The tax-free “personal allowance” for workers in the UK is set to rise to £12,500 for the 2019-2020 tax year, up from £11,850 in the current year. basic rate tax payers – approximately 32 million people – will see their take home pay rise by around £132 a year.Crucially, the allowance will then rise in line with the rate of inflation.The higher rate income tax threshold, the point at which people start paying tax at 40%, to rise from £46,350 to £50,000 in April. After that, the two rates will rise in line with inflation
Further benefit for first time buyers buyers of shared ownership properties in England and Northern Ireland with a value of up to £500,000 will be exempt from paying stamp duty on their properties, or get significant relief
UK state pension
The state pension will rise by 2.6% in the 2019/20 tax year, today’s Budget confirmed, and pensions were spared from any dramatic cuts. Both the pre-April 2016 basic state pension and the new state pension are protected by the triple lock guarantee. It means the state pension rises each year by the greater of annual price inflation, average earnings growth or a guaranteed 2.5% minimum.
Lifetime allowance on pensions
The pension lifetime allowance has been set at £1,055,000 for 2019-20. You can save as much as you want to in your pension during your working life – but if it exceeds a total amount (the lifetime allowance), you could be hit with a hefty tax charge. this is 25% The Chancellor did announce that the lifetime – the total amount you can put into a pension – for pension savings will increase in line with CPI for 2019-20, rising to £1,055,000.
The UK economy
Era of austerity is “finally coming to an end”, the chancellor says2018 growth forecast downgraded to 1.3% from 1.5% in March, due to impact of bad Spring weatherBut forecast for 2019 raised from 1.3% to 1.6% and annual forecasts raised to 1.4%, 1.4%, 1.5% and 1.6% in 2020, 2021, 2022 and 2023 respectively. Extra £500m for preparations for leaving the EU
Find out how we can help you
If you would like to understand more about this topic get in touch
Get our latest financial blogs and articles straight to you inbox.
In partnership with
AES Financial Services Ltd which is Authorised and Regulated by the Financial Conduct Authority under registration number 464494. You can check this on the Financial Services Register at http://register.fca.org.uk. AES Financial Services Ltd (“AESFSL”), trading as AES International, is registered in England no. 06063185, its registered office being at 7 Bell Yard, London, WC2A 2JR