Philip Hammond has delivered his first Budget. What does this mean for your money?
By Ed Monk, 08 March 2017
With or without new reforms, the rules governing your finances will change in April.
Growth – Forecast to be 2% in 2017, up from 1.4% estimated previously.
Income Tax – As previously announced the personal allowance will be raised to £11,500 and the higher rate threshold to £45,000 from April 2017.
National Insurance – The main rate of Class 4 National Insurance contributions to increase from 9% to 10% in April 2018 and 11% in April 2019.
Dividends – The tax-free dividend allowance for shareholders will be reduced from £5,000 to £2,000 from April 2018.
Business rates - £435 million of further support for firms affected by increases in business rates.
Industrial Strategy Challenge Fund - £270 million investment in new technologies, such as robotics and driverless cars.
ISAs – As previously announced the annual ISA allowance will increase to £20,000 from April 2017.
Budget – Following the Spring Budget future Budgets will be delivered in the Autumn, replacing the Autumn Statement.
Source: HM Treasury, March 2017.
The value of investments and the income from them can go down as well as up, and you may not get back as much as you invest. Also the value of tax savings and eligibility to invest in an ISA or SIPP will depend on individual circumstances and all tax rules may change.
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