Assuming the new allowance stays at £9,000, parents could contribute an additional £83,376 during their child’s lifetime in a tax efficient environment. This could result in a total of £162,000 being invested, bringing the total pot to £259,997 by the age of 18 assuming 5% annual growth.
The £3,000 cash grants and the suspension of business rates for a year for the retail, leisure and hospitality sector should be a relief at a very difficult time for many small businesses which are the lifeblood of the domestic economy.
The much-rumoured increase in fuel duty didn’t happen and the recent fall in oil prices will therefore give consumers an extra boost instead.
There were plenty of environmental measures to encourage energy efficiency and support for businesses to transition to net zero carbon, alongside plastic packaging tax measures and abolishing tax breaks on certain users and red diesel.
The Chancellor said, “if the country needs it we will build it.” Strategic infrastructure in rail, roads and broadband is music to the ears of construction firms – he even has the A303 in in his sights!
The pension annual allowance (the maximum you can contribute to a pension scheme in a tax year is usually £40k), is reduced or ‘tapered’ for those earning over £110,000 a year. This is now being relaxed in order to remove an important barrier that prevent GPs working more hours.
Written by Rob Morgan, Pensions & Investments Analyst at Charles Stanley Direct