If you are investment planning in Cheshire this year, look out for a series of personal finance changes coming up in the first quarter.
January
This month, the new energy price cap was introduced on New Year’s Day. NS&I, meanwhile, have reduced the Premium Bond prize fund to 4%, following an earlier fall from 4.4% to 4.15% in December.
Parents of children at independent schools will also be noting the end of the VAT tax break, which the government announced in the last Budget.
February
Next month will see the Monetary Policy Committee (MPC) of the Bank of England convene for its first meeting of the year to deliberate on base rates. A further meeting is scheduled for March. There are expectations that interest rates will fall further following the previous cut to 4.75%, although there are no indications we will see a return to the low levels of the 2010s.
March
Traditionally, there is a fiscal statement by the Treasury around March time, although this hasn’t yet been confirmed for 2025. The Chancellor, Rachel Reeves, may take the opportunity to comment on the UK’s economic health, while proving financial forecasts and highlighting any new tax changes.
Meanwhile, the end of March will see the end of the stamp duty holiday, as the threshold reverts to £125,000 from £250,000 and from £425,000 to £300,000 for first time buyers. This has prompted some analysts to predict a big rise in property deals and a related increase in house prices, as buyers rush to beat the stamp duty deadline.
