We've outlined some key details and summarised Wednesday's Annual Budget, to help you separate the wheat from the chaff.
- The introduction from April 2017 of a new Lifetime ISA for the under 40s, with a maximum annual contribution of £4,000 and a 25% government bonus.
- An increase in the main ISA allowance to £20,000 from 2017/18.
- A rise of £400 in the personal allowance to £11,000 for 2016/17 and a further increase to £11,500 in 2017/18.
- A £615 rise in the higher rate threshold for 2016/17, to £43,000 and a £2,000 increase in 2017/18 to £45,000, clawing back part of the under-indexation of earlier years.
- A cut in the rates of capital gains tax to 20% for higher and additional rate taxpayers and 10% for other taxpayers from 2016/17. However, the current rates of 28% and 18% will continue for gains on residential property and carried interest.
The 2016 Budget update was produced by Technical Connection if you require personal advice on how the budget affects you we strongly recommend you seek Independent Financial or Tax Advice.
To read our 2016 Budget Round Up in full open the attached document.
The views and opinions contained herein are third party and may not necessarily represent views expressed or reflected by Willis Owen