Budget Key Points

Budget Key Points

News

Key Points:

  • A new Lifetime Individual Savings Account (ISA) aimed at helping people to save for a first property or to boost their retirement savings. Available for savers aged between 18 and 40, savings of up to £4,000 per tax year placed in the Lifetime Isa will receive a 25% top-up from the government, boosting annual savings to £5,000 a year.
  • Significant increase in the standard ISA limit from £15,240 to £20,000 in April 2017.
  • Personal allowance, the amount everybody can earn each year without paying income tax-will rise to £11,500 in 2017-18. It is currently £10,600 and is due to rise to £11,000 on 6 April 2016. The threshold for higher-rate tax will increase from £42,385 to £43,000 in April this year and then £45,000 in 2017-18.
  • A cut in capital gains tax on assets such as shares. However this will not apply to residential property which will be subject to an 8% surcharge, so buy-to-let investors and second homeowners will not benefit.
  • A significant increase in small business rate relief to £15,000.
  • Fuel duty frozen.
  • A sugar tax levied on soft drinks manufacturers.

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