spring budget

Today, the Chancellor announced his Spring Budget today, here are the budget headlines.

For all the highlights and details you can head to BBC for a summary: http://www.bbc.co.uk/news/uk-politics-39196579 

Here are 6 key points your clients should know about the Budget 2017:

1. NICs for self-employed are going up and the dividend allowance is being reduced from £5K to £2K tax-free income.

2. The Gov. will spend £2bn on social care over next 3 years to ease pressure on NHS.

3. Tax-free childcare will soon be available for working parents. This will provide £2K per year in childcare support for each child under 12 and up to £4K for disabled children up to age 17.

4. The lifetime ISA comes into effect on the 6th April 2017. This will allow savings of £4K per year with a max bonus of £1K per year added. Funds can be withdrawn tax-free when buying your first home or until a person turns 60.

5. The Gov. is launching an NS&I Investment bond with an interest rate of 2.2% in April 2017. It will be available for 12 months and anyone over the age of 16 can invest between £100 and £3000 over a three year period.

6. £435 million to be set aside to assist small businesses affected by business rates relief revaluations. This means that no small business will pay more than £600 more in business rates this year than they did in 2016/17. Pubs with a rateable value up to £100,000 will be able to claim a £1000 business rates discount for one year.

Budget headlines source: Financial Times Adviser online magazine March 2017.

The Financial Conduct Authority does not regulate taxation and trust advice.

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