UK Taxes 2018-2019

  • Corporation Tax
    • 19%, which is one of the lowest in Europe; by 2020 it is planned to decrease to 17%
  • Value Added Tax (VAT)
    • 20%, the registration is required if VAT taxable turnover goes over £85,000 (the ‘threshold’), or you know that it will. VAT taxable turnover is the total of everything sold that is not VAT exempt.
  • Tax on Dividends
    • The tax-free dividend allowance is £2,000. Basic-rate taxpayers pay (up to £36,500) – 7.5%. Higher-rate taxpayers pay (up to £150,000) 32.5% on dividends. Additional-rate taxpayers pay (over £150,000) 38.1% on dividends.
  • Income Tax
    • The tax-free income allowance is 11,850. Basic-rate taxpayers pay (up to £46,350) – 20%. Higher-rate taxpayers pay (up to £150,000) 40% on income. Additional-rate taxpayers pay (over £150,000) 45%.
  • State Social Insurance Contributions and Pension Fund Contributions
    • Social insurance contributions are mandatory for employee income above the tax-free minimum of £ 702 per month and are withheld at 12% of the employee’s income and 13.8% of the employer’s income. Payments to pension funds are also compulsory starting from 5% at the choice of both parties
  • Capital Gain Tax
    • Amounts exceeding £ 11,700 (including £ 5,850 for trusts) are taxed at the following rates: 28% – on rental income from real estate; 20% – on income from other assets
  • Inheritance Tax
    • The basic rate is 40% of the market value of the inherited real estate or assets in excess of £ 325,000

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