The Budget – 2020

This week the first Budget announcement of Boris Johnson’s majority government was given by his newly-appointed chancellor Rishi Sunak.

As expected, the Chancellor focused heavily on the relief package he’ll be putting in place to help the economy get through the coronavirus outbreak. With a £30bn detailed support promise unveiled to support people affected and hospitals.

With a wide-range of topics covered, the personal finance world did get coverage, although the allowance thresholds that have been increased in recent Budgets weren’t included.

What were the main personal finance talking points?

  • The income tax allowance has already been frozen at £12,500. This is the amount you can earn before you start to pay income tax.
  • Also frozen is the £50,000 threshold at which people start to pay the higher 40% rate of income tax.
  • For those on the highest incomes, it was announced that the minimum level to which the annual pension allowance can taper down will reduce from £10,000 to £4,000 from April 2020. This reduction will only affect individuals with total income (including pension savings) over £300,000.
  • The adult ISA annual limit for 2020/21 will again remain unchanged at £20,000.
  • Good news if you’re adding to your children’s’ nest eggs, as the annual subscription limit for Junior ISAs and Child Trust Funds have been increased from £4,368 to £9,000 in the 2020/21 tax year.

Talking to the experts

If you feel like you’ve been affected by the Budget and would like to know more about your savings and investment options, speaking with a financial adviser can help.

At NAHT Personal Financial Services they understand everyone’s financial journey through life is different, which is why they offer a personalised approach to walk you through it.

Everything will be explained to you in clear and honest terms. They’ll make sure you’re fully happy with any decisions made and won’t pressure you to act on the advice provided.

It doesn’t cost anything to see if NAHT Personal Financial Services could potentially help you with your future plans. Call 0800 121 4596 for a free initial chat to see if you could benefit from financial advice.

You can also sign-up here to insightful monthly emails from Skipton, exclusively produced for NAHT members. 

NAHT Personal Financial Services is a trading name of Skipton Building Society. Skipton Building Society is authorized by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, under registration number 153706, for accepting deposits, advising on and arranging mortgages and providing Restricted financial advice. Principal Office, The Bailey, Skipton, North Yorkshire, BD23 1DN.