance 7 £11,850 £11,500
Income limit for Personal Allowance £100,000 £100,000
Income limit for married couples allowance 8 £28,900 £28,000
Maximum Married couple’s allowance for those born before 6 April 1935 10 £8,695 £8,445
Minimum Married couple’s allowance for those born before 6 April 1935 10 £3,360 £3,260
Blind persons allowance £2,390 £2,320
Transferrable Marriage Allowance5 9 £1,190 £1,150
Dividend Allowance 11 £2,000 £5,000
Personal savings allowance for basic rate taxpayer 12 £1,000 £1,000
Personal savings allowance for higher rate taxpayer 12 £500 £500
National Minimum Wage

Use the National Minimum Wage calculator to check if you’re paying a worker the National Minimum Wage or if you owe them payments from past years. The rates, below, apply from 1 April 2018.

Category of worker Hourly Rate
Aged 25 and above (national living wage rate £7.83
Aged 21 to 24 inclusive £7.38
Aged 18 to 20 inclusive £5.90
Under 18 (but above compulsory school leaving age) £4.20
Apprentices aged under 19 £3.70
Apprentices aged 19 and over, but in the first year of their aapprenticeship £3.70
Student Loan Recovery
Rate of threshold Figures to use 2018/2019
Employee earnings threshold for Plan 1 £18,330 per year
£1,527.50 per month
£352.50 per week
Employee earnings threshold for Plan 2 £25,000 per year
£2,083.33 per month
£480.76 per week
Student loan deductions 9%

 

1. Apply to non-dividend income, including income from savings, employment, property or pensions. From 2017-18, the main rates will be separated into the main rates, the savings rates and the default rates.

2. Apply to dividend income received above the £5,000 tax-free Dividend Allowance, introduced in April 2016 to replace the Dividend Tax Credit.

3. Apply to non-savings, non-dividend income, including income from employment, property or pensions not subject to the Scottish Rate of income tax..

4. Apply to savings income.

5. Apply to dividend income received above the £5,000 tax-free Dividend Allowance, introduced in April 2016 to replace the previous Dividend Tax Credit.

6. Apply to non-savings and non-dividend income of any taxpayer that is not subject to either the Main rates or the Scottish Rates of income tax.

7. The Personal Allowance reduces where the income is above £100,000 – by £1 for every £2 of income above the £100,000 limit. This reduction applies irrespective of date of birth.

8. This age-related allowance is reduced by £1 for every £2 of income over this limit.

9. This transferable allowance is available to married couples and civil partners who are not in receipt of married couple’s allowance. A spouse or civil partner who is not liable to income tax; or not liable at the higher or additional rates, can transfer this amount of their unused personal allowance to their spouse or civil partner. The recipient must not be liable to income tax at the higher or additional rates.

10. The relief for this allowance is given at 10%..

11. From April 2016, the new Dividend Allowance means that individuals will not have to pay tax on the first £5,000 of dividend income they receive.

12. From April 2016, the new Personal Savings Allowance means that basic rate taxpayers will not have to pay tax on the first £1,000 of savings income they receive and higher rate taxpayers will not have tax to pay on their first £500 of savings income.

National Insurance

Class 1 NICs: Employee and Employer rates and thresholds per week 2018 / 2019 2017 / 2018
Weekly Lower Earnings Limit (LEL) 1 £116 £113
Weekly Primary Threshold (PT) 1 £162 £157
Weekly Secondary Threshold (ST) 2 £162 £157
Upper Earnings (UEL) 3 £892 £866
Upper Secondary Threshold for U21’s 3 £892 £866
Apprentice Upper Secondary Threshold (AUST) for under 25s 3 £892 £866
Employment Allowance (per employer) £3,000/year £3,000/year
Employee's (primary) Class 1 contribution rates
Below LEL 0% 0%
LEL - PT 4 0% 0%
PT - UEL 12% 12%
Above UEL 2% 2%
Maried woman's reduced rate for (primary) Class 1 contribution rates
Weekly earnings from between the PT and UEL 5.85% 5.85%
Weekly earnings from above UEL 2% 2%
Employer's (secondary) Class 1 contribution rates
Below ST 5 0% 0%
Above ST 5 13.8% 13.8%
Employer's (secondary) Class 1 contribution rates for employees under 21
Below UST 6 0% 0%
Above UST 6 13.8% 13.8%
Employer's (secondary) Class 1 contribution rates for Apprentices under 25
Below AUST 7 0% 0%
Above AUST 7 13.8% 13.8%

 

Class 2 NICs: Self-employed rates and thresholds per week 2018 / 2019 2017 / 2018
Small Profits Threshold (SPT) 1 £6,205 £6,025
Annual profits
Below SPT 8 £0/week £0/week
Above SPT 8 9 £2.95 £2.85
Special Class 2 rate for share fishermen £3.60 £3.50
Special Class 2 rate for volunteer development workers £5.80 £5.65

 

Class 3 NICs: Other rates and thresholds per week 2018 / 2019 2017 / 2018
Voluntary contributions 1 10 £14.65 £14.25

 

Class 4 NICs: Self-employed rates and thresholds per year 2018 / 2019 2017 / 2018
Lower Profits Limit (LPL) 1 £8,424 £8,164
Upper Profits Limit (UPL) 3 £46,350 £45,000
Below LPL 11 0% 0%
LPL to UPL 11 9% 9%
Above UPL 11 2% 2%

 

Class 1 NICs: Thresholds Week Month Year
Lower earnings limit (LEL) £116 £503 £6,032
Primary Threshold (PT) £162 £702 £8,424
Secondary Threshold (ST) £162 £702 £8,424
Upper Secondary Threshold (under 21) (UST) and Apprentice Upper Secondary Threshold (apprentice under 25) (AUST) £892 £3,863 £46,350
Upper earnings limit (UEL) £892 £3,863 £46,350
Class 1 NICs: rates for employee (primary) contributions
NICs category letter Earnings at or above LEL up to and including PT Earnings above PT up to and including UEL Balance of earnings above UEL
A 0% 12% 2%
B 0% 5.85% 2%
C NIL NIL NIL
H (Apprentice under 25) 0% 12% 2%
J 0% 2% 2%
M (under 21) 0% 12% 2%
Z (under 21 - deferment) 0% 2% 2%
Class 1 NICs: rates for employer (secondary) contributions
NICs deductions should not be made on earnings below the Lower Earnings Limit (LEL).
NICs category letter Earnings at or above LEL up to and including ST Earnings above ST up to and including UEL / UST / AUST Balance of earnings above UEL / UST / AUST
A 0% 13.8% 13.8%
B 0% 13.8% 13.8%
C 0% 13.8% 13.8%
H  (under 25 0% 0% 13.8%
J 0% 13.8% 13.8%
M (under 21) 0% 0% 13.8%
Z  (under 21 deferment) 0% 0% 13.8%

 

1. Uprated by CPI

2. Autumn Statement 2016 announced that the Secondary Threshold would be aligned with the Primary Threshold. From April 2018 onwards, it will be uprated in line with CPI.

3. These thresholds are uprated in line with the Higher Rate Threshold to maintain alignment between the Upper Earnings Limit and Higher Rate Threshold.

4. No National Insurance contributions (NICs) are actually payable but a notional Class 1 NIC is deemed to have been paid in respect of earnings between the LEL and PT to protect contributory benefit entitlement.

5. The limit is defined as ST – Secondary Threshold

6. The limit is defined as UST – Upper Secondary Threshold

7. The limit is defined as AUST – Apprentice Upper Secondary Threshold

8. The Limit is defined as SPT – Small Profits Threshold

9. Class 2 NICs are liable to be paid by all self-employed persons with profits above the Small Profits Threshold (SPT). The self-employed may choose to pay Class 2 if their profits are below the SPT.

10. Class 3 NICs can be paid by contributors to make the year a qualifying year for the basic State Pension (new State Pension from 6 April 2016) and Bereavement Benefit purposes.

11. These limits are defined as LPL – Lower Profits Limit; and UPL – Upper Profits Limit

Tax credits, Child Benefit and Guardian's Allowance

Working Tax Credit - £ per year (unless stated) 2018 / 2019 2017 / 2018
Basic element £1,960 £1,960
Couple and lone parent element £2,010 £2,010
30 hour element £810 £810
Disabled worker element £3,090 £3,000
Severe disability element £1,330 £1,290

 

Childcare element of the Working Tax Credit - £ per year (unless stated) 2018 / 2019 2017 / 2018
Maximum eligible cost for one child £175/week £175/week
Maximum eligible cost for two or more children £300/week £300/week
Percentage of eligible costs covered 70% 70%

 

Child Tax Credit - £ per year (unless stated) 2018 / 2019 2017 / 2018
Child Tax Credit Family element £545 £545
Child element £2,780 £2,780
Disabled child element £3,275 £3,175
Severely disabled child element £4,600 £4,465

 

Child Benefit - £ per week 2018 / 2019 2017 / 2018
Eldest/Only Child £20.70 £20.70
Other Children £13.70 £13.70

 

Guardian Allowance - £ per week 2018 / 2019 2017 / 2018
Guardian’s Allowance £17.20 £16.70

 

Income thresholds and withdrawal rates - £ per year (unless stated) 2018 / 2019 2017 / 2018
First income threshold £6,420 £6,420
First withdrawal rate (per cent) 41% 41%
First threshold for those entitled to Child Tax Credit only £16,105 £16,105
Income disregard £2,500 £2,500
Income Fall Disregard £2,500 £2,500

SSP & Maternity Pay

Statutory maternity, paternity and adoption pay
Type of payment or recovery Figures to use 2018/2019
Statutory Maternity Pay (SMP) - weekly rate for first six weeks 90% of the employee's average weekly earnings
Statutory Maternity Pay (SMP) - weekly rate for remaining weeks £145.18 or 90% of the employee's average weekly earnings, whichever is lower
Statutory Paternity Pay (SPP) - weekly rate £145.18 or 90% of the employee's average weekly earnings, whichever is lowe
Statutory Adoption Pay (SAP) - for first 6 weeks 90% of employee's average weekly earnings
Statutory Adoption Pay (SAP) - weekly rate for remaining weeks £145.18 or 90% of the employee's average weekly earnings, whichever is lower
Statutory shared parental pay (ShPP) £145.18 or 90% of the employee’s average weekly earnings, whichever is lower
SMP/SPP/ShPP/SAP - proportion of your payments you can recover from HMRC 92% if your total Class 1 NICs (both employee and employer contributions) are above £45,000 for the previous tax year.

103% if your total Class 1 National Insurance for the previous tax year is £45,000 or lower

Statutory Sick Pay
The same weekly Statutory Sick Pay rate applies to all employees. However, the amount you must actually pay an employee for each day they're off work due to illness (the daily rate) depends on the number of 'qualifying days' they work each week.

 

SSP 2018/2019 Rate of payment or recovery (rounded in brackets)
Standard weekly rate £92.05 (N/A)
Daily rate - employees with 1 qualifying day in the week £92.05 (£92.0500)
Daily rate - employees with 2 qualifying days in the week £46.03 (£46.0250)
Daily rate - employees with 3 qualifying days in the week £30.69 (£30.6833)
Daily rate - employees with 4 qualifying days in the week £23.02 (£23.0125)
Daily rate - employees with 5 qualifying days in the week £18.41 (£18.4100)
Daily rate - employees with 6 qualifying days in the week £15.35 (£15.3416)
Daily rate - employees with 7 qualifying days in the week £13.15 (£13.1500)

Vehicle Benefits

Chargeable on employees earning £8,500 or over (including benefits), and directors.

Car Benefits xxx
The taxable benefit is calculated as a percentage of the list price of the car, on the day before it was first registered, plus certain accessories. This percentage depends upon the rate at which the car emits carbon dioxide (CO2), and the fuel type.

Ultra Low Carbon Vehicles (ULEVs) are rewarded with lower BIK rates – from April 2015, plug-in hybrids are rated at 5% or 9% (depending on official CO2 emissions), and battery electric cars are rated at 5%.

4% up to a maximum of 37%, is added for diesel cars that are not certified to the Real Driving Emissions 2 (RDE2) standard. 0% is added for cars which are certified to the RDE2 standard.

CO2 (g/km) Petrol Deisel
1 - 50 13% 17%
51 - 75 16% 20%
76 - 94 19% 23%
95 - 99 20% 24%
100 - 104 21% 25%
105 - 109 22% 26%
110 - 114 23% 27%
115 - 119 24% 28%
120 - 124 25% 29%
125 - 129 26% 30%
130 - 134 27% 31%
135 - 139 28% 32%
140 - 144 29% 33%
145 - 149 30% 34%
150 - 154 31% 35%
155 - 159 32% 36%
160 - 164 33% 37%
165 - 169 34% 37%
CO2 (g/km) Petrol Deisel
170 - 174 35% 37%
175 - 179 36% 37%
180 - 184 37% 37%
185 - 189 37% 37%
190 - 194 37% 37%
195 - 199 37% 37%
200 - 204 37% 37%
205 - 209 37% 37%
210 - 214 37% 37%
215 - 219 37% 37%
220+ 37% 37%
Finding your CO2
To find out how much CO2 your company car emits, you may wish to do one of the following: check the cars V5 Registration Document; contact your Dealer; vist the Vehicle Certification Agency Website;.

To access the HMRC Car & Fuel Benefits Calculator, please click here.

Company cars: advisory fuel rates
These rates apply to all journeys on or after 1 December 2016 until further notice, allowing them to reflect fuel prices more quickly. For one month from the date of change, employers may use either the previous or new current rates, as they choose. Employers may therefore make or require supplementary payments if they so wish, but are under no obligation to do either. Petrol hybrid cars are treated as petrol cars for this purpose. If the employee pays for the full cost of all fuel for private journeys (usually including home to work) there will be no car fuel benefit. In all other cases the full tax charge will be due. The Car fuel benefit charge multiplier for 2018/2019 is £23,400.
Engine size Petrol Diesel LPG
1400cc or smaller 11p N/A 7p
1401cc to 2000cc 14p N/A 8p
Bigger than 2000cc 22p N/A 13p
Less than 1600cc N/A 9p N/A
1601cc - 2000cc N/A 11p N/A
Bigger than 2000cc N/A 13p N/A
Company vans
The taxable benefit for the unrestricted use of company vans is £3,350 (with no reduction for older vans) plus a further £633 of taxable benefit if fuel is provided by the employer for private travel.
Van and fuel charge Van Fuel Total
Tax (20% taxpayer) £670 £126.60 £796.60
Tax (40% taxpayer) £1,340 £253.20 £1,593.20
Tax (45% taxpayer) £1,507.50 £284.85 £1,792.35
Employer's class 1A NICs £462.30 £87.35 £549.65
Fuel Benefit and Van Benefit charge
Income Tax Allowances 2018 / 2019 2017 / 2018
Car fuel benefit charge multiplier £23,400 £22,600
Van fuel benefit charge £633 £610
Van benefit charge £3,350 £3,230

Mileage Allowances & Road Tax

Employee vehicles: mileage payments for business travel
Type of vehicle Rate per business mile 2017-18
Car For tax purposes: 45p for the first 10,000 business miles in a tax year, then 25p for each subsequent mile.

For NICs purposes: 45p for all business miles

Motorcycle 24p for both tax and NICs purposes and for all business miles
Cycle 20p for both tax and NICs purposes and for all business miles
Passenger payments: Cars and Vans
5p per passenger per business mile for carrying fellow employees in a car or van on journeys which are also work journeys for them. Only payments specifically for carrying passengers count and there is no relief if you receive less, or nothing at all.
VED bands and rates for cars first registered on or after 1 April  2018.

Autumn Budget 2017 announced that new diesel vehicles registered after 1 April 2018 that do not meet the RDE2 standard will be charged a supplement on their First Year Rate to the effect of moving up by one VED band.

CO2 emissions (g/km) Standard Rate First Year Rate First Year Rate Diesel
0 £0 £0 £0
1-50 £140 £10 £25
51-75 £140 £25 £105
76-90 £140 £105 £125
91-100 £140 £125 £145
101-110 £140 £145 £165
111-130 £140 £165 £205
131-150 £140 £205 £515
151-170 £140 £515 £830
171-190 £140 £830 £1,240
191-225 £140 £1,240 £1,760
226-255 £140 £1,760 £2,070
Over 255 £140 £2,070 £2,070
VED bands and rates for cars registered on or after March 2001 but before 1 April 2017.
VED Band CO2 emissions (g/km) Tax Year 2018 to 2019 Tax Year 2017 to 2018
N/A Up to 100 £0 £0
N/A 101-110 £20 £20
N/A 111-120 £30 £30
N/A 121-130 £120 £115
N/A 131-140 £140 £135
N/A 141-150 £155 £150
N/A 151-165 £195 £190
N/A 166-175 £230 £220
N/A 176-185 £250 £240
N/A 186-200 £290 £280
N/A 201-225 £315 £305
N/A 226-255 £540 £520
N/A Over 255 £555 £535
2018/2019 Road Tax for cars & vans registered before 1 March 2001
Engine Size 2018 / 2019 2017 / 2018
1549cc and below £155 £150
Above 1549cc £255 £245
2018/2019 Road Tax for vans registered after 1 March 2001
Vehicle registration date 2018 / 2019 2017 / 2018
Early Euro 4 and Euro 5 compliant vans £140 £140
All other vans £250 £240

Pensions

The Basic State Pension applies if you are;
  • a man born before 6 April 1951
  • a woman born before 6 April 1953

The basic State Pension is a regular payment from the government that you can get if you reached State Pension age before 6 April 2016. To get it, you must have paid or been credited with National Insurance contributions. The most you can currently get is xx£122.30 per week. The basic State Pension increases every year by whichever is the highest of the following:

  • earnings - the average percentage growth in wages (in Great Britain)
  • prices - the percentage growth in prices in the UK as measured by the Consumer Prices Index (CPI)
    xx2.5%
Basic state pension 2018 / 2019 2017 / 2018
Single person per year £6,549.40 £6, 359.60
Spouse/civil partner addition per year £3,926 £3,811.60
Married couple/civil partnership total per year £10,475.40 £10,171.20
Maximum age for tax relief 74 74
Minimum age for taking benefits 55 55
Lifetime allowance charge – lump sum paid 55% 55%
Lifetime allowance charge – monies retained 25% 25%
On cumulative benefits exceeding £1,030,000 £1,000,000
Annual allowance £40,000 £40,000
Maximum tax-free lump sum 25% 25%
Money Purchase Annual Allowance £4,000 £4,000

 

New State Pension

You’ll be able to claim the new State Pension if you’re:
  • a man born on or after 6 April 1951
  • a woman born on or after 6 April 1953

If you reached State Pension age before 6 April 2016, you’ll get the State Pension under the old rules instead. The earliest you can get the new State Pension is when you reach State Pension age.

Your National Insurance record

You’ll usually need at least 10 qualifying years on your National Insurance record to get any State Pension. They don’t have to be 10 qualifying years in a row.

This means for 10 years at least one or more of the following applied to you:

  • you were working and paid National Insurance contributions
  • you were getting National Insurance credits for example if you were unemployed, ill or a parent or carer
  • you were paying voluntary National Insurance contributions

If you’ve lived or worked abroad you might still be able to get some new State Pension.

You might also qualify if you’ve paid married women’s or widow’s reduced rate contributions.

Working after State Pension age

You don’t have to stop working when you reach State Pension age but you’ll no longer have to pay National Insurance. You can also request flexible working arrangements.

 

Tax Free Savings Accounts
  Tax year 2018 to 2019 Tax year 2017 to 2018
Individual Savings Account (ISA) subscription limit £20,000, of which £4,000 can be saved into a Lifetime ISA £20,000, of which £4,000 can be saved into a Lifetime ISA
Junior ISA subscription limit £4,260 £4,128
Child Trust Fund (CTF) subscription limit £4,260 £4,128

Capital Gains

Group 2018 / 2019 2017 / 2018
Main rates for individuals 10% / 20% 10% / 20%
Rates for individuals (for gains on residential property not eligible for Private Residence Relief, and carried interest) 18 % / 28% 18 % / 28%
Main rate for trustees and personal representatives 20% 20%
Rate for trustees and personal representatives (for gains on residential property not eligible for Private Residence Relief) 28% 28%
Annual exempt amount (AEA) for individuals and personal representatives £11,700 £11,300
AEA for most trustees £5,850 £5,650
Rate on gains subject to entrepreneurs’ relief 10% 10%
Rate on gains subject to investors’ relief 10% 10%
Entrepreneurs’ relief: lifetime limit on gains for entrepreneurs £10,000,000 £10,000,000
Investors’ relief: separate lifetime limit on gains for external investors £10,000,000 £10,000,000

Corporation Tax

Level of profits From 01/04/16 From 01/04/17 From 01/04/18
£0 - £300,000 - small profits rate N/A N/A N/A
£300,001 - £1,500,000 N/A N/A N/A
Marginal rate fraction N/A N/A N/A
£1,500,001 or more – main rate N/A N/A N/A
Main rate 20% 19% 19%
Corporation Tax Allowances & Reliefs
Financial Year 2016 to 2017 Financial Year 2017 to 2018 Financial Year 2018 to 2019
Plant and machinery: main rate expenditure 18% 18% 18%
Plant and machinery: special rate expenditure 8% 8% 8%
Annual investment allowance (AIA) £200,000 £200,000 £200,000
First year allowances (e.g. for certain energy-saving/water efficient products) 100% 100% 100%
R&D tax credits SME scheme 230% 230% 230%
R&D SME payable credit 14.5% 14.5% 14.5%
R&D Expenditure Credit 11% 11% 12%
Patent Box 1 10% 10% 10%
Film tax relief 25% 25% 25%
High-end TV tax relief 25% 25% 25%
Videogames tax relief 25% 25% 25%
Open ended investment companies and authorised unit trusts 2 20% 20% 20%

1. The Patent Box has been phased in from April 2013, with companies being able to claim 60% of the benefit in 2013 to 2014, 70% in 2014 to 2015, 80% in 2015 to 2016, 90% in 2016 to 2017 and 100% in 2017 to 2018. read more

2. For open ended investment companies and authorised unit trusts, the applicable corporation tax rate is equal to the basic rate of Income Tax.

Value Added Tax

Vat Rates April 2018/2019 April 2017/2018
Standard Rate 20% 20%
Vat Fraction 1/6 1/6
Reduced Rate 5% 5%

 

Taxable Turnover Limits Amounts
Registration - last 12 months or next 30 days over £85,000 from 1 April 2018
Deregistration - next 12 months under £83,000 from 1 April 2018
Cash accounting scheme - up to £1,350,000
Optional flat rate scheme - up to £150,000
Annual accounting scheme - up to £1,350,000

Inheritance Tax

xxx From 6 April 2017, everyone has an additional £100,000 tax-free allowance to use against the value of their home.
Detail 2018/2019 2017/2018
Standard threshold £325,000 £325,000
Residence nil rate band limit £125,000 £100,000
Rate of tax on balance:
Chargeable lifetime transfers 20% 20%
Transfers on, or within 7 years of, death 40% 40%
Reduced Rate (1) 36% 36%
All lifetime transfers not covered by exemptions and made within seven years of death will be added back into the estate for the purpose of calculating the tax payable. Tax attributable to such transfers is then reduced:
Years before death 0 - 3 3 - 4 4 - 5 5 - 6 6 - 7
Tax reduced by 0% 20% 40% 60% 80%
Main Reliefs
Business Property %
Business or interest therein 100%
Qualifying shareholdings in unquoted* companies 100%
Land, buildings, machinery, or plant used by transferor's controlled company or partnership 50%
Agricultural property 50% or 100%

* Unquoted companies include those listed on AIM

Main Exemptions
  • Most transfers between spouses and civil partners.
  • The first £3,000 of lifetime transfers in any tax year plus any unused balance from previous year.
  • Gifts of up to but not exceeding £250 p.a. to any number of persons.
  • Gifts in consideration of marriage or civil partnership of: up to £5,000 by a parent, up to £2,500 by a grandparent, or up to £1,000 by any other person.
  • Gifts made out of income that form part of normal expenditure and do not reduce the standard of living.
  • Gifts to charities, whether made during lifetime or on death.
  • From April 2012, a reduced rate of IHT of 36% will be introduced where 10 per cent of more of the net estate is left to charity.

Other Taxes

Stamp Duty Land Tax – Residential Property
Property Value Rate (on portion of value above threshold) Rate (on portion of value above threshold) on or after 1 April 2016 if purchase is of an additional residential property
0 to £125,000 0% 3%
£125,000 to £250,000 2% 5%
£250,000 to £925,000 5% 8%
£925,000 to £1.5 million 10% 13%
£1.5 million + 12% 15%

Stamp Duty Land Tax – Non-residential Property

Property Value Rate on or after 17 March 2016 (on portion of value above threshold)
0 to £150,000 0%
£150,000 to £250,000 2%
£250,000 + 5%
Net Present value (NPV) of the Lease Rate on or after 17 March 2016 (on portion of value above threshold)
0 to £150,000 0%
£150,000 to £5 million 1%
£5 million + 2%
Stamp Duty Land Tax - rates for first-time buyers purchasing properties worth £500,000 or less
Property Value Rate (on portion of value above threshold) on or after 22 November 17 if purchase qualifies for first-time buyer relief
0 to £300,000 0%
£300,000 to £500,000 5%
£500,000 + Standard rates above apply
Annual tax on Enveloped Dwellings
Property Value Charge for tax year 2018 to 2019 Charge for tax year 2017 to 2018
More than £500,000 but not more than £1 million £3,600 £3,500
More than £1 million but not more than £2 million £7,250 £7,050
More than £2 million but not more than £5 million £24,250 £23,550
More than £5 million but not more than £10 million £56,550 £54,950
More than £10 million but not more than £20 million £113,400 £110,100
More than £20 million+ £226,950 £220,350

Tax Calendar check if items still valid - dates already changedy

April 2018
5 Last day of 2017/18 tax year.
Deadline for 2017/18 ISAs.
Last day to make disposals using the 2017/18 CGT exemption.
Last date for contracting back into the State Second Pension for 2017/18.
14 Due date for income tax for the CT61 period to 31 March 2018.
19/22 Quarter 4 2017/18 PAYE remittance due.
20 Interest will begin to accrue on unpaid PAYE/NI for 2017/18.
30 Normal annual adjustment for VAT partial exemption calculations (monthly returns).
May 2018
1 Start of daily penalties for 2017 online Tax Return not yet filed. Additional penalties may apply for further delay.
3 Quarterly submission date of P46 (Car) for quarter to 5 April.
19 Last day for filing forms P14, P35, P38, and P38A returns - without incurring penalties.
31 Last day to issue 2017/18 P60s to employees.
June 2018
30 End of CT61 quarterly period.
July 2018
6 Deadline for submission of Form 42 (transactions in shares and securities).
Deadline for submission of EMI40 (EMI Annual Return)
File Taxed Award Scheme Returns, file P11Ds, P11D(b)s and P9Ds. Issue copies of P11Ds or P9Ds to employees.
14 Due date for income tax for the CT61 period to 30 June 2018.
19/20 Quarter 1 2018/19 PAYE remittance due.
Final date for payment of 2017/18 Class 1A NICs.
31 Second self assessment payment on account for 2017/18.
Annual adjustment for VAT partial exemption calculations (April VAT year end).
5% surcharge on any tax unpaid for 2016/17.
Deadline for tax credit Annual Declaration (if estimated, final figures required by 31 January 2019).
August 2018
2 Quarterly submission date of P46 (Car) for quarter to 5 July.
31 Annual adjustment for VAT partial exemption calculations (May VAT year end.
September 2018
30 End of CT61 quarterly period.
Last day for UK businesses to reclaim  EC VAT chargeable in 2016.
October 2018
1 Due date for payment of Corporation Tax for period ended 31 December 2017.
5 Individuals/trustees must notify HMRC of new sources of income/chargeability in 2017/18 if a Tax Return has not been received.
14 Due date for income tax for the CT61 quarter to 30 September 2018.
19/22 Quarter 2 2018/19 PAYE remittance due.
31 Last day to file 2018 paper Tax Return.
November 2018
1 £100 penalty if 2018 paper Tax Return not yet filed. Additional penalties may apply for further delay.
2 Quarterly submission date of P46 (Car) for quarter to 5 October.
December 2018
30 Last day for online submission of 2018 Tax Return for HMRC to collect tax through clients’ PAYE code, where they owe less than £3,000.
31 Last day for non-EC traders to reclaim recoverable UK VAT suffered in the year to 30 June 2018.
End of relevant year for taxable distance supplies to UK for VAT registration purposes.
End of relevant year for cross-border acquisitions of taxable goods in the UK for VAT registration purposes.
End of CT61 quarterly period.
Filing date for Corporation Tax Return Form CT600 for period ended 31 December 2017.
January 2019
1 Due date for payment of Corporation Tax for period ended 31 March 2018.
14 Due date for income tax for the CT61 quarter to 31 December 2018.
18/22 Quarter 3 2018/19 PAYE remittance due.
31 First self assessment payment on account for 2018/19.
Capital gains tax payment for 2017/18.
Balancing payment - 2017/18 income tax/Class 4 NICs.
Last day to renew 2018/19 tax credits.
Deadline for amending 2016/17 Tax Return.
Last day to file the 2018 Tax Return online.
February 2019
1 £100 penalty if 2018 Tax Return not yet filed. Additional penalties may apply for further delay. Interest starts to accrue on 2017/18 tax not yet paid.
2 Quarterly submission date of P46 (Car) for quarter to 5 January.
14 Last date (for practical purposes) to request NIC deferment for 2018/19.
March 2019
2 Last day to pay any balance of 2017/18 tax and Class 4 NICs to avoid an automatic 5% surcharge.
31 End of Corporation Tax financial year.
End of CT61 quarterly period.
Filing date for Corporation Tax Return Form CT600 for period ended 31 March 2018.