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08 Mar

Headlines from Spring Budget

Headlines from today's budget

Self-employed
The main National Insurance contribution rate paid by the self-employed will increase from its current level of 9% to 10% in April 2018, and then to 11% in April 2019 for those earning more than £8,060.

Shareholders
Director shareholders will see a tax break reduced on the dividends they receive from £5,000 to £2,000 from April 2018.

Savers
The Investment Guaranteed Growth Bonds will be offered by National Savings and Investments from April, paying interest of 2.2%.The bond will be open to those aged 16 and over, subject to a minimum investment limit of £100 and a maximum investment limit of £3,000. Savers must lock in their money for three years.

Launch of the Lifetime Individual Savings Account (LISA) for those aged between 18 and 40. They can save up to £4,000 a year, and the government will add a 25% bonus if the money is used to buy a home or as a pension from the age of 60.

The amount that can be saved in a tax-free Individual Savings Account (Isa) is rising from £15,240 a year to £20,000

Pensions
The money purchase annual allowance (MPAA) will reduce to £4,000 from £10,000 in April 2017.

Income tax
The personal allowance (currently £11,000) and will go up to £11,500. The threshold for higher rate will go up from £43,000 to £45,000, except in Scotland (owing to devolved powers) where it will be £43,000.

 

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