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Budget 2018: personal round-up

While this year’s Budget was an eventful one for businesses, it contained few major announcements for savers and investors.

This could come as a relief for some, after rumoured cuts to pension tax relief proved to be false. At the same time, it could be a source of frustration for those who were hoping for changes to social care funding or a boost to their savings.

That said, there were some changes that could affect the tax you pay on your income, on buying a home, and on the way you’ll be able to manage pension savings in the future.

Income tax thresholds

If your income is on the border of an income tax band, you could see a lower tax bill in 2019/20.

This is because the personal allowance will increase from £11,850 to £12,500, while the higher-rate threshold will rise from £46,350 to £50,000.

Stamp duty relief

Relief on stamp duty land tax for first-time buyers was extended to shared-ownership properties.

This relief means first-time buyers don’t have to pay any stamp duty for up to £300,000 of the property. It applies to first homes up to a value of £500,000.

The extension to shared ownership applies retrospectively from 22 November 2017, so those who would have qualified for relief can now amend their return to claim a refund.

National living wage

Over-25s earning the national living wage will receive a boost from 6 April 2019, which is set to increase by 4.9% – to £8.21 per hour.

Premium bonds

The minimum investment that must be made for NS&I premium bonds will be cut from £100 to £25 by the end of March 2019.

Additionally, people other than parents and grandparents will be able to purchase premium bonds for children under 16.

Pensions dashboard

The pensions dashboard is a Government initiative that, when launched, will allow individuals to see all of their pension pots in one place.

It was confirmed in the Budget that it will include state pension data alongside other pensions. It will also receive an additional £5 million of funding in 2019/20.

Duties

As Prime Minister Theresa May promised shortly before the Budget, fuel duty was frozen for 2019/20.

Alcohol duties for beers, spirits, and ciders were also frozen, while those for wines and high-strength ciders will rise with inflation from 1 February 2019.

Get in touch

Contact us at tracya@knightandcompany.co.uk or call 01628 631 056 to talk about how these changes could affect you.

You can also read our full Budget coverage here.