For further information on more budget announcements we have provided greater detail here

Last Wednesday, Jeremy Hunt claimed he would help “build a brighter future” for Britain with his “Budget for Long Term Growth”. The finer details and assessing their impact as a whole on both the economy and your personal is our job as advisers on your behalf. So, you can leave the nitty gritty announcements to us. But there are some headline announcements you ought to take note of that might impact your finances more readily and would benefit from us having a discussion soon in order to make the most of any changes.

It would be short-sighted of us as advisers not to look at the budget as a whole as every announcement (or lack thereof) affects the economy and subsequently your finances. However, seeing the finer details and assessing their impact as a whole on both the economy and your personal is our job as advisers on your behalf. So, you can leave the nitty gritty announcements to us. But there are some headline announcements you ought to take note of that might impact your finances more readily and would benefit from us having a discussion soon in order to make the most of any changes.

Positive Growth
Let’s start on a positive note. The Office for Budget Responsibility (OBR) has forecast positive growth for the economy for the next five years. Figures increased by 0.5% since the autumn statement to be 0.8% this year and 1.9% in 2025. The same positive trend was cited for inflation, now at 4%, which is half of it’s 11% peak and predicted to be under 2% in just a few months’ time – a year earlier than originally predicted.

NI Cuts
There’s further good news if things are tight for you during our cost-of-living crisis. You could save an estimated £450 (for an average worker) from a 2p cut in National Insurance for both employees and self-employed. This might be something you find you need right now, or it could be of greater benefit to you to invest these extra savings or add to your pension pot.
Increased Savings Allowance
Speaking of (hopefully) increasing your savings. Although your current ISA allowance limit hasn’t been increased, you will be able to save an additional £5,000 in a new “UK ISA” investing in “UK-focused” shares. Unlike a cash ISA, this wouldn’t be easy-access and needs to be invested over a longer period of time to see the benefits, but it does mean you could see a higher rate of return, growing your money further. Like other investment portfolios, a UK-ISA can be matched to your risk suitability.

More Help For Young Families
The good news for saving some cash continues if you have young children. Either parent can now earn up to £60,00 and still receive child benefit (previously limited to £50,000). Additionally, partial child benefits have been introduced for those that earn up to £80,000. As with the NI cuts, this could put more money in your back pocket to play with easing those day-to-day childcare costs, or if you’re lucky it might mean you have some to put aside into savings for their future – Junior ISAs are great for this.

Energy & Transport Costs
There were a few wider announcements affecting the energy sector such as funding new nuclear power stations and taxes on profits of energy firms. But the only direct statement that may affect you on a personal level was the continuation of the 5p fuel duty cut for another year and that fuel duty will remain frozen for the 14th year. There could be bad news if you’re a regular luxury traveller – business class travellers will have to pay increased air passenger duty when flying from a UK airport. You might have to question how much you really like that leg room and ability to lie flat, or swap to exploring somewhere closer to home!

Property Costs
The good news is if you’re selling a property as a higher rate income taxpayer, the top rate of Capital Gains Tax (CGT) will be cut from 28% to 24% as of the 6th of April 2024 - this means you could have more take-home cash to use or invest. However, it’s less positive news if you’re an owner of a furnished holiday let – from April 2025 tax relief will be abolished. The same goes for the Stamp Duty relief for multiple dwellings (for those who buy multiple properties in a single transaction). This might be food for thought as to whether it’s time to sell those additional properties and invest elsewhere or if you can take those financial hits.

Support for Small Businesses
If you own a small UK business, there are extended and additional measures that could help. The Recovery Loan Scheme designed to support access to finance has been extended to March 2026. Similarly, the VAT threshold will increase from £85,000 to £90,000.

The Take Home
There’s lots of wider considerations to look at in this spring budget, this is just a start for what could visibly affect your immediate finances. Of course, the wider tax implications are always complicated, highly individualised and the longer-term implications can be difficult to identify. We encourage you to speak to your adviser to check your in the best place possible for when all these changes come into place and to make the most of any savings you may already have or be able to make going forward.

For information on our advisory services please visit our website www.whitechurch.co.uk or contact a member of our Client Services Team on:
Email: clientservices@whitechurch.co.uk
Phone: 0117 452 1208

For further information on more budget announcements we have provided greater detail here

FP3710.18.03.2024

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