9
Spring Budget 2017
Tax shelters
2017/18
2016/17
Venture Capital Trust up to
£200,000
£200,000
£1,000,000
£1,000,000
Enterprise Investment Scheme up to
£100,000
£100,000
Seed Enterprise Investment Scheme up to
£1,000,000
£1,000,000
Social Investment Tax Relief up to
Individual Savings Accounts (ISAs)
2017/18 limits:
Overall investment limit
£20,000
Junior ISA and Child Trust Fund limit
£4,128
The new Lifetime ISA From 6 April 2017 any adult under 40 will be able to open a new Lifetime ISA. They can save up to £4,000 each year and will receive a 25% bonus from the government for every pound they put in, up to the age of 50. Funds can be used to save for a first home worth up to £450,000 or for retirement. Various rules and restrictions apply. Pensions: Money purchase annual allowance The government will legislate in Finance Bill 2017 to reduce the money purchase annual allowance to £4,000 on and after 6 April 2017. This restricts the amount of tax relieved contributions an individual can make in a year into a money purchase pension, if they have flexibly accessed their pension savings.
Qualifying recognised overseas pension schemes (QROPS)
The government will introduce a 25% charge on transfers to QROPS. This charge is targeted at those seeking to reduce the tax payable by moving their pension wealth to another jurisdiction. Exceptions will apply to the charge allowing transfers to be made tax-free where people have a genuine need to transfer their pension, including when the individual and the pension are both located within the European Economic Area.
The overseas transfer charge will have effect for transfers requested on or after 9 March 2017.
The measure also widens the scope of UK taxing provisions so that, following a transfer to a QROPS on or after 6 April 2017, they apply to payments out of those transferred funds in the five tax years following the transfer.
Financial strain? Derick Heathcoat-Amory collapsed while delivering his Budget in 1960
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