Budget 2016 – A Summary
The budget saw some good news for savers and investors as well as a reduction in capital gains tax, amongst other things.
The main news was perhaps the raising of the ISA limit to £20,000 with effect from April 2017. In addition, a new Lifetime ISA is to be introduced in April 2017 for those under 40. They will receive a £1 top up from the government for every £4 they save, up to a limit of £4,000. This will be part of the total ISA allowance of £20,000.
Capital gains tax on investments has also been cut. From 06 April 2016, the higher rate has been cut from 28% to 20%, and the basic rate cut from 18% to 10%.
As per the recent media coverage, any planned changes to pensions tax relief did not materialise, so saving into a pension is still a very attractive proposition, particularly with employer contributions as well.
Below is a copy of the Kellands Budget 2016 Summary for you to download.
Some of the key announcements in this Budget could well have a bearing on your current and future financial plans. To review what action you may need to take to keep your plans on track, please contact Kellands Bristol.