Budget 2016 - personal announcements

The Chancellor George Osborne has delivered his Budget statement to the House of Commons on Wednesday 16 March 2016.

Here’s our summary of the main announcements affecting personal finance:

Personal allowance 

The tax-free personal allowance will increase to £11,500 from April 2017. The threshold at which people pay 40% tax will rise to £45,000.

Help to Save Scheme 

A new savings scheme for lower-paid workers will be introduced, worth up to £1,200 over 4 years.

Excise duties

  • Fuel duty will be frozen for the 6th year in a row.
  • Duty rates on beer and cider will be frozen this year.
  • Excise duties on tobacco are set rise by inflation.

Lifetime ISA allowance

A lifetime ISA will be introduced to save for long-term retirement or to buy your first home. Adults under 40 will be able to save £4,000 each year with savers receiving a 25% bonus from the government.

The total ISA limit saved each year will also increase from £15,240 to £20,000 from April 2017.