If you had believed some of the recent press speculation on this year’s Budget, it was set to detrimentally affect those people seeking to save and invest for their futures.

The much touted reports of a possible wealth tax, increases in rates of Capital Gains Tax and cuts in Pension Tax relief have not emerged after all. These, together with Inheritance Tax and the Lifetime Pension Allowance, remain unchanged.

We have got used to regular increases to the personal tax allowances and the higher rate income tax threshold, however, these are being frozen from 2022 to 2026. Otherwise, personal taxation was untouched. National Insurance and VAT have not been altered and the Stamp Duty holiday has been extended to June 2021. Other than for smaller companies, Corporation Tax will be increased from 19% to 25% from April 2023.

Economically, we saw the first shoots of the Government’s Brexit strategy with the establishment of freeports. These are the initial steps to the UK becoming a high enterprise lower taxation hub and the start of an orientation towards both technology and sustainability. In addition, there are several other measures supporting this development. We believe our own PWM Green Matrix, a unique independent assessment of the leading sustainable investment propositions, means our clients who wish to engage are superbly placed to benefit from UK investments stimulus in this area.

On the personal financial planning front, the Budget reinforces the importance of using every allowance to build a tax efficient retirement strategy. As pension and capital gains allowances diminish in real terms, other options such as the use of alternative tax advantaged investments or offshore/onshore bonds can also be attractive and should be considered in your overall strategy.

Please click here for a full summary of the Budget covering all announcements and the allowances for the year ahead.

If you would like to discuss any of these matters, or your financial planning in the run-up to the end of the tax year, please do not hesitate to contact your adviser.

The contents of the article have been prepared solely for information purposes. The article contains information on financial products and services and such information is designed for and addressed solely to individuals seeking generic industry information.