Chancellor of the Exchequer, the Rt Hon Jeremy Hunt MP, delivered his Spring Budget on 15th March 2023, sitting down at 13:32 GMT.
Key pensions points
• The Lifetime Allowance charge will be removed from April 2023.
• The Lifetime Allowance will be abolished entirely from April 2024.
• The Annual Allowance will be raised by 50%, from GBP 40,000 to GBP 60,000 from April
2023.
• The Money Purchase Annual Allowance (for those that have flexibly accessed their
pensions) will be raised from GBP 4,000 to GBP 10,000.
• The minimum Tapered Annual Allowance will also increase to GBP 10,000 and the Threshold Income will be raised to GBP 260,000.
• The maximum Pension Commencement Lump Sum for those without relevant protections will be retained at its current level of £268,275 and will be frozen thereafter.
Key personal taxation points
• The starting rate for savings income will be frozen at GBP 5,000.
Key tax efficient savings points
• Annual subscription limits for Junior ISAs, child trust funds, and adult ISAs remain the same.
• The eligibility to manage ISAs will be restricted to financial institutions with a UK presence.
Key inheritance taxation and trust points
• The government is launching a consultation on the expansion of agricultural property relief to cover certain types of environmental land management.
• Agricultural property relief and woodlands relief from inheritance tax will be restricted to
property in the UK from 6 April 2024.
• The government will formalise and extend an existing income tax concession for low income trusts and estates, and remove some non-taxpaying trusts from IHT reporting requirements.
Tax administration and compliance
• A consultation has been launched on “Simplifying and Modernising HMRC’s Income Tax services through the tax administration framework” ending on 7th June 2023.
• A consultation will be launched on introducing a criminal offence for promoters of tax avoidance who fail to comply with a legal notice from HMRC to stop promoting a tax avoiding scheme.
• The government will double the maximum sentence for tax fraud to 14 years imprisonment.
Investment Zones
• 12 new investment zone growth clusters will be launched with a 5-year tax offer, matching those in Freeports.
To discuss this budget or to find out about our safe and efficient, international financial solutions, contact me today. I will be happy to help with whatever questions you may have.
Rob.
E: robert.gourlay@holbornassets.com T: (+6) 01151565649 W: www.rgwealthsolutions.com
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