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Listening to, or reading, the 2016 budget speech in full, no one could have been left in any doubt that the Chancellor of the Exchequer intended this to be a budget for the next generation. In fact, with the ‘next generation’ mentioned 18 times and the ‘future’ mentioned 12 times one might have been forgiven for wondering if there was anything in it for current generations.

The proposed sugar tax may have taken the headlines but delve into the detail of the budget and there was some good news for investors. Key points include:

An increase in the ISA limit to £20,000 with effect from April 2017.

A new lifetime ISA which is designed to help those aged under 40 save towards a pension or house purchase. Again this comes into effect from April 2017 and is subject to a limit of £4000 per annum with the government adding £1 for every £4 saved. Some of the details are subject to further consultation so we will bring you further news on this new investment product as it becomes available.

A cut in capital gains tax (CGT) with the headline rate falling from 28% to 20% and the CGT rate for basic taxpayers falling from 18% to 10%. There are some transitional provisos so those looking to realise capital gains would be advised to take professional advice before acting.

A CGT rate of 10% on long-term investment in unlisted companies, subject to a lifetime maximum of £10 million.

A budget wouldn’t be a budget without some change in personal taxation and this one was no different. George Osborne announced a rise in the basic tax threshold to £11,500. The higher rate tax threshold has also been increased to £45,000 from April 2017 which the Chancellor estimates will take over half a million people out of the higher rate band.

If you’re looking to create an investment portfolio, or if your situation has changed and you may therefore need to review your existing portfolio, contact Beckworth by using one of the links on our website.