In what is set to be the last Budget before Britain leaves the European Union, chancellor Philip Hammond agreed to a series of new spending increases, claiming that the era of austerity was nearing an end.
Here’s a roundup of the Winners from the Budget and what it means for your money.
Tax Payers – The basic rate was raised to £11,850 in April. That will now be boosted to £12,500. At the same time, the higher rate will go up from £46,350 to £50,000. Raising these tax thresholds is an effective tax cut.
What does it mean for your money?
26-30 Railcard – A new 26-30 year-old railcard will be made available by the end of 2018. The Chancellor says it will save up to 4.4 million young people a third on their rail fares.
50p ‘Brexit’ coin – A special 50p coin to commemorate Britain leaving the EU will be issued next year.
Broadband – The Chancellor is expected to announce extra funding for broadband connectivity to households in rural areas. This comes in the form of a £250 million spending pledge for the most remote parts of the UK to gain access to super-fast internet connections.
Income Tax – Mr Hammond has announced that plans to raise income tax thresholds for millions of workers will be brought forward. The tax-free earnings threshold will be raised to £12,500 for the tax year beginning April 2019. The higher rate threshold will be raised to £50,000 from £46,350.
Fuel Duty – Duties on petrol, as previously announced, have been frozen for the ninth year in a row. Mr Hammond says this will save the average car driver over £1,000 and the average van driver £2,500.
Lettings relief – The Chancellor has announced that from April 2020, the government will limit lettings relief to properties where the owner is in shared occupancy with the tenant, and reduce the final period exemption from 18 months to 9 months.
Help to buy – The help to buy scheme which was expected to end in 2021 but has been extended until 2023. Kevin Roberts, director of Legal & General Mortgage Club comments: “Today’s extension of the Help to Buy scheme to 2023 has provided much-needed clarity over the scheme.
National Living Wage – The national living wage will increase from £7.83 to £8.21 from April 2019.
More including Digital services tax, employment, housing, pensions, plastic, social care & universal credit can be found here – https://www.moneywise.co.uk/news/2018-10-29/autumn-budget-2018-your-money-roundup
Source – Moneywise. Read the full articles here