The Autumn Budget was held on the 27th October 2021. As far as financial planning is concerned, very little has changed.
- The minimum age at which pensions can be accessed is currently 55, but this will be changed to age 57 in April 2028.
- The charging cap for auto enrolment pension schemes is being reviewed and could rise from the current level of 0.75% per annum.
- The way tax relief is administered on employer pension contributions for lower earners could be revised to make the system fairer.
- The State Pension will be increasing in line with CPI and not linked to national earnings, as it was previously.
- Income tax on dividends is set to increase from 7.75% – 8.75% for basic rate tax payers and from 32.5% – 33.75% for higher rate tax payers.
- Employee and employer national insurance rates will be increasing as a ‘health and social care levy’.
- All ISA subscription limits and pension allowances have remained the same.
- Income Tax, Capital Gains and Inheritance Tax Rates and allowances have also remained the same.