The last Spring Budget for now

08 March 2017

Wednesday 08 March 2017 saw the delivery of the last Spring Budget, for now anyway, by the new Chancellor, Phillip Hammond MP, at lunchtime.

As with most institutions, the Government is stuck between a rock and a hard place when it comes to money, so this year's Spring Budget was never likely to set the world alight. That was the case this time around and we may see more gritty content being considered in the new Autumn Statement 2017 once Article 50 has been triggered and a small element of the Brexit 'fog' begins to lift. There are certainly no guarantees on this point.

For some, the announcements this week may make little difference. Indeed, greater concern may be paid to the increase in inflation, as costs are likely to rise and this may mean that the pounds noted on your payslip or pension/savings income may not go as far as they did last year.

We have looked at the headlines a stage further to see what the various announcements could mean to you and your personal finance.

These are:

  • The income tax personal allowance will rise to £11,500 gross in the new tax year.
  • Dividend tax allowances of £5,000 tax free will fall to £2,000 from the start of the tax year April 2018.
  • Increase in ISA allowance to £20,000 next tax year starting April 2017.
  • National Insurance Contributions (NICs) in Class 4 will increase for the self-employed by 1.0% from April 2018 and again in April 2019.

As is always the case with Budget announcements, 'the devil will be in the detail', and this is the case for this Spring Budget. However, change brings opportunity and it is usually a great time to focus on your financial planning as we approach the end of the tax year.

No individual advice has been provided during the course of this blog.

Keith Churchouse FPFS

Director

CFP Chartered FCSI

Chartered Financial Planner

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