The Chancellor George Osborne has delivered his Budget statement to the House of Commons on Wednesday 16 March 2016.
Here’s our summary of the main announcements affecting personal finance:
The tax-free personal allowance will increase to £11,500 from April 2017. The threshold at which people pay 40% tax will rise to £45,000.
Help To Save Scheme
A new savings scheme for lower-paid workers will be introduced, worth up to £1,200 over 4 years.
- Fuel duty will be frozen for the 6th year in a row.
- Duty rates on beer and cider will be frozen this year.
- Excise duties on tobacco are set rise by inflation.
Lifetime ISA Allowance
A lifetime ISA will be introduced to save for long-term retirement or to buy your first home. Adults under 40 will be able to save £4,000 each year with savers receiving a 25% bonus from the government.
The total ISA limit saved each year will also increase from £15,240 to £20,000 from April 2017.