Chancellor Phillip Hammond delivered his first Autumn Statement on 23 November 2016.
Following is an overview of the main points which apply to Financial Planning:
- From the 6 April 2017 the personal Income Tax Allowance will increase to £11,500 and the point at which the higher rate of income tax will apply will increase to £45,000. By the end of this parliament the government will meet its commitment to increase the personal allowance to £12,500 and the point at which the higher rate of income tax will apply will rise to £50,000.
- The money purchase annual allowance will be reduced from £10,000 to £4,000 from April 2017. The aim of this change is to minimise the recycling of pension savings. The government are consulting on the detail of this.
- From June 2017 the rate of insurance premium tax, which is the tax applied to ‘general insurance’, will increase from 10% to 12%.
- The ISA limit will increase from £15,240 to £20,000 in April 2017.