What does the Autumn Statement mean for you?
After intense speculation Chancellor Phillip Hammond finally delivered his autumn statement this week – and there was some good news for those seeking to invest their money.
While the newspapers were fixated on the implications of Brexit, I was looking for the changes that will help you to make the most out of your savings and investments. After all, while the politicians and media moguls are battling it out across the headlines, I’m well aware that savers are suffering from the stagnation of their money in low-yielding investments and banks.
So here are the points that I think could have an impact on your financial fortunes.
The Government revealed their new savings bond, and its great news for those with a small amount to invest. This bond offers 2.2% interest for a three-year-term and is available to anyone aged 16 or over with a minimum of £100 and a maximum of £3,000 to invest. The National Savings and Investments will issue the bond from April 2017 for 12 months. It’s good to see the Government recognise the need to give people across different income levels the chance to use a savings bond that will deliver some meaningful results for them.
Pushing the tax threshold
For everyone, the news that the personal income tax threshold will continue to rise is welcome. The Government had already promised to raise it to £11,500 per annum by April 2017 and the autumn statement confirmed they will deliver on that promise. They are now aiming to lift the threshold to £12,500 by 2020, and say that the higher rate tax threshold will be £50,000 by the end of this parliament.
Pension Freedom curtailed
After affording pension freedoms in April 2015, the Government is now seeking to deal with the manipulation of the initiative by scammers. Mr Hammond says they are consulting on how to shut down this fraudulent behaviour with a ban on cold calling in relation to pension products, and to give providers greater powers to block suspicious fund transfers.
We can all agree that their actions are necessary and responsible, but there’s disappointing news for those taking advantage of the Money Purchase Annual Allowance. From next April, the MPAA will be reduced and capped at £4,000 as Mr Hammond wants to limit beneficiaries from gaining double pension relief.
That could come as a blow to some people, but here at Moyes Investments, the team and I are skilled at finding solutions to change. Whatever your income level, I’m happy to talk over your situation with you and help you decide the best place for you to put your money.
Just call 01638 429975 or email [email protected]