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 rates[footnote 1]
Basic rate	20%
Higher rate	40%
Additional rate	45 %
Dividend rates[footnote 2]
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 rates[footnote 3]
Basic rate	20%
Higher rate	40%
Additional rate	45 %
Savings rates[footnote 4]
Starting rate for savings	0%
Savings basic rate	20%
Savings higher rate	40%
Savings additional rate	45%
Dividend rates[footnote 5]
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 rates[footnote 6]
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 allowance[footnote 7]	£11,000	£11,500
Income limit for personal allowance	£100,000	£100,000
Income limit for Married couple’s allowance[footnote 8]	£27,700	£28,000
Marriage allowance
Marriage allowance[footnote 9]	£1,100	£1,150
Married couple’s allowance for those born before 6 April 1935
Maximum amount of married couple’s allowance[footnote 10]	£8,355	£8,445
Minimum amount of married couple’s allowance[footnote 10]	£3,220	£3,260
Blind person’s allowance
Blind person’s allowance	£2,290	£2,320
Dividend allowance
Dividend allowance[footnote 11]	£5,000	£5,000
Personal savings allowance
Personal savings allowance for basic rate taxpayers[footnote 12]	£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)[footnote 13]	112	113
Weekly Primary Threshold (PT)[footnote 13]	155	157
Weekly Secondary Threshold (ST)[footnote 14]	156	157
Upper Earnings Limit (UEL)[footnote 15]	827	866
Upper Secondary Threshold for under 21s[footnote 15]	827	866
Apprentice Upper Secondary Threshold (AUST) for under 25s[footnote 15]	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 band[footnote 16]	NIC rate (%)	NIC rate (%)
Below LEL	0	0
LEL – PT[footnote 17]	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 band[footnote 18]
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 band[footnote 19]
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 band[footnote 20]
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)[footnote 13]	5,965 per year	6,025 per year
Class 2 contribution rates[footnote 13]	Tax year 2016 to 2017	Tax year 2017 to 2018
Annual Profits (£ a year)[footnote 21]	£ per week	£ per week
Below SPT	0	0
Above SPT[footnote 22]	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 contributions[footnote 13][footnote 23]	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)[footnote 13]	8,060	8,164
Upper Profits Limit (UPL)[footnote 15]	43,000	45,000
Class 4 contribution rates	Tax year 2016 to 2017	Tax year 2017 to 2018
Annual profits band[footnote 24]	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 property[footnote 25]
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 [footnote 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)	£425,000[footnote 27]	£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 Box[footnote 28]	10%	10%	10%
Film tax relief	25%	25%	25%
Open ended investment companies and authorised unit trusts[footnote 29]	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 Tax[footnote 30]	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 multiplier[footnote 31]	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 2021[footnote 32]
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 ^{[footnote 33] [footnote 34] [footnote 35]}

Bands (approximate distance in miles from London)	Reduced rate (lowest class of travel)	Standard rate[footnote 36] (other than the lowest class of travel)	Higher rate[footnote 37]
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 rate[footnote 38]	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 rate[footnote 39]
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
K[footnote 40]	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. ↩