Another dull Budget

The chancellor had very little in the way of surprise announcements for us in his Budget statement this month, although there were one or two. Here’s our quick summary of some of the key points from a financial planning perspective:


  • Lifetime Allowance will rise to £1,030,000 from the 2018/19 tax year.

  • State Pension will increase by the triple lock in April 2018 at a rate of 3%, equating to £3.65 per week more on a full basic State Pension.

National Living Wage & National Minimum Wage

  • The National Living Wage for those aged 25 and over will increase from £7.50 p/h to £7.83 p/h from April 2018.

  • The National Minimum Wage will also increase:

21-24 year olds

18-20 year olds

16-17 year olds


£7.83 per hour

£5.90 per hour

£4.20 per hour

£3.70 per hour

Income Tax

  • The Personal Allowance will increase as planned to £11,850 in the 2018/19 tax year.

  • The Higher Rate Threshold will also increase to £46,350 for the 2018/19 tax year.

Individual Savings Accounts (ISAs)

  • The annual ISA subscription limit for 2018/19 will remain unchanged at £20,000.

  • Junior ISA and Child Trust Funds limits will also rise in line with CPI to £4,260.

Stamp duty cut for first-time buyers

  • Stamp duty has been abolished for first-time buyers on homes under £300,000 with effect from 22nd Nov 2017.

It was hardly surprising that there was nothing much to report on this most recent Budget. The Government’s position is weak and relies on co-operation from the Democratic Unionists. As a result there were no tax rises, and few cuts to services (most of the latter having already been done!). For our part we were relieved to find there was no ‘tinkering’ with pensions tax relief – a period of stability is welcome after a few years of upheaval.

And finally…
The one surprise announcement was the immediate abolition of Stamp Duty Land Tax for first-time buyers on properties under £300,000. This was a move that most certainly wasn’t predicted and while its aim is to facilitate first-time buyers getting on the housing ladder, there are fears it could push prices up. If you’ve got any questions as a result of the Budget, do get in touch.

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