Good news for those funding pension schemes no changes to allowances that had already been announced. Tax relief stays as is. Pension commencement lump sums remain (tax free cash).
The other good news comes in form of increased NISA allowances from 2017 and the new lifetime ISA for the under 40’s which could be good for inter generational planning.
Here’s a more detailed look but as always just contact Graham or Gillian if you have any specific areas you want to discuss.
– The Annual ISA limit is to rise from £15,000 to £20,000
– A new “Lifetime” ISA for under 40’s will allow people to save up to £4,000 p/a. For every £4 saved, you will receive a £1 government bonus
– The Money Advice service (active since 2010) is to be abolished
– Capital Gains Tax is to be reduced from 27% to 20% and from 18% to 10% for basic-rate tax payers
– There will be a 0.5% rise in insurance premium tax
– The Tax Free Personal Allowance will increase to £11,500 from April 2017
– Higher income tax threshold (40% tax payers) will increase from £42,385 to £45,000 from April 2017
– Class 2 NIC’s will be abolished, which is said to tax cuts of £130 to 3 million self-employed workers from 2018
– Growth forecasts gave been revised down for the next 5 years (2%, down from 2.4% from the last budget)
– The UK still forecast to grow faster than any other major Western economy
– Inflation is forecast to be 0.7% for 2016 and rise to 1.6% in 2017
– GDP is predicted to grow 2.2% and 2.1% in 2017 and 2018 (down from forecasts 4 months ago)
– Corporation tax is to reduce to 17% (from 20%) by 2020
– The Annual threshold for small business tax relief is to increase from £6,000 to £15,000 (maximum)
– Commercial Stamp duty will have a new 0% rate on purchases of up to £15,000 / 2% on the next £100,000 / a 5% top rate on commercial property purchases of about £250,000 (this is effective as of midnight tonight – 16/03/2016)
Other updates include a new sugar tax on soft drinks, with a levy on levels of sugar in sweetened drinks to be introduced in 2 years time. The money from this will be spent on doubling the funding for sport in Primary Schools. There are plans for all schools in England to become Academies by 2022. Fuel duty is to be frozen at 57.95p per litre, with duty on tobacco to rise by 2% above inflation.