It may have seemed a Bland Budget, but that’s because Hunt got all the nasties out of the way in the Autumn Statement, in the hope, I guess, that we’ll have forgotten all about them by the time they hit us. Allowances frozen in the face of soaring inflation, NI and Corporation Tax up significantly. And perhaps the stealthiest of all and one that will unduly affect many of our clients, the slashing of Capital Gains Tax and dividend tax allowances. The latter means that those with shares or investments not in an ISA or pension worth not that much, £30,000 or so, are likely to have to pay tax and most annoyingly, complete a tax return. And many, I’d say a majority, will not have a clue that they should. A lot of stress for many, possibly elderly and not-that-rich people; and something I’m sure HMRC, too, could do without.
“Reeves backs down on plans to cut ISA limit”
So it looks as though Cash ISAs are safe for the moment (FTM – is that a thing?) Rachel has apparently ‘bowed to pressure’ from the banks and building societies and decided not to reduce the allowance to £4,000 for cash and to keep the £20,000 parity with Stocks and Shares ISAs. Bowed also to common sense, I’d say.
