Income tax changes
The personal allowance has increased to £11,850 across the UK, and the higher rate threshold is increasing to £46,350 for England, Wales and Northern Ireland.
In Scotland, 5 income tax bands now apply with 2 new thresholds. The personal allowance is the same but the first £2,000 earned after that is taxed at 19% rather than 20% in the rest of the UK.
Scots pay 20% tax until earnings hit £24,000, at which point it rises to 21%. Above £43,431 the rate is 41%.
Both Scotland and the rest of the UK have an additional rate above £150,000 – the only difference being that in Scotland it’s taxed at 46%, compared to 45% elsewhere in the UK.
Inheritance tax changes
The residence nil-rate band (RNRB) has risen from £100,000 to £125,000.
The RNRB enables eligible people to pass on a property to direct descendants and potentially save on death duties.
Capital gains tax changes
Capital gains tax allowance has increased to £11,700.
Changes were also made to the indexation allowance that is used to calculate capital gains tax, so that any assets bought after 1 January 2018 will not have any indexation allowance associated with them.
Dividends allowance changes
The tax-free allowance on dividends has reduced from £5,000 to £2,000.
Junior ISA limit changes
The Junior ISA limit has risen from £4,128 to £4,260. For adult ISAs, the allowance remains the same at £20,000.