Member Article

A Saver's Budget

Following the Chancellor’s Budget statement, national IFA, pensions and employee benefits consultancy, LEBC Group welcomes the new incentives for savers in:

The Lifetime ISA for the under 40s; The increased ISA allowance, and The reduced tax rate for gains from investments going down from 28% to 20% and 18% to 10%.

Commenting on the changes Kay Ingram, Director of Individual Savings and Investments at LEBC said: “These reforms are very welcome news for savers. We especially welcome the new Lifetime ISA for the under 40s which will benefit from tax relief for those seeking to save for both their first home and for their longer term retirement. Too often we see younger employees not fully participating in their employer’s pension scheme, due to the need to save for house purchase. This new scheme will allow them to do both with the benefit of tax relief and will remove a perceived barrier to long term savings.

“Savers with substantial capital gains should also consider deferring realisation of some of those gains which are likely to exceed their tax free allowance, until after 6 April when the rates of tax will drop for both basic and higher rate taxpayers.”

This was posted in Bdaily's Members' News section by LEBC Group Ltd .