Client area
Back to main news
#StayInTouch
8th April 2022
Latest newsStayInTouchPodcasts

Our Tax and Trust Specialist, Gill Philpott is joined by financial advisers Lindsay Carter and Mathew Lamping to discuss the key points from the Chancellors recent Spring Statement.
 

This functionality requires Performance and Targeting Cookies.

Please enable them within your Privacy Settings.

 
Here are some of the points discussed by Gill, Lindsay and Mathew:

Increasing the National Insurance tax threshold

The threshold at which National Insurance is paid was raised by £3,000, to £12,570, aligning it with the personal allowance for income tax. This means those earning up to £12,570 will pay no income tax or National Insurance.

This will mean that despite the National Insurance rate increase of 1.25% with the threshold increase employees and the self-employed with income up to about £38,000 will not find their net income reducing. But of course, the issue of cost of living and energy price rises will mean in spending terms all will feel worse off. 

Increasing dividend tax rate

In addition to the National Insurance rate increase, the dividend tax rate is also rising by 1.25% for the next tax year. These increases are to support the ongoing funding issue of health and social care. Pensioners who rely on investment income to supplement their income are likely to feel the impact of the dividend tax rate increase.

Measures to address the energy crisis

The Chancellor also introduced three measures to address the energy cost issue, with a 5p per litre reduction in fuel duty, 5% vat rate introduced for energy saving materials and finally, support for vulnerable households. 

Rishi finished the statement with a flourish, a cut in the basic rate of income tax, from 20% to 19%. Not to be introduced for the next tax year, but something to look forward to in the 2024/25 tax year.

If you would like to find out more about any of the areas outlined above or are interested in receiving some advice, please don’t hesitate to contact your financial adviser.

Alternatively, please complete the form below and a member of our team will be in touch.

Request a call back 

You might also like:

Spring Statement 2022 - What it means for your money and financial plans

Ascot Lloyd can help with:

  • Planning for retirement
  • Pensions
  • Inheritance Tax planning
  • Investment planning
  • Mortgages
  • Protection
  • Business financial planning

#StayInTouch

We are open for business as usual, our Financial Advisers are available on the phone so please contact us if you have any questions.

Important Information

Past performance is not a guide to future performance and may not be repeated. Investment involves risk. 

The value of investments and the income from them may go down as well as up and investors may not get back any of the amount originally invested. Because of this, an investor is not certain to make a profit on an investment and may lose money. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is for information purposes only and is based on our understanding of current UK tax legislation and HM Revenue and Customs (“HMRC”).  Levels and bases of taxation and reliefs are subject to change and their value to you will depend on your personal circumstances. Nothing in this communication constitutes financial, professional or investment advice or a personal recommendation.

This communication should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments in any jurisdiction. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in the document. Any opinions expressed in this document are subject to change without notice and may differ or be contrary to opinions expressed by other business areas or companies within the same group as Ascot Lloyd as a result of using different assumptions and criteria.

This communication is issued by Capital Professional Limited, trading as Ascot Lloyd. Ground Floor Reading Bridge House, George Street, Reading, England, RG1 8LS. Capital Professional Limited is registered in England and Wales (number 07584487) and is authorised and regulated by the Financial Conduct Authority (FRN: 578614).