The task of working out who are the winners and losers after each Budget is never easy. The initial announcements can often look very different once the detail is revealed.
However, here are our early thoughts.
Generation Y savers
Perhaps the biggest headline will go to the introduction, in April 2017, of a new Lifetime ISA, to help younger people save for a home, as well as retirement.
The new Lifetime ISA will allow savers to contribute up to £4,000 each year and for every £4 saved, the Government will give an extra £1. The money can be used to help purchase a property, up to £450,000 in value, or in retirement after the owner’s 60th birthday, when it will be available tax-free.
Withdrawals before that date will lose the bonus and attract a 5% charge.
Income tax payers
Mr Osborne announced that from 2017/18 the Personal Allowance, the amount you can earn before you start to pay tax, will rise to £11,500.
In addition, the higher rate tax band will increase to ensure that no one earning less than £45,000 per year will pay tax at a rate of 40%.
In addition to the cut to Corporation Tax to 19% in 2017 it will be cut further to 17% in 2020.
However, there was no change announced the unpopular dividend tax, which will hit many smaller businesses.
Mr Osborne announced that from 6th April 2016, just three weeks away, the headline rate of Capital Gains Tax (CGT) would be cut from 28% to 18%; for basic rate tax payers it will be cut from 18% to 10%.
The ISA limit will increase from £15,240 to £20,000 from April 2017.
Despite the rumours leading up to the Budget no fundamental changes were announced to the system of tax-relief, tax-free cash at retirement or the amount you can pay into your pension.
Most commercial property investors
It was announced that the rates of Stamp Duty payable on the purchase of commercial property will be changes to a ‘slice’ based system. The changes will mean 90% of commercial property purchasers will pay a lower rate of tax.
The rate of fuel duty will remain unchanged, despite falls in the cost of petrol and diesel.
The self-employed (providing you don’t contract to the public sector)
Mr Osborne announced that from 2018 Class 2 National Insurance contributions would be abolished.
Contractors to the public sector
Mr Osborne announced that he would place a duty on the public sector to ensure that contractors working through Personal Service Companies pay the correct level of tax.
Tax avoiding companies
The Chancellor announced wide ranging measures to clamp down on larger companies trying to avoid paying tax. He anticipates this will raise around £12 billion.
Soft drinks companies
In a surprising move Mr Osborne announced a new sugar tax to be introduced in two years time, which had an immediately negative impact on the share price of the firms who will be hit.
Buy to Let investors
The changes to CGT will not apply to Buy to Let investors, who will continue to pay the old rate.
1950s born women
No mention was made by Mr Osborne of the plight of women born in the 1950s who have faced increases to their State Pension age.
Were you a winner or a loser?
We’d love to hear what you think about the Budget, were you a winner or a loser?
Why not leave us a comment below?
Feel free to call one of our IFAs today on 0115 933 8433, alternatively enquire online or email email@example.com