From a financial planning perspective, there were two significant changes –
– National Insurances increases for the self-employed that were rescinded in a letter issued by the Chancellor
– The 60% reduction in the tax-free dividend allowance (£5,000 to £2,000)
Two Budgets in one year has the potential to make a major impression on your financial plan.
In the short term, many will be better off in 2017/18 as a result of the personal allowance being increased by £500 and the basic rate band by £1,500. However, the outlook for 2018/19 is mixed, particularly for self-employed individuals.
With a number of changes already coming into effect next month, it was a relief to see no further changes to pensions and ISAs for now. But don’t rule out further substantial tax and benefit changes in the next Budget as the planning for Brexit becomes clearer.