Our Guide To The Tax Year 2017/18
At the start of a new tax year, it can be difficult to stay up-to-date with the latest changes. With this in mind, we have created an in-depth guide, that highlights the key tax rates and allowances for 2017/18.
Changes to the ISA Limit
In the Spring Budget 2016, George Osborne announced the ISA allowance would increase from April 2017. The ISA allowance has now increased from £15,250 to £20,000.
The amount that can be earned before paying income tax has increased from £11,000 to £11,500. The change will mean around 20 million basic rate taxpayers will take home an extra £100 a year.
The threshold for higher–rate earners has also increased to £45,000. However, for those in Scotland the Personal Allowance is frozen at £43,000.
Other changes to personal allowance include: the Blind Person’s Allowance has increased to £2,320 from £2,290, and the Marriage Allowance has increased to £1,150.
Lifetime ISA Launch
The new Lifetime ISA is now available to UK residents aged between 18-40. The money saved can be used to buy a first home (worth up to £450,000) or withdrawn tax free after the age of 60. The Lifetime ISA allows you to save £4,000 a year and receive 25% top-up from the government.
Capital Gains Tax
The tax-free allowance for Capital Gains Tax has increased to £11,300. However, the charges will remain the same.
The new tax year has seen changes to the Basic State Pension and the New State Pension. The basic State Pension has increased 2.5%, to £122.30 a week, an extra £156 over the year. The new State Pension has also increased 2.5% from £155.60 to £159.55 a week, providing pensioners an extra £200 over the year.
Download Our Tax Year Guide