Allowances and Changes in 2018/2019

With the end of the tax year looming it gives us the opportunity to outline the different allowances for pensions, ISAs and other important information that individuals may need to be made aware.

Please ensure that where possible you or your clients fully utilise any unused allowances before the end of the tax year.

6th April 2017 to 5th April 20186th April 2018 to 5th April 2019
Annual Allowance£40,000£40,000
Money purchase Annual Allowance£4,000£4,000
Lifetime Allowance£1,000,000£1,030,000
Basic State Pension (per week)£122.30£125.95
Basic Flat Rate State Pension£159.55£164.35
Adult ISA subscriptions£20,000£20,000
Junior ISA subscriptions£4,128£4,260
Lifetime ISA subscriptions£4,000£4,000
UK Personal Allowance£11,500£11,850
Scottish Personal Allowance*£11,500£11,850
Capital Gains Threshold£11,300£11,700
Personal Savings AllowanceBasic – £1,000
Higher – £500
Additional – £0
Basic – £1,000
Higher – £500
Additional – £0
Dividend Allowance£5,000£2,000
Inheritance Tax nil rate band£325,000£325,000
Additional residence nil rate band£100,000£125,000

*for full Scottish tax bands please see our blog titled Scottish Income Tax 2018/2019.

One rule which is to change with effect from 6th April 2018 relates to the death benefits for ISAs, also known as additional permitted subscriptions (APS). APS was introduced in April 2015 in respect of deaths that occurred on or after 30th December 2014 that when an individual dies the value of their ISA, at date of death, is added to the spouse’s own subscription limit. The disadvantage was that any gains made to the ISA after date of death would be liable to tax.

With effect from 6th April 2018, this changes and the ISA of the deceased will remain in a tax free wrapper until probate has been granted instead of date of death.

By Richard Cropley | March 26, 2018 | 0 Comments

Leave a Comment

Make an Appointment

Hartley Pensions can not give Financial Advice but our technical team can provide support to your Financial Adviser.  We can arrange for a qualified adviser to speak to you if you require advice.

Contact Us