Tax Rates

Tax bands and rates 2019/20 2018/19
Basic-rate band £37,500 £34,500
Basic-rate tax 20% 20%
Dividend ordinary tax rate 7.5% 7.5%
Savings starting rate band limit* £5,000 £5,000
Savings starting rate - savings income 0% 0%
Higher-rate band Over £37,500 - £150,000 Over £34,500 - £150,000
Higher-rate tax 40% 40%
Dividend upper tax rate 32.5% 32.5%
Additional-rate band over Above £150,000 Above £150,000
Additional-rate tax 45% 45%
Dividend additional tax rate 38.1% 38.1%
Personal allowance** £12,500 £11,850
High income child benefit charge - 1% of adjusted net income of £50,000 to £60,000
Trading allowance*** £1,000 £1,000
Dividend allowance at 0% - all individuals £2,000 £2,000
Property allowance*** £1,000 £1,000
Savings allowance**** £1,000 £1,000
Marriage allowance £1,250 £1,190
Blind person's allowance £2,450 £2,390
Married couple's allowance (if at least one born before 6 April 1935) Maximum amount £8,915 £8,695
Tax reduction at 10% £891.50 £869.50
Minimum amount £3,450 £3,360
Tax reduction £345 £336

Rent-a-room (exempt on gross annual rent up to) £7,500 £7,500
Construction industry scheme - deduction rate    
Standard rate - registered 20% 20%
Higher rate - not registered 30% 30%
Child benefit charge - 1% of benefit per £100 of income between £50,000 and £60,000

* Savings income falling into the first £5,000 may be taxed at 0% for certain low income earners.

** Personal allowance reduced by £1 for every £2 of adjusted net income over £100,000.

*** When the gross income is £1,000 or less. May alternatively be deducted from gross income instead of the actual expenses.

**** £500 for higher-rate and £0 for additional-rate taxpayers.

Corporation tax

Corporation tax rates and bands are as follows:

Financial year to 31 March 2020 31 March 2019
Taxable profits - main rate 19%  19% 
Corporation tax on outstanding loans to participators 32.5%   32.5% 
Diverted profits 25%  25% 

For small and medium-sized companies corporation tax is payable 9 months after the end of the accounting period.

National Insurance contributions an rates 2019/20

Weekly earnings Employee Employer
Up to £166 nil* nil*
From £166.01 to £962 12% 13.8% 
 Over £962  2% 13.8% 
 Over state pension age 0% 13.8% 

*0% for employees under 21 and apprentices under 25 on earnings up to £892 a week.*0% for employees under-21 and apprentices under-25 on earnings up to £962 a week.

Employment allowance

An employer can claim employment allowance of £3,000. Only one claim may be made by the employer and any connected employers. Not available if the only paid employee is a director.

*Entitlement to contribution-based benefits retained for earnings between £118 and £166 per week

**The rate is 0% in relation to employees under 21 and apprentices under 25 on earnings up to £962 per week

Apprenticeship levy

Levy-paying employers can create an account on the apprenticeship service in order to spend levy funds on apprenticeships, manage their apprentices and manage payments to training providers.

Employers are entitled to an annual levy allowance of £15,000 to set against this levy.

They can sue one-twelfth of the levy per tax month on a cumulative basis, unused levy allowance can be carried forward and used in a later month within the same year.

*Shared between connected companies - allocated as the companies choose before the start of the tax year.


  1. For children under 16, and employees over state pension age there are no national insurance contributions payable, but employers' contributions remain payable in respect of employees over state pension age.
Capital Gains Tax

Capital gains tax rates and allowances for 2019/2020 tax year.

You need to pay capital gains tax (CGT) when you profit from selling valuable assets such as shares, cryptocurrencies, art, or property.  The rates areas follows:

  • 10% (18% for residential property) for your entire capital gains profit if your overall annual income is below £50,000
  • 20% (28% for residential property) for your entire capital gains profit if your overall annual income is above the £50,000 threshold

Individuals have an £12,000 capital gains tax allowance. This means your capital gains up to £12,000 are tax free.  Normally you don’t have to pay any capital tax on selling your main home.

Capital gains tax rates

Type of asset Basic rate Higher rate
Shares 10% 20%
Residential Property 18% 28%

Capital Gains Tax free allowance

Allowance for Annual exempt amount
Individuals £12,000
Trusts £6,000

Inheritance tax







Individual nil-rate band



A reduced rate of inheritance tax will apply where at least 10% of the net estate is left to charity.  Any unused inheritance  tax nil-rate band is transferable to a spouse or civil partner.

Value Added Tax (VAT)

Registration threshold £85,000.





Standard rate



Individual savings accounts (ISAs)

ISA maximum limits




Cash, Stock and shares (overall limit)



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