Budget commentary 2018. |

29th October 2018

UK Treasury Budget

The Chancellor of the Exchequer, Philip Hammond, has today delivered this year’s Budget Report.

Paul Morton, Investment Planning Director, comments;

“Despite many rumours of further changes to pension allowances (lifetime and annual) and pension tax relief, the Budget was void of any material change.

From a personal financial perspective, the raising of the personal allowance and the higher rate tax threshold will provide a welcome reduction in the income tax burden for many.

Other allowances and reliefs have either been maintained or increased, as planned, in line with inflation.”

Please see our summary below;

Personal Allowance and higher rate threshold

The government will meet its commitment to raise the Personal Allowance to £12,500 from April 2019, one year earlier than planned.

The government will also increase the higher rate tax threshold to £50,000 from April 2019, also one year earlier than planned.

Lifetime allowance for pensions

The lifetime allowance for pension savings will increase in line with CPI for 2019-20, rising to £1,055,000.

Starting rate for savings

The band of savings income that is subject to the 0% starting rate will be kept at its current level of £5,000 for 2019-20.

Individual Savings Account (ISA) annual subscription limits

The adult ISA annual subscription limit for 2019-20 will remain unchanged at £20,000. The annual subscription limit for Junior ISAs for 2019-20 will be uprated in line with CPI to £4,368.

Child Trust Funds

The government will publish a consultation in 2019 on draft regulations for maturing Child Trust Fund accounts. The annual subscription limit for Child Trust

Funds for 2019-20 will be uprated in line with CPI to £4,368.

Links to websites external to those of Wealth at Work Limited (also referred to here as ‘we’, ‘us’, ‘our’ ‘ours’) will usually contain some content that is not written by us and over which we have no authority and which we do not endorse. Any hyperlinks or references to third party websites are provided for your convenience only. Therefore please be aware that we do not accept responsibility for the content of any third party site(s) except content that is specifically attributed to us or our employees and where we are the authors of such content. Further, we accept no responsibility for any malicious codes (or their consequences) of external sites. Nor do we endorse any organisation or publication to which we link and make no representations about them.