30 October, 2018
The chancellor delivered his last pre-Brexit budget yesterday. Here is a summary of some of the announcements made that may affect you:
The annual personal allowance is the amount you can earn each tax year before you have to pay income tax. The personal allowance is increasing from £11,850 to £12500 in April 2019. At the same time the amount people will have to earn before they pay tax at 40% will increase from £46,350 to £50,000.
The lifetime allowance for pensions will increase from £1,030,000 to £1,055,000 for the tax year 2018/19. This is the limit on the value of payouts from all of your pension schemes that can be made without triggering an extra tax charge.
The annual CGT exemption for individuals will increase to £12,000 for the tax year 2019/20.
The National Living Wage is an obligatory minimum wage payable to workers aged 25 and over. This will increase from £7.83 to £8.21 per hour from April 2019.
Premium Bonds are Government securities and investing in these involves no risk to your capital. No interest is generated but you are entered into regular draws for cash prizes. The minimum investment will be reduced from £100 to £25 from April 2019. The maximum will remain unchanged at £50,000.
For more information contact Peter Toner in our Financial Services department via email or phone on 01772 220383. Alternatively send any question through to Forbes Solicitors via our online Contact Form.
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