|Tax bands and rates||2017/18||2016/17|
|Basic rate band||£33,500||£32,000|
|Basic rate band - Scotland||£31,500||£32,000|
|Basic tax rate||20%||20%|
|Dividend ordinary tax rate||7.5%||7.5%|
|Savings starting rate band||£5,000*||£5,000*|
|Savings starting rate - savings income||0%||0%|
|Higher rate band||£33,501 - £150,000||£32,001 - £150,000|
|Higher rate band - Scotland||£31,501 - £150,000||£32,001 - £150,000|
|Higher tax rate||40%||40%|
|Dividend upper tax rate||32.5%||32.5%|
|Additional rate band over||£150,000||£150,000|
|Additional tax rate||45%||45%|
|Dividend additional tax rate||38.1%||38.1%|
|Marriage allowance||Transferable allowance||£1,150||£1,100|
|Blind person's allowance||£2,320||£2,290|
|Married couple's allowance (MCA)||Maximum amount||£8,445||£8,355|
|Tax reduction at 10%||£844.50||£835.50|
|Applies after UK residence in 7 or
more of the previous 9 tax years
|Applies after UK residence in at least 12 of the previous 14 years||£60,000||£60,000|
|Applies after UK residence in at least 17 of the last 20 years||n/a||£90,000|
Enterprise investment scheme (EIS) up to
|Maximum amount for EIS carry back||£50,000||£50,000|
|Income tax relief rate||30%||30%|
|Seed enterprise investment scheme (SEIS)||£100,000||£100,000|
|Income tax relief||50%||50%|
|Venture capital trust (VCT)||£200,000||£200,000|
|Social investment relief||£1,000,000||£1,000,000|
|Income tax relief||30%||30%|
|VCT tax relief rate||30%||30%|
|Golden handshake maximum tax free||£30,000||£30,000|
|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%|
*Savings income falling into the first £5,000 may be taxed at 0% for certain low income earners.
**When the gross income is £1,000 or less.
2018 and beyond
An increase to the annual amount an individual can invest under the enterprise investment scheme (EIS) in knowledge-intensive companies will take effect from 6 April 2018.
Provided that anything above £1m is invested in knowledge-intensive companies, an individual can invest up to £2m in total.
A knowledge-intensive company is regarded as a smaller innovative company carrying out research and development and other activities to develop intellectual property for its own trading purposes.
Termination payments over £30,000 which are subject to income tax after April 2018 will also be subject to employers national insurance contributions.
Income tax will only be applied on the equivalent of an employee’s basic pay if the employee has not worked the notice period.