For people tax planning in Cheshire and Oswestry, there was plenty to mull over in this week’s Budget. The Chancellor of the Exchequer, John Healey, announced a series of measures designed to offer people financial assistance this winter, including a much-publicised one-off targeted £100 fuel allowance.
Amongst the changes to taxation was an extension to the VAT cut on electricity bills, now due to end in July. Gas supply connection fees or standing charges are also set to be abolished across Britain, which the Treasury estimates will save an average of £45 a year for 60% of households. Elsewhere, the 5p reduction in petrol and diesel duty announced by the previous government is to be extended to July 2027, leaving the 52.9p per litre levy intact for now.
In another move, the chancellor cancelled his predecessor’s proposals to cut the annual amount of savings people are able to store in Individual Savings Accounts (Isas). Under the new regime, novice investors will have the option of creating a Starter Isa instead. For people who have large savings or do not use up their £20,000 allowance, tax rates will go up from April and will now stand at 24% for taxpayers on the basic rate and 44% for those on the higher rate.
In terms of the triple lock, the state pension is set to reflect wage increases, rising by 3.9%. People who qualified for a state pension after April 2016 will now get a £488 increase to £250.70 a week, which works out at £13,036.40 across the year, while people who had reached the state pension age prior to April 2016 will now get £192.10 a week, the equivalent of £9,989.20 per annum, a £374.40 increase.
