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BUDGET

16 MARCH 2016

there will be a new charge on loans paid through disguised

remuneration schemes that have not been taxed and remain

outstanding on 5 April 2019.

Tax-free childcare

Tax-free childcare will be rolled out for children under age 12

from early 2017. The existing employer-supported childcare

scheme will remain open to new entrants until April 2018.

Transport benefits

Fuel duty remains frozen, but the fuel and van benefit charge

multipliers will rise by RPI in April 2017. CO

2

emissions will remain

the basis for the company car tax charge from 2020/21. There will

be a consultation on reforming the bands for ultra-low emission

vehicles (below 75g/km) to refocus incentives on the cleanest cars.

PENSIONS, SAVINGS AND INVESTMENTS

Lifetime ISA and ISA limit

A new Lifetime ISA will be available from April 2017 for adults

aged under 40. There will be an annual contribution limit of

£4,000 and savers will receive a 25% government bonus, i.e.

£1,000 bonus for every £4,000 contributed. Funds, including

the bonus, can be used to buy a first home at any time from

12 months after opening an account. They can be withdrawn

tax free from age 60 for other purposes. The overall annual ISA

subscription limit will be increased to £20,000 from 6 April 2017.

ISAs – tax advantages during the administration period

The ISA savings of a deceased person will continue to benefit

from ISA tax advantages during the administration of their estate.

Help to Save

Individuals in low-income working households (e.g. those receiving

Universal Credit) will be able to save up to £50 a month in a Help

to Save account and receive a 50% government bonus after two

years. Account holders can then choose to continue saving for a

further two years’ bonus.

Pension flexibility

There will be a number of changes to the pension flexibility rules.

saver

Check that you and your

partner have optimised

your ownership of

investment and savings.

The new personal savings

allowance and dividend

allowance mean a new

approach could be

required.

£