Following the eagerly awaited UK Government Budget 2021 announcements made by Chancellor Rishi Sunak on Wednesday 3rd March, we have produced a summary of the key points made and the changes affecting:
- Personal taxes
- Savings and property
We hope you find this information useful. Should you have any questions about the measures introduced in the Budget and how they might impact your financial plans, or if you are interested in talking further about new opportunities arising from the announcements made, please do get in touch with you adviser or request a call back.
Commenting on their initial thoughts towards this year’s announcements:
Helen Richardson, Independent Financial Adviser, Ascot Lloyd
“Private individuals have fared surprisingly well for the time being. It was a pleasant surprise to see CGT and IHT left untouched with no changes to the tax relief on pensions, both of which were widely rumoured to suffer more punitive environments. Naturally the freezing of the Lifetime Allowance for pensions means that those with larger pension pots will need to adjust their planning to accommodate the change. Although the freezing of the personal allowance and higher rate threshold is a disappointment, it does make planning ahead slightly more simplified.”
Gill Philpott, Tax and Trust Specialist, Ascot Lloyd
“This was a budget that continued the programmes to support individuals and businesses in these difficult times, but that focussed on the country’s economic state and that this would going forward need to be addressed. A start was made to raise tax revenues, with an anticipated £21BN from freezing personal taxation thresholds and allowances until 5 April 2026. This will bring more individuals into the tax net but there are no new complex tax rules to digest.
The next step will be the launch of a series of tax policies and consultations on the 23 March, this is anticipated to deal with more complex tax changes.”