Eight months on from the 2023 UK Budget, Chancellor Jeremy Hunt delivered his second Autumn Statement in slightly better circumstances than his first. However, to put this Autumn Statement in some perspective, since 2020, the UK has had three Prime Ministers, Three Chancellors, and numerous Autumn/Spring Statements and Budgets.
And with a general election around the corner and a long history of politicking with UK pensions and tax allowances, rather than spending just short of an hour watching the Statement in full, you may be better served arranging a consultation with an experienced Financial Adviser who can help you take a look at all your investments and how you may fare in a number of different circumstances.
Here are the key takeaways to be aware of:
As is always the case with any fiscal event, the rumours began in the days before. Whispers of changes to Inheritance Tax and a roll back on the abolishment of the Lifetime Allowance proved to be nothing more than hearsay.
Cuts to the main rate of National Insurance (NICs) from 12% to 10% in January will help keep more cash in the pocket of workers, whilst the abolishment of Class 2 NICs and a cut to Class 4 contributions will help the self-employed.
There was however, no mention of any thawing of the freezes to income or inheritance tax, or planned reductions to Capital Gains and Dividends allowances meaning savers face a real terms pay cut in the coming months.
Consultation On UK Pensions
With the goals of improving outcomes for savers and increasing capital flow to the UK’s ‘most promising growth companies,’ Hunt confirmed his plans to push ahead with his Mansion House reforms whilst also consulting on enabling savers to be able to take existing pensions with them when moving jobs.
Pension Triple Lock Remains
With the State Pension Triple Lock confirmed, as of April 2024, recipients of a full state pension will receive more than £900 more than the previous financial year.
ISA Flexibility Increases
Although the tax free allowances remain frozen, investors will have greater flexibility from next year. Savers will have the option to deposit money into multiple ISAs and transfer partial amounts between accounts too.
As always, if you have any questions around the Autumn Statement or your investments in general, please contact your adviser to arrange a call at a time that suits you best.