With this year’s autumn statement announced by the Chancellor, it’s time for us to look at some of the specific details which may affect you, your family or your business and consider what impact, if any, the new changes will have on your life. We’ve broken down the information into four bite-size sections so you can quickly find the facts that apply to you.
Shake-ups surrounding pensions have been small and gentle, with the big decisions – specifically those about pension tax relief reforms – delayed until next spring, giving more time to prepare and, crucially, more time to benefit from current rules.
Meanwhile, the upcoming increases in minimum auto-enrolment payments for employers has been pushed back by at least six months and state pensions are set to increase by just under 2.9% by the coming April, meaning that generally speaking we have good news all around.
Less good news for those owning buy to let properties, unfortunately, as the chancellor has announced changes in both stamp duty land tax (SDLT) and capital gains tax (CGT).
The first finds an increase of SDLT for those who own second properties worth £40,000 or more, while the second means that CGT will have to be paid within 30 days of disposal – although this isn’t set to be implemented until 2019, it is expected that it could bring some tax payments forward by almost two years!
Elsewhere in the world of taxes, Osborne has stayed true to the figures announced in the summer budget – personal allowance increasing by £400 to £11,000 and higher rate threshold increasing by just over £600 to £43,000. He also confirmed the changes to dividends which we discussed at more length in this post last month.
In another piece of good news, rules surrounding deeds of variation will remain the same, allowing current levels of flexibility surrounding the division of assets after death to continue.
The lack of large shake-ups and changes in this season’s budget is certainly good news for the majority of us, as it allows for a certain level of stability as we try to place down plans for our lives. Sadly there is rarely, if ever, a budget that sees everybody emerge unscathed, and this year the biggest losses come to those buying properties to let.
If you have any concerns surrounding your current or future finances, please don’t hesitate to contact us – as independent financial advisors in Lancaster we can offer all the support you may need. Get in touch today, online or at 01524 416511, and don’t forget to follow us on Facebook and Twitter for more industry updates and news.