The Autumn Budget contained a number of changes and announcements in pensions, estate planning and personal tax.
The Key Changes
The pension annual allowance and money purchase annual allowance will remain the same and the Lifetime Allowance will increase in line with CPI.
Inheritance tax receipts are forecast to rise from £5.2bn in 2017/18 to £6.9bn in 2023/24, an increase of 32.7%. The Government will legislate to amend the residence nil-rate band (RNRB). These amendments clarify the downsizing rules, and provide certainty over when a person is treated as ‘inheriting’ property.
Personal tax, savings and investments
From April 2019, the personal allowance will increase to £12,500 and the higher rate threshold to £50,000. Scotland may have different rates and thresholds.
The ISA annual subscription limit for 2019-20 will remain unchanged at £20,000. The annual subscription limit for Junior ISAs and Child Trust Funds for 2019-20 will be uprated in line with CPI to £4,368.