Goodier Smith and Watts

Devonshire House
Manor Way, Borehamwood
Hertfordshire, WD6 1QQ

Search News


Autumn Budget 2018 – Income Tax Rates & Allowances

Source: HM Revenue & Customs | | 30/10/2018

The Chancellor has confirmed that from 2019-20 the personal allowance will increase to £12,500 (an increase from the current £11,850 allowance) and the basic rate limit to £37,500. As a result, the higher rate threshold will increase to £50,000 from April 2019.

These increases deliver on the government’s manifesto commitment to increase the basic personal allowance to £12,500 and the higher rate threshold to £50,000 by the end of the current Parliament a year ahead of schedule. The Chancellor also set the personal allowance at £12,500 and basic rate limit at £37,500 for 2020-21 and confirmed that from 2021-22 onwards, the personal allowance and basic rate limit will be indexed with the Consumer Price Index (CPI).

The changes to the basic rate limit will apply to non-savings and non-dividend income in England, Wales and Northern Ireland and to savings and dividend income in the UK. Since April 2017, the Scottish Parliament sets the basic rate and higher rate thresholds for non-savings and non-dividend income in Scotland.

For high earning taxpayers the personal allowance is gradually withdrawn by £1 for every £2 of adjusted net income over £100,000 irrespective of age. Adjusted net income is total taxable income before any personal allowances, less certain tax reliefs such as trading losses and certain charitable donations and pension contributions. Any taxpayers with an adjusted net income of between £100,000 and £125,000 in 2019-20 will pay an effective marginal rate of tax of around 60% as the tax-free personal allowance is gradually withdrawn.



 

Latest News

Auto-enrolment qualifying earnings band figures for tax year 2019/20 confirmed
21/01/2019 - More...
The draft Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band) Order 2019 has now been published. As

Statutory payment rates for tax year 2019/20 confirmed
21/01/2019 - More...
Following the written ministerial statement published in November 2018 announcing the proposed new rates for Statutory

EU Settlement Scheme fee is to be scrapped
21/01/2019 - More...
The Prime Minister has announced in a speech to the House of Commons that the £65 fee for applications made by EU

Newsletter

With our newsletter, you automatically receive our latest news per e-mail and get access to the archive including advanced search options!

» Sign up for the Newsletter
» Login

 

 

ICAEW-BLK RGB  

 

Save

Save

Copyright © 2018 - Goodier, Smith and Watts

Cookie Policy | Website Privacy Policy                                                                                                                                                                                                                                                         

Registered in England under the number 3724657