So nothing much has really changed, which is not surprising as we are not out of the woods yet with this virus, but here are the main points from a financial planning perspective:
- Personal income tax allowance is changing to £12,570 next month and will remain at this level until 2026
- Higher rate tax is frozen at £50,270 until 2026
- Corporation tax is increasing from 19% to up to 25% from 2023 – ouch!!
- Stamp duty holiday extended to June 2021
- No changes to capital gains tax
- Inheritance tax allowance frozen at £325,000 and £175,000 for the residence nil rate band, so you still have £500,000 in total if you own a house that you are leaving to your kids
- Lifetime pension allowance frozen at £1,073,100, so as your pension steadily builds in value, the allowance is not
- Contactless payment limit going up to £100 later in the year
- A new green bond will be available from NS&I this summer, which could be interesting
That’s it for this year. Watch out next year!!