Autumn Budget 2017:
23rd November 2017
Autumn Budget 2017:
Key Points for Savers & Investors
Lifetime Allowance (LTA)
The pension lifetime allowance will have an inflation linked increase as planned from 6 April 2018. This increases the LTA to £1,030,000 from the current limit of £1,000,000.
There are no changes to the pension funding limits, i.e. the annual allowance remains at £40,000 and will not be tapered until adjusted income exceeds £150,000.
SAVINGS & INVESTMENTS
Individual Savings Accounts (ISAs)
Annual ISA limits will remain at £20,000 per person. The annual subscription limit for Junior ISAs and Child Trust Funds for 2018-19 will be uprated in line with CPI to £4,260.
Enterprise Investment Schemes (EIS)
Currently, an individual can invest up to £1million in any tax year in an EIS, receiving income tax relief at 30%. This maximum limit will rise to £2million in any tax year, provided the surplus over £1 million is invested in knowledge-intensive companies.
INHERITANCE TAX (IHT)
As anticipated, the IHT nil rate band will remain at £325,000 and is expected to stay at this level until April 2021. The Residence Nil Rate Band (RNRB) will increase from £100,000 to £125,000 from April 2018.
With effect from 22 November 2017, there will be no Stamp Duty Land Tax for first-time buyers on properties valued up to £300,000. For a first-time buyer purchasing a home valued between £300,001 and £500,000, no tax will be levied against the first £300,000 with the remainder being subject to tax at 5%. For properties worth more than £500,000 there is no relief and Stamp Duty will apply at the standard rate. This applies only to first-time buyers purchasing a property for their main residence.
TAX RATES & ALLOWANCES
The personal allowance will rise to £11,850 for the 2018/19 tax year and the higher rate threshold will increase to £46,350.
The Dividend Allowance will be cut to £2,000 in April 2018, as previously announced.
The Capital Gains Tax allowance will increase to £11,700 for individuals for the 2018/19 tax year.
There were no significant tax or pension changes announced this time around and this summary includes a reminder of changes announced in March that are due to take effect from April 2018.
If you would like to discuss your current financial planning arrangements to make sure you are maximising the opportunities now available to you, please do not hesitate to contact us.