The point at which people will pay income tax rises to £11,850 for 2018/19 which is some £350 higher than the current year.
From April 2018, spouses and civil partners may transfer £1,185 of their personal allowance to each other. The point at which people pay higher rate tax has risen and will be £46,850 for 2018/19.
Class 2 National Insurance (£2.95 per week) continues to be collected as part of the Self Assessment process and will be abolished from 6th April 2019 – not 2018 as originally announced to allow further time to design the new process.
The reduction in the nil rate band for dividends to £2,000 (currently £5,000) will be implemented from 6th April 2018. This will result in a tax charge of an additional £225 per annum for owner managers of small companies.