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.
Past performance is not a reliable guide to future returns. You may not get back the amount originally invested, and tax rules can change over time. The views of the author and any people interviewed are their own and do not constitute financial advice. However the knowledge that professional analysts have analysed a fund or trust in depth before assigning them a rating can be a valuable additional filter for anyone looking to make their own decisions.