Rumours, Rhetoric and Reality – The UK Budget 2016

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Before the Chancellor rose to deliver his latest budget, speculation was rife about changes to many aspects of UK taxation:

  • No more pension tax relief
  • Capital Gains Tax rates to rise to income tax rates
  • The top rate of tax to fall to 40%

So what happened? – The introduction of a sugar tax and a major row about disability benefits, but was that all?

Frankly, no. The health of the UK economy has deteriorated significantly in the few short months since the Autumn Statement and a black hole has opened up in Government finances as a result.

There were many measures in the budget of direct interest to expatriate Britons and indeed anyone with any connections to the UK, financial or otherwise. The key changes were:

  1. The introduction of the “Pension ISA” – could this be the thin end of the wedge?
  2. A reduction in the rates of tax for Capital Gains
  3. The removal of the exemption from additional stamp duty for purchasers of multiple properties
  4. The abolition of Class 2 National Insurance Contributions with effect from 2018

As ever, when a UK Chancellor delivers a budget, there is a need to review your financial planning to ensure that you are not hit by the changes introduced. Speak to your AAM Financial Planner now to discuss the steps you need to take.

More details on these and other measures can be found on our UK Budget Update.

How they will impact you will be explored in detail at our next Wealth Solutions Seminar on 15th April 2016. Make sure you attend to find out about these changes!

Ian Black
Head of Wealth Solutions
AAM Advisory Pte Ltd

Source:
This article is an op-ed piece by Ian Black
Facts and data sourced from https://www.gov.uk/ 

Disclaimer:
This article is an op-ed piece from Ian Black. The views expressed in this article are those of the author and do not necessarily reflect the views of AAM Advisory Pte Ltd. This document/article should not be construed as an offer, solicitation of an offer, or a recommendation to transact in any securities/products mentioned herein. The information does not take into account the specific investment objectives, financial situation or particular needs of any person. Advice should be sought from a licensed financial adviser regarding the suitability of the investment product before making a commitment to purchase the investment product. Past performance is not necessarily indicative of future performance. Any prediction, projection, or forecast on the economy, securities markets or the economic trends of the markets is not necessarily indicative of future performance. Whilst we have taken all reasonable care to ensure that the information contained in this document is not untrue or misleading at the time of publication, we cannot guarantee its accuracy or completeness. Any opinion or estimate contained in this document is subject to change without notice. The above report may contain data obtained from third parties and as such we cannot guarantee the accuracy of this data.