Policy paper

Annex A: rates and allowances

Published 8 March 2017

Annex A – rates and allowances

This annex includes Spring Budget 2017 announcements of the main rates and allowances. It also covers all announcements made at Budget 2016 and subsequently.

Personal Tax and benefits

  Tax year 2016 to 2017 Tax year 2017 to 2018
Basic rate £1 – £32,000 £1 - £33,500
Higher rate £32,001 - £150,000 £33,501 - £150,000
Additional rate Over £150,000 Over £150,000

Income Tax rates – 2016 to 2017

  Tax year 2016 to 2017
Main rates1  
Basic rate 20%
Higher rate 40%
Additional rate 45 %
Dividend rates2  
Dividend ordinary rate - for dividends otherwise taxable at the basic rate 7.5%
Dividend upper rate - for dividends otherwise taxable at the higher rate 32.5%
Dividend additional rate - for dividends otherwise taxable at the additional rate 38.1%

Income Tax rates – 2017 to 2018

  Tax year 2017 to 2018
Main rates3  
Basic rate 20%
Higher rate 40%
Additional rate 45 %
Savings rates4  
Starting rate for savings 0%
Savings basic rate 20%
Savings higher rate 40%
Savings additional rate 45%
Dividend rates5  
Dividend ordinary rate - for dividends otherwise taxable at the basic rate 7.5%
Dividend upper rate - for dividends otherwise taxable at the higher rate 32.5%
Dividend additional rate - for dividends otherwise taxable at the additional rate 38.1%
Default rates6  
Default basic rate 20%
Default higher rate 40%
Default additional rate 45%

Starting rates for savings income

  Tax year 2016 to 2017 Tax year 2017 to 2018
Starting rate for savings 0% 0%
Starting rate limit for savings £5,000 £5,000

Special rates for trustees’ income

  Tax year 2016 to 2017 Tax year 2017 to 2018
Standard rate on first £1,000 of income which would otherwise be taxable at the special rates for trustees Up to 20%, depends on the type of income Up to 20%, depends on the type of income
Trust rate 45% 45%
Dividend trust rate 38.1% 38.1%

Income Tax allowances

  Tax year 2016 to 2017 Tax year 2017 to 2018
Personal allowance    
Personal allowance7 £11,000 £11,500
Income limit for personal allowance £100,000 £100,000
Income limit for Married couple’s allowance8 £27,700 £28,000
Marriage allowance    
Marriage allowance9 £1,100 £1,150
Married couple’s allowance for those born before 6 April 1935    
Maximum amount of married couple’s allowance10 £8,355 £8,445
Minimum amount of married couple’s allowance10 £3,220 £3,260
Blind person’s allowance    
Blind person’s allowance £2,290 £2,320
Dividend allowance    
Dividend allowance11 £5,000 £5,000
Personal savings allowance    
Personal savings allowance for basic rate taxpayers12 £1,000 £1,000
Personal savings allowance for higher rate taxpayers £500 £500

Company Car Tax

2018 to 2019
C02 emissions, g/km
2018 to 2019
Appropriate percentage of car list price taxed
2019 to 2020
C02 emissions, g/km
2019 to 2020
Appropriate percentage of car list price taxed
2020 to 2021
C02 emissions, g/km
2020 to 2021
Appropriate percentage of car list price taxed
0-50 13 0-50 16 0 2
51-74 16 51-74 19 1-50 (split by zero emission miles)
130
70-129
40-69
30-39
30



2
5
8
12
14
75-94 19 75-94 22 51-54 15
95-99 20 95-99 23 55-59 16
100-104 21 100-104 24 60-64 17
105-109 22 105-109 25 65-69 18
110-114 23 110-114 26 70-74 19
115-119 24 115-119 27 75-79 20
120-124 25 120-124 28 80-84 21
125-129 26 125-129 29 85-89 22
130-134 27 130-134 30 90-94 23
135-139 28 135-139 31 95-99 24
140-144 29 140-144 32 100-104 25
145-149 30 145-149 33 105-109 26
150-154 31 150-154 34 110-114 27
155-159 32 155-159 35 115-119 28
160-164 33 160-164 36 120-124 29
165-169 34 165+ 37 125-129 30
170-174 35     130-134 31
175-179 36     135-139 32
180+ 37     140-144 33
        145-149 34
        150-154 35
        155-159 36
        160+ 37

Drivers must add 3% to their appropriate percentage if the car runs solely on diesel: up to a maximum of 35% for years up to and including 2014 to 2015; 37% from 2015 to 2016.

National Insurance contributions (NICs)

Class 1 NICs: employee and employer rates and thresholds (£ per week)

  Tax year 2016 to 2017 Tax year 2017 to 2018
Weekly Lower Earnings Limit (LEL)13 112 113
Weekly Primary Threshold (PT)13 155 157
Weekly Secondary Threshold (ST)14 156 157
Upper Earnings Limit (UEL)15 827 866
Upper Secondary Threshold for under 21s15 827 866
Apprentice Upper Secondary Threshold (AUST) for under 25s15 827 866
Employment Allowance (per employer) 3,000 per year 3,000 per year
Employee’s (primary) Class 1 contribution rates Tax year 2016 to 2017 Tax year 2017 to 2018
Earnings band16 NIC rate (%) NIC rate (%)
Below LEL 0 0
LELPT17 0 0
PT- UEL 12 12
Above UEL 2 2
Married woman’s reduced rate for (primary) Class 1 contribution rates Tax year 2016 to 2017 Tax year 2017 to 2018
Weekly earnings from between the PT and UEL 5.85 5.85
Weekly earnings above the UEL 2 2
Employer’s (secondary) Class 1 contribution rates Tax year 2016 to 2017 Tax year 2017 to 2018
Earnings band18    
Below ST 0 0
Above ST 13.8 13.8
Employer’s (secondary) Class 1 contribution rates for employees under 21 Tax year 2016 to 2017 Tax year 2017 to 2018
Earnings band19    
Below UST 0 0
Above UST 13.8 13.8
Employer’s (secondary) Class 1 contribution rates for Apprentices under 25 Tax year 2016 to 2017 Tax year 2017 to 2018
Earnings band20    
Below AUST 0 0
Above AUST 13.8 13.8

Class 2 NICs: self-employed rates and thresholds (£ per week)

  Tax year 2016 to 2017 Tax year 2017 to 2018
Small Profits Threshold (SPT)13 5,965 per year 6,025 per year
Class 2 contribution rates13 Tax year 2016 to 2017 Tax year 2017 to 2018
Annual Profits (£ a year)21 £ per week £ per week
Below SPT 0 0
Above SPT22 2.80 2.85
Special Class 2 rate for share fishermen 3.45 3.50
Special Class 2 rate for volunteer development workers 5.60 5.65

Class 3 NICs: other rates and thresholds (£ per week)

  Tax year 2016 to 2017 Tax year 2017 to 2018
Voluntary contributions1323 14.10 14.25

Class 4 NICs: self-employed rates and thresholds (£ per year)

  Tax year 2016 to 2017 Tax year 2017 to 2018
Lower Profits Limit (LPL)13 8,060 8,164
Upper Profits Limit (UPL)15 43,000 45,000
Class 4 contribution rates Tax year 2016 to 2017 Tax year 2017 to 2018
Annual profits band24 NIC rate (%) NIC rate (%)
Below LPL 0 0
LPL to UPL 9 9
Above UPL 2 2

Apprenticeship Levy

Apprenticeship Levy: rates and allowances

  Tax year 2016 to 2017 Tax year 2017 to 2018
Apprenticeship Levy allowance (per employer) N/A £15,000
Apprenticeship Levy rate N/A 0.5%

Working and Child Tax Credits, Child Benefit and Guardian’s allowance

Working Tax Credit

£ per year (unless stated) Tax year 2016 to 2017 Tax year 2017 to 2018
Basic element £1,960 £1,960
Couple and lone parent element £2,010 £2,010
30 hour element £810 £810
Disabled worker element £2,970 £3,000
Severe disability element £1,275 £1,290

Childcare element of the Working Tax Credit

£ per year (unless stated) Tax year 2016 to 2017 Tax year 2017 to 2018
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%

Child tax credit

£ per year (unless stated) Tax year 2016 to 2017 Tax year 2017 to 2018
Family element £545 £545
Child element £2,780 £2,780
Disabled child element £3,140 £3,175
Severely disabled child element £1,275 £1,290

Income thresholds and withdrawal rates

£ per year (unless stated) Tax year 2016 to 2017 Tax year 2017 to 2018
Income threshold £6,420 £6,420
Withdrawal rate (per cent) 41% 41%
First threshold for those entitled to child tax credit only £16,105 £16,105
Income rise disregard £2,500 £2,500
Income fall disregard £2,500 £2,500

Child Benefit (£ per week)

  Tax year 2016 to 2017 Tax year 2017 to 2018
Eldest/only child £20.70 £20.70
Other children £13.70 £13.70

Guardians Allowance (£ per week)

  Tax year 2016 to 2017 Tax year 2017 to 2018
Guardians allowance £16.55 £16.70

Capital, assets and property

Pensions tax relief

  Tax year 2016 to 2017 Tax year 2017 to 2018
Lifetime Allowance limit £1 million £1 million
Annual Allowance limit £40,000 £40,000
Tapered Annual Allowance (applies to income over this amount) £150,000 (including pension contributions) £150,000 (including pension contributions)
Money Purchase Annual Allowance £10,000 £4,000

Tax free savings accounts

  Tax year 2016 to 2017 Tax year 2017 to 2018
Individual Savings Account (ISA) subscription limit £15,240 £20,000
Junior ISA subscription limit £4,080 £4,128
Child Trust Fund (CTF) subscription limit £4,080 £4,128

Capital Gains Tax

  Tax year 2016 to 2017 Tax year 2017 to 2018
Main rates for individuals 10% / 20% 10% / 20%
Rates for individuals (for gains on residential property not eligible for Private Residence Relief, and carried interest) 18% / 28% 18% / 28%
Main rate for trustees and personal representatives 20% 20%
Rate for trustees and personal representatives (for gains on residential property not eligible for Private Residence Relief) 28% 28%
Annual exempt amount (AEA) for individuals and personal representatives £11,100 £11,300
AEA for most trustees £5,550 £5,650
Rate on gains subject to entrepreneurs’ relief 10% 10%
Rate on gains subject to investors’ relief 10% 10%
Entrepreneurs’ relief: lifetime limit on gains for entrepreneurs £10,000,000 £10,000,000
Investors’ relief: separate lifetime limit on gains for external investors £10,000,000 £10,000,000

Inheritance Tax

  Tax year 2016 to 2017 Tax year 2017 to 2018
Rate (for estates) 40% 40%
Reduced rate (for estates leaving 10% or more to charity) 36% 36%
Rate (for chargeable lifetime transfers) 20% 20%
Nil rate band limit £325,000 £325,000
Residence nil rate band limit N/A £100,000

Stamp Duty Land Tax – residential property

Property value Rate (on portion of value above threshold) Rate (on portion of value above threshold) on or after 1 April 2016 if purchase is of an additional residential property25
0 to £125,000 0% 3%
£125,000 to £250,000 2% 5%
£250,000 to £925,000 5% 8%
£925,000 to £1.5 million 10% 13%
£1.5 million+ 12% 15%

Stamp Duty Land Tax – non-residential property

Purchase and Premium Transactions  
Property value Rate on or after 17 March 2016 (on portion of value above threshold)
0 to £150,000 0%
£150,000 to £250,000 2%
£250,000+ 5%
Net Present Value (NPV) of the Lease Rate on or after 17 March 2016 (on portion of value above threshold)
0 to £150,000 0%
£150,000 to £5 million 1%
£5 million+ 2%

Annual Tax on Enveloped Dwellings

Property value Charge for tax year 2016 to 2017 Charge for tax year 2017 to 2018
More than £500,000 but not more than £1 million £3,500 £3,500
More than £1 million but not more than £2 million £7,000 £7,050
More than £2 million but not more than £5 million £23,350 £23,550
More than £5 million but not more than £10 million £54,450 £54,950
More than £10 million but not more than £20 million £109,050 £110,100
More than £20 million+ £218,200 £220,350

Business and financial services

Corporation Tax rates

Level of profits Financial year 2015 to 2016 Financial year 2016 to 2017 Financial year 2017 to 2018
Main rate 20% 20% 19%
North sea oil and gas ring fence profits 26 See footnote See footnote See footnote

Corporation Tax allowances and reliefs

  Financial year 2015 to 2016 Financial year 2016 to 2017 Financial year 2017 to 2018
Plant and machinery: main rate expenditure 18% 18% 18%
Plant and machinery: special rate expenditure 8% 8% 8%
Annual investment allowance (AIA) £425,00027 £200,000 £200,000
First year allowances (e.g. for certain energy-saving/water efficient products) 100% 100% 100%
R&D tax credits SME scheme 230% 230% 230%
R&D SME payable credit 14.5% 14.5% 14.5%
R&D tax credits large companies scheme 130% N/A N/A
R&D Expenditure Credit 11% 11% 11%
Patent Box28 10% 10% 10%
Film tax relief 25% 25% 25%
Open ended investment companies and authorised unit trusts29 20% 20% 20%

Bank Levy

  Chargeable equity and long-term chargeable liabilities Short-term chargeable liabilities
1 January 2016 0.09% 0.18%
1 January 2017 0.085% 0.17%
1 January 2018 0.08% 0.16%
1 January 2019 0.075% 0.15%
1 January 2020 0.07% 0.14%
1 January 2021 onwards 0.05% 0.10%

Bank Surcharge

1 January 2016 onwards 8% on profits

UK oil and gas taxes

  2016 2017
Petroleum Revenue Tax 0 0
Ring fence Corporation Tax30 30 30
Supplementary charge 10 10

Business rates

  Financial year 2016 to 2017 Financial year 2017 to 2018
England standard multiplier 49.7 47.9
England small business multiplier31 48.4 46.6

Indirect tax

Budget 2017 confirmed that Alcohol Duty rates will change as shown in the table below.

Alcohol Duty

  Duty rate from 21 March 2016 Duty rate from 13 March 2017
Rate per litre of pure alcohol    
Spirits £27.66 £28.74
Spirits-based RTDs £27.66 £28.74
Wine and made-wine: exceeding 22% alcohol by volume (abv) £27.66 £28.74
Rate per hectolitre per cent of alcohol in the beer    
Beer - lower strength: exceeding 1.2% - not exceeding 2.8% abv. £8.10 £8.42
Beer – General Beer Duty: exceeding 2.8% - not exceeding 7.5% abv. £18.37 £19.08
Beer - High strength: exceeding 7.5% - in addition to the General Beer Duty £18.37
+ £5.48
£19.08+£5.69
Rate per hectolitre of product    
Still cider and perry: exceeding 1.2% - not exceeding 7.5% abv. £38.87 £40.38
Still cider and perry: exceeding 7.5% - less than 8.5% abv. £58.75 £61.04
Sparkling cider and perry: exceeding 1.2% - not exceeding 5.5% abv. £38.87 £40.38
Sparkling cider and perry: exceeding 5.5% - less than 8.5% abv. £268.99 £279.46
Wine and made-wine: exceeding 1.2% - not exceeding 4% abv. £85.60 £88.93
Wine and made-wine: exceeding 4% - not exceeding 5.5% abv. £117.72 £122.30
Still wine and made-wine: exceeding 5.5% - not exceeding 15% abv. £277.84 £288.65
Wine and made-wine: exceeding 15% - not exceeding 22% abv. £370.41 £384.82
Sparkling wine and made-wine: exceeding 5.5% - less than 8.5% abv. £268.99 £279.46
Sparkling wine and made-wine: at least 8.5% - not exceeding 15% abv. £355.87 £369.72

Budget 2017 announced that duty rates for all tobacco products will be increased by 2% above retail price index (RPI) inflation, from 6pm on 8 March 2017. This is in accordance with the Budget 2014 announcement that all Tobacco Duty rates will increase by this rate each year until the end of the current Parliament.

Tobacco products

  From 6pm 16 March 2016 Ad valorem element From 6pm 8 March 2017 Ad valorem element From 00:01am 20 May 2017 Minimum Excise Tax
Cigarettes £196.42 per 1000 cigarettes 16.5% of retail price £207.99 per 1000 cigarettes 16.5% of retail price An amount equal to the higher of the following alternatives
either
£207.99 per 1000 cigarettes
plus
16.5% of retail price
An amount equal to the higher of the following alternatives
or
£268.63 per 1000 cigarettes
Cigars £245.01/kg N/A £259.44/kg N/A £259.44/kg N/A
Hand rolling tobacco £198.10/kg N/A £209.77/kg N/A £209.77/kg N/A
Other smoking tobacco and chewing tobacco £107.71/kg N/A £114.06/kg N/A £114.06/kg N/A

Gambling duties

  Tax year 2016 to 2017 Tax year 2017 to 2018
Bingo Duty    
Percentage of bingo promotion profits 10% 10%
General Betting Duty    
Percentage of ‘net stake receipts’ for fixed odds bets and totalisator bets on horse or dog races 15% 15%
Percentage of ‘net stake receipts’ for financial spread bets 3% 3%
Percentage of ‘net stake receipts’ for all other spread bets 10% 10%
Pool Betting Duty    
Percentage of net pool betting receipts 15% 15%
Lottery Duty    
Percentage of the price paid or payable on taking a ticket or chance in a lottery 12% 12%
Remote Gaming Duty    
Percentage of remote gaming profits 15% 15%
Machine Games Duty    
Percentage of the net takings from dutiable machine games with a maximum cost to play not more than 20p and a maximum cash prize not more than £10 (Type 1 machines) 5% 5%
Percentage of net takings from machines which are not Type 1 machines but where the cost to play cannot exceed £5 20% 20%
Percentage of net takings from dutiable machine games where the maximum cost to play can exceed £5 25% 25%

Gaming Duty 2016 to 2017

Tax rate 15% 20% 30% 40% 50%
Gross gaming yield £2,370,500 £1,634,000 £2,861,500 £6,040,000 Remainder
Figures for accounting periods beginning on or after 1 April 2017          
Tax rate 15% 20% 30% 40% 50%
Gross gaming yield £2,423,500 £1,670,500 £2,925,500 £6,175,500 Remainder

Insurance Premium Tax

  Tax year 2016 to 2017 Tax year 2017 to 2018
Standard rate 9.5%
10% (from 1 October 2016)
10%
12% (from 1 June 2017)
Higher rate 20% 20%

Budget 2016 announced that the main rates of Climate Change Levy (CCL) will increase in line with RPI in 2017 to 2018 and 2018 to 2019.

Budget 2016 also announced above RPI increases in 2019 to 2020, with rebalancing of the rates and changes to the reduced rates payable by businesses in the Climate Change Agreement scheme.

The main and reduced rates of CCL across the period will be as follows.

Climate Change Levy main rates

Taxable commodity Rate from 1 April 2017 Rate from 1 April 2018 Rate from 1 April 2019
Electricity (£ per kilowatt hour) 0.00568 0.00583 0.00847
Natural gas (£ per kilowatt hour) 0.00198 0.00203 0.00339
Liquefied petroleum gas (£ per kilogram) 0.01272 0.01304 0.02175
Any other taxable commodity (£ per kilogram) 0.01551 0.01591 0.02653

Climate Change Levy reduced rates

Taxable commodity Rate from 1 April 2017 Rate from 1 April 2018 Rate from 1 April 2019
Electricity 10% 10% 7%
Natural gas 35% 35% 22%
Liquefied petroleum gas 35% 35% 22%
Any other taxable commodity 35% 35% 22%

Budget 2014 announced that the carbon price support (CPS) rate per tonne of carbon dioxide (tCO2) would be capped at a maximum of £18 from 2016 to 2017 until 2019 to 2020, capping the CPS rates for each of the individual taxable commodities across this period at around 2015 to 2016 levels.

Budget 2016 confirmed the unchanged commodity rates for 2018 to 2019 and the unchanged commodity rates for 2019 to 2020. It also announced the £18 per tonne of CO2 cap will be uprated in line with RPI for 2020 to 2021. The indicative rates for 2020 to 2021 have been announced in line with this.

The confirmed and indicative rates across the period will be as follows.

CPS rates of CCL and fuel duty

  Capped rate from 1 April 2016 until 31 March 2020 Indicative rate from 1 April 2020 to 31 March 202132
Carbon price equivalent (£ per tonne of carbon dioxide) 18.00 18.57
Supplies of commodity used in electricity generation    
Natural gas (£ per kilowatt hour) 0.00331 0.00342
LPG (£ per kilogram) 0.05280 0.05447
Coal and other taxable solid fossil fuels (£ per gross gigajoule) 1.54790 1.58490
Gas oil; rebated bio blend; and kerosene (£ per litre) 0.04916 0.05054
Fuel oil; other heavy oil and rebated light oil (£ per litre) 0.05711 0.05874

Budget 2016 announced that the rate of Aggregates Levy would remain at £2 per tonne in 2016 to 2017. Budget 2017 announced that the rate of Aggregates Levy will remain at £2 per tonne in 2017 to 2018.

Aggregates Levy

  Rate from 1 April 2016 Rate from 1 April 2017
Commercially exploited taxable aggregate £2 per tonne £2 per tonne

Budget 2016 announced that both the standard and lower rates of Landfill Tax would rise in line with RPI in 2017 to 2018 and 2018 to 2019.

Landfill Tax

Waste sent to landfill Rate from 1 April 2017 Rate from 1 April 2018
Standard rated (per tonne) £86.10 £88.95
Lower rated (per tonne) £2.70 £2.80

Air Passenger Duty rates (APD) for 2016 to 2017 were set out at Budget 2015. The APD rates for 2017 to 2018 and 2018 to 2019 are set out below.

Air Passenger Duty rates 33 34 35

Bands
(approximate distance in miles from London)
Reduced rate
(lowest class of travel)
Standard rate36
(other than the lowest class of travel)
Higher rate37
Band A
(0 – 2,000 miles)
From 1 April 2016
£13
From 1 April 2017
£13
From 1 April 2018
£13
From 1 April 2016
£26
From 1 April 2017
£26
From 1 April 2018
£26
From 1 April 2016
£78
From 1 April 2017
£78
From 1 April 2018
£78
Band B
(over 2,000 miles)
From 1 April 2016
£73
From 1 April 2017
£75
From 1 April 2018
£78
From 1 April 2016
£146
From 1 April 2017
£150
From 1 April 2018
£156
From 1 April 2016
£438
From 1 April 2017
£450
From 1 April 2018
£468

Fuel duty – pound per litre unless stated

  Rates on and after 6pm on 23 March 2011
Light oils  
Unleaded petrol 0.5795
Light oil (other than unleaded petrol or aviation gasoline) 0.6767
Aviation gasoline (Avgas) 0.3770
Light oil delivered to an approved person for use as furnace fuel 0.1070
Heavy oils  
Heavy oil (diesel) 0.5795
Marked gas oil 0.1114
Fuel oil 0.1070
Heavy oil other than fuel oil, gas oil or kerosene used as fuel 0.1070
Kerosene to be used as motor fuel off road or in an excepted vehicle 0.1114
Biofuels  
Bio-ethanol 0.5795
Bio-diesel 0.5795
Bio-diesel for non-road use 0.1114
Bio-diesel blended with gas oil not for road fuel use 0.1114
Road fuel gases  
Liquefied petroleum gas (£ per kilogram) 0.3161
Road fuel natural gas including biogas (£ per kilogram) 0.2470
Other fuel Rate on and after 1 October 2016
Aqua-methanol set aside for road use 0.07900

The changes to Vehicle Excise Duty (VED) rates to take effect from 1 April 2017 are set out in the tables below:

VED bands and rates for cars first registered on or after 1 April 2017

Tax year 2017 to 2018    
C02 emissions (g/km) Standard rate38 First year rate
0 £0 £0
1-50 £140 £10
51-75 £140 £25
76-90 £140 £100
91-100 £140 £120
101-110 £140 £140
111-130 £140 £160
131-150 £140 £200
151-170 £140 £500
171-190 £140 £800
191-225 £140 £1200
226-255 £140 £1700
Over 255 £140 £2000

VED bands and rates for cars registered on or after 1 March 2001 but before 1 April 2017

VED band CO2 emissions (g/km) 2016 to 2017
Standard rate
2016 to 2017
First year rate
2017 to 2018
Standard rate
2017 to 2018
First year rate39
A Up to 100 £0 £0 £0 N/A
B 101-110 £20 £0 £20 N/A
C 111-120 £30 £0 £30 N/A
D 121-130 £110 £0 £115 N/A
E 131-140 £130 £130 £135 N/A
F 141-150 £145 £145 £150 N/A
G 151-165 £185 £185 £190 N/A
H 166-175 £210 £300 £220 N/A
I 176-185 £230 £355 £240 N/A
J 186-200 £270 £500 £280 N/A
K40 201-225 £295 £650 £305 N/A
L 226-255 £500 £885 £520 N/A
M Over 255 £515 £1,120 £535 N/A

VED bands and rates for cars and vans registered before 1 March 2001

Engine size 2016 to 2017 2017 to 2018
1549cc and below £145 £150
Above 1549cc £235 £245

VED bands and rates for vans registered on or after 1 March 2001

Vehicle registration date 2016 to 2017 2017 to 2018
Early Euro 4 and Euro 5 compliant vans £140 £140
All other vans £230 £240

VED bands and rates for motorcycles

Engine size 2016 to 2017 2017 to 2018
Not over 150cc £17 £18
151cc and 400cc £39 £41
401cc to 600c £60 £62
Over 600cc £82 £85

VED bands and rates for motor tricycles

Engine size 2016 to 2017 2017 to 2018
Not over 150cc £17 £18
All other tricycles £82 £85

VED bands and rates for trade licences

Vehicle type 2016 to 2017 2017 to 2018
Available for all vehicles £165 £165
Available only for bicycles and tricycles (weighing no more than 450kg without a sidecar) £82 £85

The following VED and HGV road user levy rates will apply to HGVs of 12 tonnes or more, from 1 April 2017. The band and rate payable can be calculated by using the look-up tables that follow the rates tables.

VED and levy bands and rates for articulated vehicles and rigid vehicles without trailers

VED band (letter and rate number) Total VED and levy
12 months
Total VED and levy
6 months
VED rates
12 months
VED rates
6 months
Levy bands Levy rates
12 months
Levy rates
6 months
A0 £165 £90.75 £165 £90.75 N/A £0 £0
B0 £200 £110 £200 £110 N/A £0 £0
A1 £165 £91 £80 £40 A £85 £51
A2 £169 £93 £84 £42 A £85 £51
A3 £185 £101 £100 £50 A £85 £51
A4 £231 £124 £146 £73 A £85 £51
A5 £236 £126.50 £151 £75.50 A £85 £51
B1 £200 £110.50 £95 £47.50 B £105 £63
B2 £210 £115.50 £105 £52.50 B £105 £63
B3 £230 £125.50 £125 £62.50 B £105 £63
C1 £450 £249 £210 £105 C £240 £144
C2 £505 £276.50 £265 £132.50 C £240 £144
C3 £529 £288.50 £289 £144.50 C £240 £144
D1 £650 £360 £300 £150 D £350 £210
E1 £1,200 £664 £560 £280 E £640 £384
E2 £1,249 £688.50 £609 £304.50 E £640 £384
F £1,500 £831 £690 £345 F £810 £486
G £1,850 £1,025 £850 £425 G £1,000 £600

VED and levy amounts payable for rigid vehicles with trailers (vehicles with Road Friendly Suspension)

HGV axles Levy band Trailer weight category Total weight of HGV and trailer, not over VED band
(letter) and rate (number)
VED rates
12 months
VED rates
6 months
Levy rates
12 months
Levy rates
6 months
2 B(T) 4,0001 – 12,000kg 27,000kg B(T)1 £230 £115 £135 £81
2 B(T) Over 12,000kg 33,000kg
36,000kg
38,000kg
40,000kg
B(T)3
B(T)6
B(T)4
B(T)7
£295
£401
£319
£444
£147.50
£200.50
£159.50
£222
£135
£135
£135
£135
£81
£81
£81
£81
2 D(T) 4,0001 – 12,000kg 30,000kg D(T)1 £365 £182.50 £450 £270
2 D(T) Over 12,000kg 38,000kg
40,000kg
D(T)4
D(T)5
£430
£444
£215
£222
£450
£450
£270
£270
3 B(T) 4,001 – 12,000kg 33,000kg B(T)1 £230 £115 £135 £81
3 B(T) Over 12,000kg 38,000kg
40,000kg
44,000kg
B(T)3
B(T)5
B(T)3
£295
£392
£295
£147.50
£196
£147.50
£135
£135
£135
£81
£81
£81
3 C(T) 4,001 – 12,000kg 35,000kg C(T)1 £305 £152.50 £310 £186
3 C(T) Over 12,000kg 38,000kg
40,000kg
44,000kg
C(T)2
C(T)3
C(T)2
£370
£392
£370
£185
£196
£185
£310
£310
£310
£186
£186
£186
3 D(T) 4,001 – 10,000kg 33,000kg
36,000kg
D(T)1
D(T)3
£365
£401
£182.50
£200.50
£450
450
£270
£270
3 D(T) 10,001 – 12,000kg 38,000kg D(T)1 £365 £182.50 £450 £270
3 D(T) Over 12,000kg 44,000kg D(T)4 £430 £215 £450 £270
4 B(T) 4,001-12,000kg 35,000kg B(T)1 £230 £115 £135 £81
4 B(T) Over 12,000kg 44,000kg B(T)3 £295 £147.50 £135 £81
4 C(T) 4,001-12,000kg 37,000kg C(T)1 £305 £152.50 £310 £186
4 C(T) Over 12,000kg 44,000kg C(T)2 £370 £185 £310 £186
4 D(T) 4,001-12,000kg 39,000kg D(T)1 £365 £182.50 £450 £270
4 D(T) Over 12,000kg 44,000kg D(T)4 £430 £215 £450 £270
4 E(T) 4,001-12,000kg 44,000kg E(T)1 £535 £267.50 £830 £498
4 E(T) Over 12,000kg 44,000kg E(T)2 £600 £300 £830 £498

VED and levy amounts payable for rigid vehicles with trailers (vehicles without Road Friendly Suspension)

HGV axles Levy band Trailer weight category Total weight of HGV and trailer, not over VED band
(letter) and rate (number)
VED rates
12 months
VED rates
6 months
Levy rates
12 months
Levy rates
6 months
2 B(T) 4,001-12,000kg 27,000kg B(T)1 £230 £115 £135 £81
2 B(T) Over 12,000kg 31,000kg
33,000kg
36,000kg
38,000kg
40,000kg
B(T)3
B(T)6
B(T)10
B(T)7
B(T)9
£295
£401
£609
£444
£604
£147.50
£200.50
£304.50
£222
£302
£135
£135
£135
£135
£135
£81
£81
£81
£81
£81
2 D(T) 4,001-12,000kg 30,000kg D(T)1 £365 £182.50 £450 £270
2 D(T) Over 12,000kg 33,000kg
36,000kg
38,000kg
40,000kg
D(T)4
D(T)8
D(T)5
D(T)7
£430
£609
£444
£604
£215
£304.50
£222
£302
£450
£450
£450
£450
£270
£270
£270
£270
3 B(T) 4,001-10,000kg 29,000kg
31,000kg
B(T)1
B(T)2
£230
£289
£115
£144.50
£135
£135
£81
£81
3 B(T) 10,001-12,000kg 33,000kg B(T)1 £230 £115 £135 £81
3 B(T) Over 12,000kg 36,000kg
38,000kg
40,000kg
B(T)3
B(T)5
B(T)8
£295
£392
£542
£147.50
£196
£271
£135
£135
£135
£81
£81
£81
3 C(T) 4,001-10,000kg 31,000kg
33,000kg
C(T)1
C(T)4
£305
£401
£152.50
£200.50
£310
£310
£186
£186
3 C(T) 10,001-12,000kg 35,000kg C(T)1 £305 £152.50 £310 £186
3 C(T) Over 12,000kg 36,000kg
38,000kg
40,000kg
C(T)2
C(T)3
C(T)5
£370
£392
£542
£185
£196
£271
£310
£310
£310
£186
£186
£186
3 D(T) 4,001-12,000kg 31,000kg
33,000kg
35,000kg
D(T)1
D(T)3
D(T)8
£365
£401
£609
£182.50
£200.50
£304.50
£450
£450
£450
£270
£270
£270
3 D(T) 10,001-12,000kg 36,000kg
37,000kg
D(T)1
D(T)2
£365
£392
£182.50
£196
£450
£450
£270
£270
3 D(T) Over 12,000kg 38,000kg
40,000kg
D(T)4
D(T)6
£430
£542
£215
£271
£450
£450
£270
£270
4 B(T) 4,001-12,000kg 35,000kg B(T)1 £230 £115 £135 £81
4 B(T) Over 12,000kg 40,000kg B(T)3 £295 £147.50 £135 £81
4 C(T) 4,001-12,000kg 37,000kg C(T)1 £305 £152.50 £310 £186
4 C(T) Over 12,000kg 40,000kg C(T)2 £370 £185 £310 £186
4 D(T) 4,001-10,000kg 36,000kg
37,000kg
D(T)1
D(T)5
£365
£444
£182.50
£222
£450
£450
£270
£270
4 D(T) 10,001 – 12,000kg 39,000kg D(T)1 £365 £182.50 £450 £270
4 D(T) Over 12,000kg 40,000kg D(T)4 £430 £215 £450 £270
4 E(T) 4,001-10,000kg 38,000kg
40,000kg
E(T)1
E(T)3
£535
£604
£267.50
£302
£830
£830
£498
£498
4 E(T) 10,001 – 12,000kg 40,000kg E(T)1 £535 £267.50 £830 £498

The band and rate payable can be calculated by using the following look-up tables. Note that in all the tables below the letter indicates the VED and levy band the vehicle is in, and the number indicates the rate that is payable as part of that band (for example B2 would refer to VED and levy band B, and rate 2 as determined by the weight and axle configuration of the vehicle). For vehicles with trailers, the rate paid depends on whether the vehicle has road-friendly suspension. There are separate tables for with and without road-friendly suspension.

Rigid goods vehicle - without trailer

Revenue weight of vehicle, kg
Over
Revenue weight of vehicle, kg
Not over
2 axles 3 axles 4 or more axles
3,500 7,500 A0 A0 A0
7,500 11,999 B0 B0 B0
11,999 14,000 B1 B1 B1
14,000 15,000 B2 B1 B1
15,000 19,000 D1 B1 B1
19,000 21,000 D1 B3 B1
21,000 23,000 D1 C1 B1
23,000 25,000 D1 D1 C1
25,000 27,000 D1 D1 D1
27,000 44,000 D1 D1 E1

Rigid vehicles - with trailer

Revenue weight of vehicle, kg
Over
Revenue weight of vehicle, kg
Not over
2-axled rigid 3-axled rigid 4-axled rigid
11,999 15,000 B(T) B(T) B(T)
15,000 21,000 D(T) B(T) B(T)
21,000 23,000 E(T) C(T) B(T)
23,000 25,000 E(T) D(T) C(T)
25,000 27,000 E(T) D(T) D(T)
27,000 44,000 E(T) E(T) E(T)

Articulated vehicles – tractive unit with 3 or more axles

Revenue weight of vehicle, kg
Over
Revenue weight of vehicle, kg
Not over
One or more semi-trailer axles 2 or more semi-trailer axles 3 or more semi-trailer axles
3,500 11,999 A0 A0 A0
11,999 25,000 A1 A1 A1
25,000 26,000 A3 A1 A1
26,000 28,000 A4 A1 A1
28,000 29,000 C1 A1 A1
29,000 31,000 C3 A1 A1
31,000 33,000 E1 C1 A1
33,000 34,000 E2 D1 A1
34,000 36,000 E2 D1 C1
36,000 38,000 F E1 D1
38,000 44,000 G G E1

Articulated vehicles – tractive unit with 2 axles

Revenue weight of vehicle, kg
Over
Revenue weight of vehicle, kg
Not over
One or more semi-trailer axles 2 or more semi-trailer axles 3 or more semi-trailer axles
3,500 11,999 A0 A0 A0
11,999 22,000 A1 A1 A1
22,000 23,000 A2 A1 A1
23,000 25,000 A5 A1 A1
25,000 26,000 C2 A3 A1
26,000 28,000 C2 A4 A1
28,000 31,000 D1 D1 A1
31,000 33,000 E1 E1 C1
33,000 34,000 E1 E2 C1
34,000 38,000 F F E1
38,000 44,000 G G G

VAT

  April 2016 to 2017 April 2017 to 2018
Standard rate 20% 20%
Reduced rate 5% 5%
Zero rate 0% 0%
Exempt N/A N/A

VAT registration and deregistration thresholds

  From April 2016 From April 2017
VAT registration thresholds £83,000 [£85,000]
VAT deregistration threshold £81,000 [£83,000]
  1. Apply to non-dividend income, including income from savings, employment, property or pensions. From 2017 to 2018, the main rates will be separated into the main rates, the savings rates and the default rates.

  2. Apply to dividend income received above the tax-free Dividend Allowance, introduced in April 2016 to replace the Dividend Tax Credit.

  3. Apply to non-savings, non-dividend income, including income from employment, property or pensions not subject to the Scottish Rate of Income Tax.

  4. Apply to savings income.

  5. Apply to dividend income received above the tax-free Dividend Allowance, introduced in April 2016 to replace the previous Dividend Tax Credit.

  6. Apply to non-savings and non-dividend income of any taxpayer that is not subject to either the main rates or the Scottish Rates of Income Tax.

  7. The Personal Allowance reduces where the income is above £100,000 – by £1 for every £2 of income above the £100,000 limit. This reduction applies irrespective of date of birth.

  8. This age-related allowance is reduced by £1 for every £2 of income over this limit.

  9. This transferable allowance is available to married couples and civil partners who are not in receipt of married couple’s allowance. A spouse or civil partner who is not liable to income tax; or not liable at the higher or additional rates, can transfer this amount of their unused personal allowance to their spouse or civil partner. The recipient must not be liable to Income Tax at the higher or additional rates.

  10. The relief for this allowance is given at 10%. 2

  11. From April 2016, the Dividend Allowance means that individuals will not have to pay tax on the first £5,000 of dividend income they receive. From April 2018, the dividend allowance will be reduced to £2,000.

  12. From April 2016, the new Personal Savings Allowance means that basic rate taxpayers will not have to pay tax on the first £1,000 of savings income they receive and higher rate taxpayers will not have tax to pay on their first £500 of savings income.

  13. Uprated by CPI. 2 3 4 5 6

  14. Autumn Statement 2016 announced that the Secondary Threshold would be aligned with the Primary Threshold. From April 2018 onwards, it will be uprated in line with CPI.

  15. These thresholds are uprated in line with the Higher Rate Threshold to maintain alignment between the Upper Earnings Limit, Upper Profits Limit and Higher Rate Threshold. 2 3 4

  16. The limits are defined as LEL - Lower Earnings Limit; PT - Primary Threshold; and UEL - Upper Earnings Limit.

  17. No National Insurance contributions (NICs) are actually payable but a notional Class 1 NIC is deemed to have been paid in respect of earnings between the LEL and PT to protect contributory benefit entitlement.

  18. The limit is defined as ST –Secondary Threshold

  19. The limit is defined as UST – Upper Secondary Threshold

  20. The limit is defined as AUST – Apprentice Upper Secondary Threshold

  21. The Limit is defined as SPT – Small Profits Threshold

  22. Class 2 NICs are liable to be paid by all self-employed persons with profits above the Small Profits Threshold (SPT). The self-employed may choose to pay Class 2 if their profits are below the SPT.

  23. Class 3 NICs can be paid by contributors to make the year a qualifying year for the basic State Pension (new State Pension from 6 April 2016).

  24. These limits are defined as LPL – Lower Profits Limit; and UPL – Upper Profits Limit.

  25. See HMRC guidance note on whether the higher rate applies.

  26. For North Sea Oil and gas ring fence profits the main rate is 30% and the small profits rate is 19%. The marginal relief ring fence fraction is 11/400ths.

  27. Financial year 2015 to 2016 encompasses two AIA periods. The £425,000 is calculated as 9 months at £500,000 and 3 months at £200,000.

  28. The Patent Box has been phased in from April 2013, with companies being able to claim 60% of the benefit in 2013 to 2014, 70% in 2014 to 2015, 80% in 2015 to 2016, 90% in 2016 to 2017 and 100% in 2017 to 2018.

  29. For open ended investment companies and authorised unit trusts the applicable corporation tax rate is equal to the basic rate of Income Tax.

  30. For North Sea oil and gas ring fence profits the main rate is 30% and the small profits rate is 19%. The marginal relief ring fence fraction is 11/400ths.

  31. Small business multiplier applies to properties with a rateable value of less than £18,000 (or £25,500 in London). ). From April 2017 the small business multiplier will apply to all properties with a rateable value of less than £51,000.

  32. May change depending on inflation rates when legislated.

  33. APD applies to all flights aboard aircraft 5.7 tonnes and above.

  34. Rates for direct long-haul flights from Northern Ireland are devolved and set at £0. Direct long haul journeys are those where the first leg of the journey is to a destination outside Band A.

  35. Rates from April 2018 are for England and Wales only

  36. Where a class of travel provides a seat pitch in excess of 1.016 metres (40 inches), the standard rate is the minimum rate that applies.

  37. The higher rate applies to flights on aircraft of 20 tonnes and above, with fewer than 19 seats.

  38. Cars with a list price of over £40,000 when new pay an additional rate of £310 per year on top of the standard rate, for 5 years.

  39. From 2017 to 2018 there is no first year rate under the current graduated VED system because the new VED system is coming into effect.

  40. Includes cars emitting over 225g/km registered before 23 March 2006.