On Wednesday the Chancellor, George Osbourne, delivered his eighth budget. There were several key points that offer beneficial financial planning outcomes. Those of most relevance include:
- An increase in the tax allowance for both Basic Rate and Higher Rate Taxpayers from April 2017.
- An increase in the ISA limit from April 2017 to £20,000.
- For the under 40s there will be a new Lifetime ISA, allowing younger people to save for their first home and/or their retirement. For every £4 saved the Government will contribute £1. This will be available in April 2017.
- A cut in Capital Gains Tax from April 2016.
- A cut in Corporation Tax to be progressively reduced to 17% by 2020.
- Class 2 National Insurance to be scrapped from 2018.
- Entrepreneurs’ Relief to be extended to long term unconnected investors.
We've produced a helpful summary of the main points that could affect you. You can access this by clicking the link below.
We hope you find this of interest. If you wish to discuss how the budget may affect you or any aspect of your financial planning needs please do not hesitate to contact us.