K P Bonney & Co.
Chartered Accountants and Chartered Tax Advisers



Tax rates and tables

Tax Data 2017/2018

Contents
Income tax bands and rates
Allowances that Reduce Taxable Income
Allowances that Reduce Tax
Mileage Allowances
Vehicle Benefits
National Insurance Contributions
Corporation Tax
Capital Allowances
Value Added Tax
Capital Gains Tax
Inheritance Tax
Key Dates and Deadlines

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Income tax bands and rates


 

2017/18

2016/17

Starting rate band

up to 5,000

up to 5,000

Non-savings income tax rate

20%

20%

Savings income tax rate - only applicable where taxable non-savings income is under 5,000

0%

0%

Basic rate band

5,001 - 33,500

5,001 - 32,000

Non-savings income tax rate

20%

20%

Savings income tax rate

20%

20%

UK dividend income tax rate

7.5%

7.5%

Higher rate band

33,501 - 150,000

32,001 - 150,000

UK dividend income tax rate

32.5%

32.5%

All other income tax rate

40%

40%

Additional rate band

over 150,000

over 150,000

UK dividend income tax rate

38.1%

38.1%

All other income tax rate

45%

45%



The personal allowance is withdrawn at the rate of 1 for every 2 by which income exceeds 100,000. This means that the effective rate of tax on income between 100,000 and 123,000 is 60%.

Basic rate taxpayers can receive 1,000 of savings income completely free of tax. This is in addition to the 0% starting rate which applies to any savings income falling within the starting rate band (see above).

Higher rate taxpayers can receive 500 of savings income completely free of tax.

Additional rate taxpayers receive no such allowance.

All taxpayers can receive 5,000 of dividend income free of tax. Although such dividends are tax free they still count as income so they can have an impact on the withdrawal of personal allowances (see above) and the high income child benefit charge (see below).

If an individual, not living in a relationship, receives child benefit and has income of more than 50,000, there is made a charge to income tax equal to 1% of the amount of benefit received for every 100 of income between 50,000 and 60,000.
If an individual lives in a relationship and one of the members of that relationship receives child benefit and if one of the members of that relationship has income of more than 50,000, there is made a charge to income tax equal to 1% of the amount of benefit received for every 100 of income between 50,000 and 60,000. The charge is payable by the member having the higher income.

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Allowances that Reduce Taxable Income

 

2017/18

2016/17

Personal allowance

11,500

11,000

Marriage allowance

1,150

1,100



The marriage allowance is that part of the personal allowance which a taxpayer is unable to use owing to an insufficiency of income. It can be transferred to a partner who is a basic rate taxpayer. The maximum tax saving achieved by making an election to transfer the allowance is 230 (220 - 2016/17).

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Allowances that Reduce Tax

Married Couple's Allowance

 

2017/18

2016/17

Married couple's allowance

844.50

835.50


The married couple's allowance is available only if at least one of the couple was born before 6 April 1935.
The age related allowance is progressively withdrawn from individuals with income exceeding 28,000 (only the husband's income is considered). The married couple's tax reduction cannot fall below 326.00


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Mileage Allowances


Under the statutory scheme, the maximum tax free mileage allowances for employees using their own transport for business journeys are as follows:

 

First 10,000 miles

Miles over 10,000

Car / van

45p

25p

Motorcycle

24p

24p

Bicycle

20p

20p



If an employer pays a mileage rate higher than the statutory rate the employee is chargeable to income tax on the excess.
If an employer pays a mileage rate lower than the statutory rate the employee can claim tax relief on the shortfall.




The statutory rate includes a fuel element. VAT registered businesses can reclaim VAT at the rate of 1/6th based on the fuel element. They must produce sufficient fuel VAT receipts to support the amount of VAT reclaimed.

Car - Advisory fuel rates effective from 1 September 2017

Engine capacity

Petrol

Diesel

Gas

Up to 1400cc

11.00p gross, 1.83p VAT, 9.17p net

9.00p gross, 1.50p VAT, 7.50p net

7.00p gross, 1.17p VAT, 5.83p net

1401 - 1600cc

13.00p gross, 2.17p VAT, 10.83p net

9.00p gross, 1.50p VAT 7.50p net

8.00p gross, 1.33p VAT 6.67p net

1601 - 2000cc

13.00p gross, 2.17p VAT, 10.83p net

11.00p gross, 1.83p VAT, 9.17p net

8.00p gross, 1.50p VAT, 6.67p net

Over 2000cc

21.00p gross, 3.50p VAT, 17.50p net

12.00p gross, 2.00p VAT, 10.00p net

13.00p gross, 2.17p VAT, 10.83p net



The above rates replace the ones which were introduced on 1 June 2017. These rates were as follows:

Car - Advisory fuel rates effective from 1 June 2017

Engine capacity

Petrol

Diesel

Gas

Up to 1400cc

11.00p gross, 1.83p VAT, 9.17p net

9.00p gross, 1.50p VAT, 7.50p net

7.00p gross, 1.17p VAT, 5.83p net

1401 - 1600cc

14.00p gross, 2.33p VAT, 11.67p net

9.00p gross, 1.50p VAT 7.50p net

9.00p gross, 1.50p VAT 7.50p net

1601 - 2000cc

14.00p gross, 2.33p VAT, 11.67p net

11.00p gross, 1.83p VAT, 9.17p net

9.00p gross, 1.50p VAT, 7.50p net

Over 2000cc

21.00p gross, 3.50p VAT, 17.50p net

13.00p gross, 2.17p VAT, 10.83p net

14.00p gross, 2.33p VAT, 11.67p net



The above rates replace the ones which were introduced on 1 March 2017. These rates were as follows:

Car - Advisory fuel rates effective from 1 March 2017

Engine capacity

Petrol

Diesel

Gas

Up to 1400cc

11.00p gross, 1.83p VAT, 9.17p net

9.00p gross, 1.50p VAT, 7.50p net

7.00p gross, 1.17p VAT, 5.83p net

1401 - 1600cc

14.00p gross, 2.33p VAT, 11.67p net

9.00p gross, 1.50p VAT 7.50p net

9.00p gross, 1.50p VAT 7.50p net

1601 - 2000cc

14.00p gross, 2.33p VAT, 11.67p net

11.00p gross, 1.83p VAT, 9.17p net

9.00p gross, 1.50p VAT, 7.50p net

Over 2000cc

22.00p gross, 3.67p VAT, 18.33p net

13.00p gross, 2.17p VAT, 10.83p net

14.00p gross, 2.33p VAT, 11.67p net



The above rates replace the ones which were introduced on 1 December 2016. These rates were as follows:

Car - Advisory fuel rates effective from 1 December 2016

Engine capacity

Petrol

Diesel

Gas

Up to 1400cc

11.00p gross, 1.83p VAT, 9.17p net

9.00p gross, 1.50p VAT, 7.50p net

7.00p gross, 1.17p VAT, 5.83p net

1401 - 1600cc

14.00p gross, 2.33p VAT, 11.67p net

9.00p gross, 1.50p VAT 7.50p net

9.00p gross, 1.50p VAT 7.50p net

1601 - 2000cc

14.00p gross, 2.33p VAT, 11.67p net

11.00p gross, 1.83p VAT, 9.17p net

9.00p gross, 1.50p VAT, 7.50p net

Over 2000cc

21.00p gross, 3.50p VAT, 17.50p net

13.00p gross, 2.17p VAT, 10.83p net

13.00p gross, 2.17p VAT, 10.83p net



The above rates replace the ones which were introduced on 1 September 2016. These rates were as follows:

Car - Advisory fuel rates effective from 1 September 2016

Engine capacity

Petrol

Diesel

Gas

Up to 1400cc

11.00p gross, 1.83p VAT, 9.17p net

9.00p gross, 1.50p VAT, 7.50p net

7.00p gross, 1.17p VAT, 5.83p net

1401 - 1600cc

13.00p gross, 2.17p VAT, 10.83p net

9.00p gross, 1.50p VAT 7.50p net

9.00p gross, 1.50p VAT 7.50p net

1601 - 2000cc

13.00p gross, 2.17p VAT, 10.83p net

11.00p gross, 1.83p VAT, 9.17p net

9.00p gross, 1.50p VAT, 7.50p net

Over 2000cc

20.00p gross, 3.33p VAT, 16.67p net

13.00p gross, 2.17p VAT, 10.83p net

13.00p gross, 2.17p VAT, 10.83p net



The above rates replace the ones which were introduced on 1 June 2016. These rates were as follows:

Car - Advisory fuel rates effective from 1 June 2016

Engine capacity

Petrol

Diesel

Gas

Up to 1400cc

10.00p gross, 1.67p VAT, 8.33p net

9.00p gross, 1.50p VAT, 7.50p net

7.00p gross, 1.17p VAT, 5.83p net

1401 - 1600cc

13.00p gross, 2.17p VAT, 10.83p net

9.00p gross, 1.50p VAT 7.50p net

9.00p gross, 1.50p VAT 7.50p net

1601 - 2000cc

13.00p gross, 2.17p VAT, 10.83p net

10.00p gross, 1.67p VAT, 8.33p net

9.00p gross, 1.50p VAT, 7.50p net

Over 2000cc

20.00p gross, 3.33p VAT, 16.67p net

12.00p gross, 2.00p VAT, 10.00p net

13.00p gross, 2.17p VAT, 10.83p net



The above rates replace the ones which were introduced on 1 March 2016. These rates were as follows:

Car - Advisory fuel rates effective from 1 March 2016

Engine capacity

Petrol

Diesel

Gas

Up to 1400cc

10.00p gross, 1.67p VAT, 8.33p net

8.00p gross, 1.33p VAT, 6.67p net

7.00p gross, 1.17p VAT, 5.83p net

1401 - 1600cc

12.00p gross, 2.00p VAT, 10.00p net

8.00p gross, 1.33p VAT 6.67p net

8.00p gross, 1.33p VAT 6.67p net

1601 - 2000cc

12.00p gross, 2.00p VAT, 10.00p net

10.00p gross, 1.67p VAT, 8.33p net

8.00p gross, 1.33p VAT, 6.67p net

Over 2000cc

19.00p gross, 3.17p VAT, 15.83p net

11.00p gross, 1.83p VAT, 9.17p net

13.00p gross, 2.17p VAT, 10.83p net



The above rates replace the ones which were introduced on 1 December 2015. These rates were as follows:

Car - Advisory fuel rates effective from 1 December 2015

Engine capacity

Petrol

Diesel

Gas

Up to 1400cc

11.00p gross, 1.83p VAT, 9.17p net

9.00p gross, 1.50p VAT, 7.50p net

7.00p gross, 1.17p VAT, 5.83p net

1401 - 1600cc

13.00p gross, 2.17p VAT, 10.83p net

9.00p gross, 1.50p VAT 7.50p net

9.00p gross, 1.50p VAT 7.50p net

1601 - 2000cc

13.00p gross, 2.17p VAT, 10.83p net

11.00p gross, 1.83p VAT, 9.17p net

9.00p gross, 1.50p VAT, 7.50p net

Over 2000cc

20.00p gross, 3.33p VAT, 16.67p net

13.00p gross, 2.17p VAT, 10.83p net

13.00p gross, 2.17p VAT, 10.83p net



The above rates replace the ones which were introduced on 1 September 2015. These rates were as follows:

Car - Advisory fuel rates effective from 1 September 2015

Engine capacity

Petrol

Diesel

Gas

Up to 1400cc

11.00p gross, 1.83p VAT, 9.17p net

9.00p gross, 1.50p VAT, 7.50p net

7.00p gross, 1.17p VAT, 5.83p net

1401 - 1600cc

14.00p gross, 2.33p VAT, 11.67p net

9.00p gross, 1.50p VAT 7.50p net

9.00p gross, 1.50p VAT 7.50p net

1601 - 2000cc

14.00p gross, 2.33p VAT, 11.67p net

11.00p gross, 1.83p VAT, 9.17p net

9.00p gross, 1.50p VAT, 7.50p net

Over 2000cc

21.00p gross, 3.50p VAT, 17.50p net

13.00p gross, 2.17p VAT, 10.83p net

14.00p gross, 2.33p VAT, 11.67p net



The above rates replace the ones which were introduced on 1 June 2015. These rates were as follows:

Car - Advisory fuel rates effective from 1 June 2015

Engine capacity

Petrol

Diesel

Gas

Up to 1400cc

12p gross, 2.00p VAT, 10.00p net

10p gross, 1.67p VAT, 8.33p net

8p gross, 1.33p VAT, 6.67p net

1401 - 1600cc

14p gross, 2.33p VAT, 11.67p net

10p gross, 1.67p VAT 8.33p net

9p gross, 1.50p VAT 7.50p net

1601 - 2000cc

14p gross, 2.33p VAT, 11.67p net

12p gross, 2.00p VAT, 10.00p net

9p gross, 1.50p VAT, 7.50p net

Over 2000cc

21p gross, 3.50p VAT, 17.50p net

14p gross, 2.33p VAT, 11.67p net

14p gross, 2.33p VAT, 11.67p net



The above rates replace the ones which were introduced on 1 March 2015. These rates were as follows:

Car - Advisory fuel rates effective from 1 March 2015

Engine capacity

Petrol

Diesel

Gas

Up to 1400cc

11p gross, 1.83p VAT, 9.17p net

9p gross, 1.50p VAT, 7.50p net

8p gross, 1.33p VAT, 6.67p net

1401 - 1600cc

13p gross, 2.17p VAT, 10.83p net

9p gross, 1.50p VAT 7.50p net

10p gross, 1.67p VAT 8.33p net

1601 - 2000cc

13p gross, 2.17p VAT, 10.83p net

11p gross, 1.83p VAT, 9.17p net

10p gross, 1.67p VAT, 8.33p net

Over 2000cc

20p gross, 3.33p VAT, 16.67p net

14p gross, 2.33p VAT, 11.67p net

14p gross, 2.33p VAT, 11.67p net



The above rates replace the ones which were introduced on 1 December 2014. These rates were as follows:

Car - Advisory fuel rates effective from 1 December 2014

Engine capacity

Petrol

Diesel

Gas

Up to 1400cc

13p gross, 2.17p VAT, 10.83p net

11p gross, 1.83p VAT, 9.17p net

9p gross, 1.50p VAT, 7.50p net

1401 - 1600cc

16p gross, 2.67p VAT, 13.33p net

11p gross, 1.83p VAT 9.17p net

11p gross, 1.83p VAT 9.17p net

1601 - 2000cc

16p gross, 2.67p VAT, 13.33p net

13p gross, 2.17p VAT, 10.83p net

11p gross, 1.83p VAT, 9.17p net

Over 2000cc

23p gross, 3.83p VAT, 19.17p net

16p gross, 2.67p VAT, 13.33p net

16p gross, 2.67p VAT, 13.33p net



The above rates replace the ones which were introduced on 1 September 2014. These rates were as follows:

Car - Advisory fuel rates effective from 1 September 2014

Engine capacity

Petrol

Diesel

Gas

Up to 1400cc

14p gross, 2.33p VAT, 11.67p net

11p gross, 1.83p VAT, 9.17p net

9p gross, 1.50p VAT, 7.50p net

1401 - 1600cc

16p gross, 2.67p VAT, 13.33p net

11p gross, 1.83p VAT 9.17p net

11p gross, 1.83p VAT 9.17p net

1601 - 2000cc

16p gross, 2.67p VAT, 13.33p net

13p gross, 2.17p VAT, 10.83p net

11p gross, 1.83p VAT, 9.17p net

Over 2000cc

24p gross, 4.00p VAT, 20.00p net

17p gross, 2.83p VAT, 14.17p net

16p gross, 2.67p VAT, 13.33p net



The above rates replace the ones which were introduced on 1 December 2013. These rates were as follows:

Car - Advisory fuel rates effective from 1 December 2013

Engine capacity

Petrol

Diesel

Gas

Up to 1400cc

14p gross, 2.33p VAT, 11.67p net

12p gross, 2.00p VAT, 10.00p net

9p gross, 1.50p VAT, 7.50p net

1401 - 1600cc

16p gross, 2.67p VAT, 13.33p net

12p gross, 2.00p VAT 10.00p net

11p gross, 1.83p VAT 9.17p net

1601 - 2000cc

16p gross, 2.67p VAT, 13.33p net

14p gross, 2.33p VAT, 11.67p net

11p gross, 1.83p VAT, 9.17p net

Over 2000cc

24p gross, 4.00p VAT, 20.00p net

17p gross, 2.83p VAT, 14.17p net

16p gross, 2.67p VAT, 13.33p net



The above rates replace the ones which were introduced on 1 September 2013. These rates were as follows:

Car - Advisory fuel rates effective from 1 September 2013

Engine capacity

Petrol

Diesel

Gas

Up to 1400cc

15p gross, 2.5p VAT, 12.5p net

12p gross, 2.00p VAT, 10.00p net

10p gross, 1.67p VAT, 8.33p net

1401 - 1600cc

18p gross, 3p VAT, 15p net

12p gross, 2.00p VAT 10.00p net

11p gross, 1.83p VAT 9.17p net

1601 - 2000cc

18p gross, 3p VAT, 15p net

15p gross, 2.5p VAT, 12.5p net

11p gross, 1.83p VAT, 9.17p net

Over 2000cc

26p gross, 4.33p VAT, 21.67p net

18p gross, 3p VAT, 15p net

16p gross, 2.67p VAT, 13.33p net



The above rates replace the ones which were introduced on 1 March 2013. These rates were as follows:

Car - Advisory fuel rates effective from 1 March 2013

Engine capacity

Petrol

Diesel

Gas

Up to 1400cc

15p gross, 2.5p VAT, 12.5p net

13p gross, 2.17p VAT, 10.83p net

10p gross, 1.67p VAT, 8.33p net

1401 - 1600cc

18p gross, 3p VAT, 15p net

13p gross, 2.17p VAT 10.83p net

12p gross, 2p VAT 10p net

1601 - 2000cc

18p gross, 3p VAT, 15p net

15p gross, 2.5p VAT, 12.5p net

12p gross, 2p VAT, 10p net

Over 2000cc

26p gross, 4.33p VAT, 21.67p net

18p gross, 3p VAT, 15p net

18p gross, 3p VAT, 15p net



The above rates replace the ones which were introduced on 1 December 2011. These rates were as follows:

Car - Advisory fuel rates effective from 1 December 2011

Engine capacity

Petrol

Diesel

Gas

Up to 1400cc

15p gross, 2.5p VAT, 12.5p net

12p gross, 2p VAT, 10p net

10p gross, 1.67p VAT, 8.33p net

1401 - 1600cc

18p gross, 3p VAT, 15p net

12p gross, 2p VAT 10p net

12p gross, 2p VAT 10p net

1601 - 2000cc

18p gross, 3p VAT, 15p net

15p gross, 2.5p VAT, 12.5p net

12p gross, 2p VAT, 10p net

Over 2000cc

26p gross, 4.33p VAT, 21.67p net

18p gross, 3p VAT, 15p net

18p gross, 3p VAT, 15p net




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Vehicle Benefits



Cars

Tax is charged on a percentage of the price of the car.
The price of the car for this purpose is the manufacturer's list price plus the cost of any accessories.
The relevant percentage is determined by the carbon dioxide emissions of the car measured in grams per kilometer (g/km).



CO2 emissions g/km Petrol Diesel CO2 emissions g/km Petrol Diesel
Up to 509%12%150 - 15429%32%
51 - 7513%16%155 - 15930%33%
76 - 8917%20%160 - 16431%34%
90 - 9417%20%165 - 16932%35%
95 - 9918%21%170 - 17433%36%
100 - 10419%22%175 - 17934%37%
105 - 10920%23%180 - 18435%37%
110 - 11421%24%185 - 18936%37%
115 - 11922%25%190 - 19437%37%
120 - 12423%26%195 - 19937%37%
125 - 12924%27%200 - 20437%37%
130 - 13425%28%205 - 20937%37%
135 - 13926%29%210 - 21437%37%
140 - 14427%30%215 - 21937%37%
145 - 14928%31%220 and above37%37%


Car Fuel

The benefit is 22,600 multiplied by the CO2 emissions percentage of the car. See cars above.



Van Benefit (including fuel)

The taxable benefit for the unrestricted use of company vans is 3,230. There is a further 610 taxable benefit if the employer provides fuel for private travel.

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