Current Tax Rates and Allowances
How much Income Tax someone pays in a year depends on a number of things, this page guides you through the Current Tax Rates and Allowances.
- 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 and can explain Current Tax Rates and Allowances!