After eighteen months without a full Budget, Chancellor Jeremy Hunt’s Spring Budget in mid-March felt like another step on the road back to normality. Following on from the Autumn statement in November – a Budget in all but name – there appeared little scope for surprise given the continuing focus on inflationary pressures. While careful leaks prepared the ground for expected and welcome measures on increased childcare provision and possible changes to pension allowances, the Chancellor’s rabbit out of the hat was the virtual abolition of the pension lifetime allowance. The move should pave the way for higher earners to continue to work and save for longer without penalty.
Our feature for this edition of our newsletter focuses on the key changes for the new 2023/24 tax year including those higher pension allowances. We highlight other areas where people may be especially affected – some potentially moving into a higher tax band as the additional rate tax band shrinks, while cuts to the capital gains tax exemption may impact on timing disposals.
Alongside analysis of the impact of the Spring Budget we also look at the true costs of inflation. Increases to gas, electricity and food prices have raced beyond the top rate of inflation generally quoted, but the overall effect is different across individuals. Our other stories include:
- The rising cost of retirement
- Caught in the unmarried trap
- Matters of life and death – choosing the right cover