New Rules Tax Year 2018/19


New Rules Tax Year 2018/19

Here is a quick summary of the changes you may like to know about for this tax year:

Personal tax allowance has increased from £11,500 to £11,800 (this is the sum you can earn before paying tax).

Higher rate tax is now payable for those earning over £46,350; rather than £45,000. This will increase to £50,000 by 2020.

Capital gain tax is now payable for profits over £11,700, rather than £11,300.

Inheritance tax individually the allowance is £325,000; married couples can pass half this to their partner on death giving them £650,000 nil-band rate. But there is now an extra allowance for direct descendants this year it will be £125,000, increasing each year.

Minimum Energy Performance standards have been introduced, meaning a rental property with a rating of less than E is breaking the law and the landlord can be fined up to £4,000.  

Council tax can be increased by up to 5.99%, adding an extra £100 to the average household bill.

Mortgage interest relief is being reduced, this year it is being reduced from 75% relief to 50% relief.