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Home Resource Centre Tax Tables Income Tax Rates

Tax Tables

Income Tax Allowances, Reliefs and Credits

 

2017/18
£

2016/17
£

Given at marginal rate of income tax

   

Personal allowance (minimum)

11,500

11,000

Blind Person's Allowance

2,320

2,290

 

   

Rent-a-room tax free home income*
*restricted to £2,125 if letting jointly

7,500

7,500

Transferable Tax Allowance for Married couples & Civil partners*

1,150

1,100

*Available to spouses/civil partners born after 5 April 1935. This allowance is 10% of the personal allowance for those born after 5 April 1938. It allows a spouse or civil partner who is not liable to income tax at the basic rate to transfer this amount of their personal allowance to their spouse/civil partner. The recipient must not be liable to tax above the basic rate. The recipient is eligible to a tax reduction of 20% the transferred amount.

 

Relief restricted to 10%

 

 

Married couples/Civil partnerships allowance (age 75+)

8,445

8,335

Married couples/Civil partnerships allowance (minimum)

3,260

3,220

Personal allowances progressively reduced £1 for £2 income above £100,000

 

 

 

Child Tax Credit (CTC)

 

 

Family element

545

545

Child element

2,780

2,780

Disabled child element

3,175

3,140

Severely disabled child element

1,290

1,275

 

 

 

Working Tax Credit (WTC)

 

 

Basic element

1,960

1,960

Couples & lone parent element

2,010

2,010

30 hour element

810

810

Disabled worker element

3,000

2,970

Severe disability element

1,290

1,275

 

 

 

Childcare Element of WTC

 

 

Maximum eligible cost for one child

£175 per week

£175 per week

Maximum eligible cost for two or more children

£300 per week

£300 per week

Percentage of eligible costs covered

70%

70%

     

Withdrawal Rates for CTC & WTC

 

 

First income threshold

6,420

6,420

First income threshold for CTC only

16,105

16,105

First withdrawal rate

41%

41%

Income increase disregarded

2,500

2,500

Income decrease disregarded

2,500

2,500

 

 

 

Universal Credit is a new single monthly payment for people in work or out of work. It will be made up of a standard allowance plus other 'elements' - for example for children, childcare, housing and caring. There will also be an element for those with limited capability for work.

If you qualify, your monthly payment will cover everyone in your family who qualifies for support. 'Family' could mean you as a single person for example, or you might also be claiming for a partner and/or children.

How will tax credits and other benefits be affected?

How will tax credits and other benefits be affected?

Universal Credit will eventually replace all of the following:

  • tax credits - both Child Tax Credit and Working Tax Credit
  • income-based Jobseeker’s Allowance
  • income-related Employment and Support Allowance
  • Income Support
  • Housing Benefit

Universal Credit won't replace Child Benefit.

Universal Credit will start in April 2013 in the Greater Manchester and Cheshire regions. It will be rolled out across the country from October 2013.

Wherever you live, you don’t need to do anything until the Tax Credit Office tells you to.

The Tax Credit Office will tell you when you can make a claim for Universal Credit, and stop claiming tax credits. You won't claim both at the same time.

It will take up to four years before all tax credits claims are stopped.

 

 

 

Limits for other reliefs

 

 

Enterprise Investment Scheme (EIS)

30%

30%

Maximum Investment

1,000,000

1,000,000

EIS capital gains re-investment

Unlimited

Unlimited

 

   

Seed Enterprise Investment Scheme (SEIS)

50%

50%

Maximum Investment

100,000

100,000

SEIS re-investment exemption

50%

50%

 

   

Venture Capital Trusts (VCT)

30%

30%

Maximum Investment

200,000

200,000

 

 

 

Social Investment Relief (SITR)

30%

30%

Maximum Investment

1,500,000

1,000,000

SITR capital gains re-investment

Unlimited

Unlimited

 

 

 


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