This budget looked as though it would have been a difficult one for the Chancellor given the challenging global economic figures and considerations ahead of June’s EU referendum. The widely expected announcement about pensions reform was kicked into the long grass a few weeks ago. Nevertheless, Mr Osborne did spring a few surprises, most notably tax incentives.
How might this budget affect you? Well, if you are a saver, there is plenty to consider. The Government will introduce a new form of ISA (Lifetime ISA – LISA) in April 2017 for people between the ages of 18 and 40. Details on the account can be found here. The annual ISA allowance is also set to increase from £15,240 to £20,000, as of April 2017.
The tax incurred on capital gains (CGT) will fall from 18% and 28% to 10% and 20% for basic-rate taxpayers and higher-rate taxpayers, respectively, in April 2016. However, the current rates will still apply to gains made on buy-to-let properties. There will be an extension to entrepreneurs’ relief (effectively 10% CGT) to now include certain unlisted company shares.
For a more detailed summary please refer to our Budget Summary and if you have any questions, or would like to discuss any of the changes, please contact us.