What the Autumn Budget 2017 means for your savings and investments

ISA allowances

  • The ISA allowance will remain unchanged at £20,000 for the 2018-2019 tax year.
  • The Junior ISA allowance will rise from £4,128 to £4,260 for the 2018-2019 tax year, in line with inflation.
  • The Child Trust Fund (CTF) allowance will also rise from £4,128 to £4,260.

Pension lifetime allowance

  • The lifetime allowance for pension savings will increase in line with inflation, rising to £1,030,000 for the 2018-2019 tax year.

Enterprise Investment Schemes (EIS)

  • The government will double the annual allowance for people investing in knowledge-intensive companies through EIS and the annual investment those companies can receive through EIS and the Venture Capital Trust schemes. In addition a new test will be introduced from 2018 to ensure that EISs and VCTs are not being used for low-risk investments.

Venture Capital Trusts (VCT)

  • The good news is that the 30% income tax relief has not been reduced.
  • Certain rules for VCTs themselves were changed, which may result in some changes to investment strategies over the longer term.

Income tax and National Insurance contributions

  • From April 2018, the personal tax-free allowance will be increased to £11,850.
  • The higher rate threshold will also be increased to £46,350.
  • The government estimates that this will mean that a typical basic rate tax payer will pay at least £1,075 less tax in the 2018-2019 tax year, than they did in 2010-2011.
  • As previously announced, the government will no longer proceed with an increase to the main rate of Class 4 national insurance Contributions from 9% to 10% in April 2018, and to 11% in April 2019.
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