Stamp Duty Land Tax

The temporary Stamp Duty Nil Rate Band of £500,000 has been extended to last until the 30 June, relieving some pressure on those trying to rush through completion to make the most of this.

They will also step this down to £250,000 for three months, to the end of September 2021 before returning back to the original £125,000.

Mortgage Guarantee Scheme

The government will back mortgages for people buying a property with only a 5% deposit. This has the intention to help first time buyers buy property. It is intended to help buyers secure a 5-year fixed rate mortgage.

The scheme will run until the 31 December 2022.

Changes to Duties

The normally customary increase in duty on fuel and alcohol has not been applied this year meaning the price of a drink in the pub will not change, if you can remember how much these used to be!

Universal Credit

Government will continue to provide additional £20 uplift of Universal Credit for a further six months.

National Living Wage

The National Living Wage has been increased from £8.72 per hour to £8.91, more details can be found on the gov.uk website.

Help to Buy equity loan scheme

This will continue to run from April 2021 to March 2023 offering first time buyers with a 5% deposit a loan of up to 40% of the value of a new build home interest free for 5 years.

This encourages the building of new homes and can be used in conjunction with the help to buy ISA. After April 2023 there is no intention to introduce anything similar.

Lifetime ISA

The lifetime ISA introduced in April 2017 remains in place offering an alternative to a pension and into which Help to Buy ISA’s can be rolled.

It is available to anyone under 40. The Government will give you £1 for every £4 you save up to age 60, maximum of £4K per annum savings.

Accounts are limited to one per person so you could each save and buy a property jointly (after 12 months of saving to retain the benefits) or you can continue to save and draw it all tax free after age 60.

If you draw prior to this, you lose the bonus and pay around 6/7% extra in charges. You can find the HMRC factsheet here.

Other items:

  • Limit for contactless payments to increase to £100
  • Pension life time limit remains at £1,073,100
  • Cap for ISA savings accounts remains at £20,000
  • HMRC will be launching a raft of further reviews of the tax system, which may lead to recommendations for what will apply for the 2024 budget and there after
  • The self-employed and those not eligible for SSP will have faster access to Employment and Support Allowance benefits if affected by Coronavirus, with access to benefits from day 1 not day 8
  • New tax on plastic packaging products where less than 30% is made from recycled material
  • Further reducing single-use plastic waste through the tax system being considered
  • HMRC will be a preferred creditor in any insolvency arrangements from 6 April 2020 – this will continue.
There will likely be more we will update you with in the coming weeks, which we will keep you up to date with.
If you would like any advice or further information on the above, please get in contact with one of our team by calling 01474 853 856 or emailing enquiries@a4g-llp.co.uk.

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Josh Curties

BA (Hons) FCA

Partner & Principal Adviser

01474 853856

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