Skip to main content

October Budget Update

Personal Tax-free Allowance & Higher Rate Tax

The personal allowance – how much you earn before you need to start paying income tax – will increase by £650 in April 2019, to £12,500.

Higher-rate income tax threshold to rise to £50k
The earnings threshold at which you’d need to pay the higher rate of tax (currently 40%) is going up to £50,000, from £46,351.

Both changes come into effect from 6 April 2019, a year earlier than planned. The Treasury estimates that around 32 million people will benefit as a result.

Lifetime Allowance

As announced earlier, the Lifetime Allowance is due to rise by 2.4 per cent to £1,055,000 in 2019 in line with September’s consumer price index (CPI) inflation figure, which is good news for pension savers. The Lifetime Allowance is the maximum you normally can save over the lifetime of your pension pot without paying extra tax.

There were no changes to pensions tax relief rates and allowances, which is good news for those saving into a pension.

ISA (Individual Savings Account) allowances for 2019-2020

ISAs are a tax-efficient way to save, so it’s good news that the Junior Isa allowance will get an inflationary increase from April 2019 to £4,368. There’s no change to the adult ISA limit, which stays at £20,000.

Stamp duty abolished for more first-time buyers

First-time buyers of shared ownership properties of up to £500,000 no longer have to pay stamp duty, in a move which will help more people get on the housing ladder. The stamp duty cut is being applied retrospectively to 22 November 2017, so anyone who is eligible will be able to claim a refund. This applies to England and Northern Ireland.

Capital gains tax allowance up

The capital gains tax allowance will increase by £300 to £12,000 from April 2019.


National Living Wage Increase

National Living Wage increasing by 4.9%, from £7.83 to £8.21 an hour, from April 2019.
Location: st.nicholas court, Dersingham, King's Lynn PE31, UK

Comments

Post a Comment

Popular posts from this blog

STEP Affiliates

As a firm we are constantly trying to move forward with our standards and professional development. We have aspirations of obtaining Corporate Chartered Adviser’s status early next year and are also working to achieve accreditation from the Society of Later Life Advisers (SOLLA). Another professional accolade we have been working on is becoming Affiliate members of The Society of Trust & Estate Practitioners "STEP" and we are pleased to announce both Michael and Ben are now Affiliate members of STEP. "STEP is the global professional association for practitioners who specialise in family inheritance and succession planning. We work to improve public understanding of the issues families face in this area and promote education and high professional standards among our members."
Post a Comment
Read more

An update on ISAs

Cash These ISAs are the simplest form, but unfortunately at present paying poor returns and in most cases not keeping pace with inflation. Enjoys Financial Services Compensation Scheme Protection up to £85,000 per provider. The ISA limit for 2017-18 is £20,000. Stocks and shares All or some of the annual ISA allowance can be invested in stocks and shares. This can be done directly in shares of companies or in bonds, or through funds or investment trusts, which are funds that are traded on the stock market. Investors can also use 'passive' investments, which are low cost and track different markets, such as the FTSE 100. The ISA limit for 2017-18 is £20,000. Junior Junior ISAs are for those under the age of 18. Up to £4,128 can be saved into these ISAs in the 2017-18 tax year. At age 18 this money is then converted into an adult ISA, and the child takes control (and can do what they want with the money). The money cannot be withdrawn until age 18, unless the child is te...
Read more

Inflation

United Kingdom Inflation Rate 1989-2018 The UK consumer price inflation eased to 3 percent in December 2017 from a near six-year high of 3.1 percent in the previous month, as widely expected. Prices rose at a softer pace for transport, recreation and culture, housing and utilities, and food and non-alcoholic beverages. Inflation Rate in the United Kingdom averaged 2.58 percent from 1989 until 2017, reaching an all-time high of 8.50 percent in April of 1991 and a record low of -0.10 percent in April of 2015. Consumer prices index (CPI) is the government's preferred measure of inflation. It is used for international comparison and the government inflation target for the Bank of England Monetary Policy Committee. It is available as an index from January 1997, with estimates back to 1988. It excludes mortgage interest payments and council tax. As of the 2010 budget, CPI as part of the triple-lock, is used to index state pensions in place of RPI. Why is inflation important? Keep...
Post a Comment
Read more