We interrupt our guide to financial planning to bring you our Spring Budget Special……..much ado about nothing!

Pensions & Savings
Money Purchase Annual Allowance (MPAA)
– The Government believes that an MPAA of £4,000 is fair and reasonable and should allow individuals who need to access their pension savings to rebuild them if they subsequently have opportunity to do so.
– The reduction in allowance from £10,000 to £4,000 will limit the extent to which pension savings can be recycled to take advantage of tax relief, which is not within the spirit of the pension tax system.
This is effective from 6th April 2017 for all individuals who have flexibly accessed income.

Tax –free Dividend Allowance
Reduction in tax-free dividend allowance for shareholders from £5,000 to £2,000 from April 2018

Personal taxation
The main rate of Class 4 National Insurance contributions to increase from current rate of 9% to 10% in April 2018 and 11% in April 2019, raising £145m a year by 2021-22 at an average cost of 60p a week to those affected

Business
-£435m for firms affected by increases in business rates
-£300m hardship fund for small businesses worst affected
-Pubs with rateable value of less than £100,000 to get a £1,000 discount on rates they pay -Any business losing existing relief will not pay more than £50 a month.

Education
– £300m to support 1,000 new PhD places and fellowships in STEM (science, technology, engineering and maths) subjects
– Free school transport extended to all children on free school meals who attend a selective school
– Increased investment in schools of £216m
– New T-Levels to be introduced to give parity of esteem for technical education
– Number of hours of training for technical students aged 16 to 19 to be increased by more than 50%, including a high-quality, three-month work placement

Health & Social Care
-£100m to place more GPs in accident and emergency departments for next winter
– Additional £325m to allow the first NHS Sustainability and Transformation Plans to proceed
– An extra £2bn for social care over next three years, with £1bn available in the next year
– Long-term funding options to be considered but so-called “death tax” on estates ruled out

Housing/infrastructure/transport/regions/science
– Transport spending of £90m for the north of England and £23m for the Midlands to address pinch points on roads
– £270m for new technologies such as robots and driverless vehicles, £16m for 5G mobile technology and £200m for local broadband networks

 

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