1st December 2017 at 3:02pm
The Budget 2017 on 22 November didn’t reveal many surprises. As Jamie Jenkins, head of pensions strategy, explains, “savers have braced themselves” for Budget announcements in recent years. This time, there “weren’t any big changes on pensions and ISAs”.
There was welcome news on stamp-duty relief for first-time buyers, with the increase in the personal allowance and the higher-rate tax threshold making the headlines.
It’s good news for many people.
We covered these and more in MoneyPlus on the day, making sense of what it means for you.
We asked you to share your views with us.
How was Budget 2017 for you?
Few people told us Budget 2017 wasn’t good news for them and their finances, although there were some concerns over what might happen over Brexit and the economy.
The vast majority say the Budget is either good or won’t impact them or their finances.
Some of the comments were around tax changes announced before the Budget.
What you say interested you most
Tax is top of the list
Unsurprisingly, almost a third of the comments were around tax allowances, with the personal allowance going up to £11,850 from April 2018, and the 40% higher-tax rate threshold going up to £46,350.
The changes mean you get to keep more of your earnings in the new tax year from 6 April 2018.
“As a lower-tax band citizen, the increased threshold of the 40% tax bracket is very reassuring,” commented James from Walton.
Meanwhile, some found it “confusing” that the higher-rate tax threshold increase didn’t apply to Scotland.
With such an important change on how people might be taxed depending on where they live, we plan to cover the Scottish Budget tax changes when they’re announced in mid-December.
Help for first-time buyers with a stamp duty cut
Anyone buying their first-home knows just how hard it can be to save for a deposit and fees on top of the actual cost of the property, so it’s no surprise that just over a quarter of comments were about the stamp duty cut.
Most were resoundingly positive on the news that first-time buyers now pay no stamp duty at all on a property up to £300,000.
There’s no stamp duty for them to pay on the first £300,000 of a property up to £500,000.
Any changes for first-time buyers in Scotland would have to be announced in the Scottish Budget on 14 December.
You do need to be a first-time buyer to benefit from this tax change. Find out more on Gov.uk
Pensions and inheritance tax (IHT)
The increase in the inheritance tax allowance to £450,000 when you pass your home to a direct family member, and the bigger pension lifetime allowance of £1,030,000 had been announced earlier this year.
Paul from Hertfordshire had this to say. “Good news on inheritance tax (IHT). As a pensioner the uplift regarding [the] higher tax band means I can draw down more pension should we need it whilst paying standard-rate tax.
“Plus the increase in personal allowances is good for my wife and I.”
“Anything that ups the Lifetime Allowance on pensions is positive and any improvement on Inheritance Tax thresholds is equally welcome,” commented Greg from London.
With two Budgets this year as it moved to a new, permanent autumn timetable, the next Budget is a year away, giving you plenty of breathing space to plan your finances in time for the new tax year on 6 April 2018.
As usual, we’ll be covering it on the day.
The information here shouldn’t be regarded as financial advice and is based on our understanding in December 2017. As with any investments, the value can go down as well as up and you may get back less than you paid in.