Advertising Feature A budget for growth? Highlights of the Spring Budget 2023. In the days leading up to the Budget, the general expectation was that the primary focus of the Chancellor would be on encouraging long-term sustainable growth and continuing economic support for those that needed it, especially in relation to energy costs, while maintaining financial stability. By way of a short recap, here are some of the highlights from the announcement in relation to pensions, investments and taxation: Increases to the standard Annual Allowance (AA): The annual limits on tax-relieved pension savings have been raised, providing greater scope for saving into pensions moving forward. The standard Annual Allowance has been increased from 40,000 to 60,000, giving an individual more opportunities to save into pensions with tax benefits. Increases to the Tapered Annual Allowance: In addition, the tapered Annual Allowance now starts when an individuals Adjusted Income reaches above 260,000. Adjusted income is, very simply, total taxable earnings from all sources, plus pension contributions made in the tax year. An individual is fully tapered when this amount reaches 360,000 or above, with the lowest AA one can have now standing at 10,000, even if fully tapered. This has been increased from 4,000 which is positive. Increases to the Money Purchase Annual Allowance: For those that have accessed pension benefits flexibly before (via flexi-access Drawdown, or UFPLS), the Money Purchase Annual Allowance meant that they could only place 4,000 a year into a defined contribution pension and receive tax relief. From the 6th April 2023, this has increased to 10,000. Removal of Lifetime Allowance (LTA) Charges: Starting from 6th April 2023, the Lifetime Allowance (LTA) charges will be abolished, providing more flexibility for your pension planning. The LTA charge will be 0% in the 2023/24 tax year and the legislation will be abolished from the 2024/25 tax year, allowing individuals to maximise pension benefits without an additional 25% taxation moving forwards once the LTA is breached. ISA and Capital Gains Limits: In the Autumn budget, the ISA investment limit and the 0% starting rate band for savings income was confirmed that they remain at their current levels of 20,000 and 5,000 respectively, providing stability and continuity for certain investments outside of pensions. However, the Capital Gains Allowance has been reduced from 12,300 to 6,000 in the 2023/24 tax year and will further reduce to 3,000 in the 2024/25 tax year, highlighting the importance of careful tax planning. Dividend taxes have also been reduced. What could these changes mean for you? At Lewington Wealth Management we are always happy to help navigate you through these significant changes. Therefore, please feel free to get in touch for an initial consultation, with no obligation. Call us on 01793 741246 The value of an investment with St. Jamess Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested. The levels and bases of taxation and reliefs from taxation can change at any time and are dependent on individual circumstances. 01793 741246 lewingtonwealth@sjpp.co.uk lewingtonwealth.co.uk 2 Watts Barn The Old Dairy, Badbury Swindon, Wiltshire SN4 0EU Lewington Wealth Management Ltd is an Appointed Representative of and represents only St. Jamess Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the Groups wealth management products and services, more details of which are set out on the Groups website www.sjp.co.uk/products. Lewington Wealth Management Ltd is registered in England and Wales, Number 04290504. Registered Office: St Jamess Place House, 1 Tetbury Road, Cirencester, United Kingdom, GL7 1FP. The St. Jamess Place Partnership and the titles Partner and Partner Practice are marketing terms used to describe St. Jamess Place representatives. SJP Approved 13/06/2023