Today’s Autumn Statement and Spending Review was relatively benign in terms of personal finance, with no changes to the main rates of tax, pensions (other than the State Pension) or savings.
However, there were some significant surprises elsewhere, here are our early thoughts.
Winners
People receiving Tax Credits
Following a vociferous campaign against the proposed Tax Credit cuts, and the Government’s defeat in the House of Lords, George Osborne was always going to have to water down his proposals.
However, no one predicted the tyre screeching U-Turn, as he announced that the proposed cuts will now be abandoned.
However, there is a sting in the tail, with the Chancellor still promising the same savings from the welfare budget, one has to asked where this money will be found?
Aspirational homeowners
A raft of measures, including the building of 400,000 more affordable homes and a Help to Buy Scheme specifically aimed at London, were announced by the Chancellor.
Existing pensioners
The triple lock, which sees the Basic State Pension rise by the higher of inflation (RPI), earnings, or 2.5% will be maintained.
New pensioners (if they qualify)
The Chancellor also announced that the new single tier State Pension will start at £155,65, but only for those who qualify by paying qualifying National Insurance contributions for at least 35 years.
NHS
The Chancellor has found more money, including an immediate £6 billion for the NHS.
Police
Despite predicted cuts of around 10%, the police budgets will be maintained in real terms.
Losers
Small businesses
There was no U-Turn on the changes to dividend tax announced in the Summer Budget, which will see the tax bills of millions of small business owners rise from April next year.
Buy to Let investors
Following the changes announced in the last Budget to the way tax is calculated for Buy to Let investors, the Government continued its clampdown on property investors.
The Chancellor announced that Stamp Duty for people buying a second property would rise by 3% from April 2016 and on the sale of a property, any Capital Gains Tax due, will be payable within 30 days, far shorter than the current 18 months allowed for payment.
Were you a winner or a loser?
We’d love to hear what you think about the Autumn Statement, were you a winner or a loser?
Why not leave us a comment below?
If you want to discuss how you are affected by today’s Autumn Statement our team of Independent Financial Advisers in Nottingham are here to help.
Feel free to call one of our IFAs today on 0115 933 8433, alternatively enquire online or email info@investmentsense.co.uk
