SPRING BUDGET – March 2023
Following the recent 2023 Spring Budget, please see below a summary of the main financial points:
Pensions
- The Lifetime allowance for pensions is being abolished from April 2024. The current lifetime allowance of £1,073,100 will remain until this date.
- However, the tax-free cash entitlement will remain at 25% of the current lifetime allowance; total of £268,275.
- The annual contribution allowance will increase to £60,000 from the start of the new tax year.
- The money purchase annual allowance will increase to £10,000 from the new tax year.
- Finally, the tapered annual allowance threshold is increasing to £260,000.
- Jeremy Hunt was keen to implement these changes to encourage doctors to continue to work beyond age of 50, however he realised that this issue was reoccurring over multiple industries and therefore concluded that everyone should benefit.
- Your adviser will be able to discuss the impact this has on your own personal finances at your review meeting, however if you wish to discuss beforehand please do not hesitate to contact them directly.
Investments
- The ISA subscription limit remains at £20,000 in 2023/24.
- The Junior ISA and Child Trust Fund subscription limits remain at £9,000 in 2023/24.
- Please refer to our previous blog, Autumn Statement dated 1st December 2022 for more details surrounding various tax changes which will be implemented from the start of the new tax year.
Child Care
- Free childcare in England for working parents is to be extended to children aged 9 months to 3 years old and therefore free childcare will now be available for up to 5-year-olds. This will be implemented in stages by September 2025 and you will have up to 30 hours available per week.
If you wish to discuss any of the above with relation to your own finances and financial plan, please feel to call us on 01626 833225 or email us to find out more.
For clarification of any points discussed above and any future independent advice regarding your own financial planning, please do contact us on 01626 833225 or email [email protected]
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Important Information
The views and opinions contained herein are those of Loughtons Independent Financial Advisers and may not necessarily represent views expressed or reflected in other economic communications, strategies or funds.
This document is intended to be for information purposes only and it is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. Information herein is believed to be reliable but Loughtons Independent Financial Advisers does not warrant its completeness or accuracy. No responsibility can be accepted for errors of fact or opinion. This does not exclude or restrict any duty or liability that Loughtons Independent Financial Advisers has to its customers under the Financial Services and Markets Act 2000 (as amended from time to time) or any other regulatory system.
Loughtons Independent Financial Advisers is a trading name of JPRS (South West) Limited. JPRS (South West) Limited is authorised and regulated by the Financial Conduct Authority.