Our view of the budget and how it may affect clients.
In general, the budget was fairly benign with no real surprises. Most commentators are fairly happy with the Chancellor’s changes. My high level view is that the Chancellor, Rishi Sunak has signalled three stages for future policy.
Straight away he is helping those hit by the COVID pandemic, this phase lasts until September. We will then see a period aimed at stimulating the economy and finally from 2023 a period of tax increases to begin to repay government borrowing.
From a financial planning perspective, there were no major changes, though it is worth noting that the Pensions Lifetime Allowance (LTA) will be frozen at £1,073,100, it had previously had a policy of being index linked. If this affects you, please let us know and we can suggest a course of action.
Whilst we do not know the tax measures that will come in future budgets, it may also be worth considering tax opportunities available and tax rates today as open to possible change. Again, if you feel this may affect your plan please talk to us.
Shane Fereday DipPFS