Goodman Jones Spring Budget 2024

BUDGET l 15 March 2023 6 arc 2 24 8 Financial Conduct Authority (FCA) Value for Money (VFM) proposals The FCA’s consultation on VFM will include proposals to require the publication of contract-based defined contribution (DC) default funds’ historic net investment returns and a breakdown of their UK investments. The proposals will require schemes to compare their performance, costs and other metrics with those of at least two schemes managing over £10 billion in assets, a level that is expected to increase significantly over time. In consultation with the FCA, the government will introduce legislation at the earliest opportunity to apply the VFM framework across the market. The Pensions Regulator will be provided with new powers to ensure key disclosures are in place by 2027. Individual savings accounts (ISAs) A consultation paper has been published on the creation of a UK ISA, which could invest in UK shares or other UK-oriented investments, possibly including corporate bonds and gilts. The new UK ISA will have a subscription limit of £5,000 in addition to the existing £20,000 ISA allowance. The ISA annual subscription limit for 2024/25 will remain at £20,000 and the corresponding limit for junior ISAs (JISAs) and child trust funds (CTFs) will stay at £9,000. Several technical changes to ISAs take effect from 6 April 2024, including a rise in the minimum opening age for cash ISAs to 18; the end of restrictions on subscriptions to multiple ISAs of the same type within the tax year (except for Lifetime ISAs); and the lifting of the ban on partial transfers of current year ISA subscriptions between ISA managers. NatWest retail offer A sale of part of the government’s NatWest shareholding to retail investors will take place this summer at the earliest. The government intends to fully exit its shareholding in NatWest Group by 2025/26, subject to supportive markets. British Savings Bonds National Savings & Investments (NS&I) will launch the British Savings Bond in early April 2024. This will offer consumers a guaranteed interest rate that will be fixed for three years.