We have summarised the key rates and allowances which are fundamental to our business and personal lives. We are sure that you will find them a useful point of reference and have set out below a few examples of how they can be used.
Personal tax rates
A number of changes have taken place to the personal tax rates in recent years, including changes to the taxation of dividends and ‘tax free’ allowances for both savings income and dividends. Income tax rates and bands are also different for Scottish taxpayers so make sure you know the current state of play.
Buying property
If you buy property then property taxes payable are different depending where the property is in the United Kingdom. Stamp Duty Land Tax is payable on property in England and Northern Ireland, whilst Land and Buildings Transaction Tax is payable on property in Scotland and Land Transaction Tax introduced from 1 April 2018 on property in Wales. There are also changes for some first time buyers. Our tax rates highlight the main rates so that you can consider the potential cost of buying property.
Asset sales
If you sell an asset such as land, capital gains tax may be due. Our tax rates highlight the main rates and reliefs so that you can consider the tax bill that may arise.
Rates for businesses
If you run a business, obtaining the right allowances on equipment that your business buys can affect the tax that your business has to pay each year. We have summarised the main allowances that are available.
Rates for employees
There are increases in the company car benefits regime again this year, including an increased diesel supplement of 4%, so our rates explain how these are computed to help ensure that you are paying the correct amount of tax.
Rates that affect us all
Long term planning for a comfortable retirement can never start too early. Our tax rates explain how much can be contributed to an approved pension scheme each year tax efficiently.
Our tax rates contain the main inheritance tax rates and exemptions but early planning can mitigate these tremendously.
These rates are intended for use as a quick point of reference. Should you require any further information, have a simple question or require detailed advice we are only a phone call away.