Autumn Budget 2017 Reaction: Tax Rates and Allowances

Chancellor Philip Hammond delivered his second Budget of 2017 to Parliament this afternoon. We have created a video and a series of short blogs on various tax and business related Budget announcements to help clarify some of the details behind the headlines.

 

Tax Rates and Allowances

 

Income tax rates and allowances for the 2018-19 tax year are confirmed as:

£
Personal allowance 11,850
Dividend allowance 2,000
Higher rate threshold 46,350
Income limit for personal allowance withdrawal 100,000
Additional rate threshold 150,000
Basic rate 20%
Higher rate 40%
Additional rate 45%
Dividend – Basic rate 7.5%
Dividend – Higher rate 32.5%
Dividend – Additional rate 38.1%

 

 

The capital gains tax (‘CGT’) annual exemption will rise to £11,700 p.a. from April 2018.

 

No changes announced to CGT or inheritance tax (‘IHT’) rates and the IHT nil rate band remains frozen at £325,000 per individual.