This Budget
looked as if it would be a difficult one for the Chancellor, faced as he was
with disappointing economic numbers and the need to avoid ruffling feathers
ahead of June’s in/out referendum. What was to have been the big announcement –
reform of pensions – was kicked into the long grass a few weeks ago.
Nevertheless, Mr Osborne did spring a few surprises, including some tax
reductions.
How will
this Budget affect you? If you are – or want to be – a saver, then there is
plenty to consider. From April 2017 a new ISA, the Lifetime ISA, will be
launched for the under-40s. It looks as if it is a close relation of the
recently abandoned pensions ISA. Also from 2017/18, the normal ISA contribution
limit – unchanged for 2016/17 – will rise to £20,000.
Capital
gains tax (CGT) rates will fall from 2016/17 to 20% and 10%, although the
current rates of 28% and 18% will continue to apply to residential property
(another buy-to-let attack) and carried interests. There will be a new
entrepreneurs’ relief (effectively 10% CGT) for external long term investors in
unlisted companies.
Other
important changes for included:
· Increases in the personal allowance for
2017/18 to £11,500 and the higher rate threshold to £45,000.
· A restructuring of stamp duty land tax (SDLT)
on commercial properties.
· A major revamp of business rates, permanently
doubling the Small Business Rate Relief.
If you would
like to discuss any of the issues raised in the Spring Budget please do not
hesitate to contact the team at Ward Williams Financial Services Ltd on 01932 830664 or
by email on wwfs@wardwilliams.co.uk.
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