Our December 2018 UK release includes updates announced in Budget 2018. The savings, pension, and tax rules in our UK release of Voyant Adviser and AdviserGo have been updated to account for the following changes for the 2019/2020 tax year.
Updates include increases to the personal tax-free allowance and the higher-rate tax threshold
- Pensions - the Lifetime Allowance is increasing to £1.055m
- ISA savings for children - the Junior ISA allowance is increasing to £4,368
The personal tax-free allowance is being increased
The personal allowance will increase by £650 in April 2019, to £12,500.
Higher-rate income tax threshold to rise to £50k
The earnings threshold at which you’d need to pay the higher rate of tax (currently 40%) is going up to £50,000, from £46,351.
Pensions tax relief – no change
There were no changes to pensions tax relief rates and allowances.
The Lifetime Allowance
The Lifetime Allowance is due to rise by 2.4% to £1,055,000 in 2019 in line with September’s consumer price index (CPI) inflation figure.
ISA (Individual Savings Account) allowances for 2019-2020
The Junior ISA allowance will get an inflationary increase from April 2019 to £4,368.
There is no change to the adult ISA limit, which stays at £20,000.
Capital gains tax allowance is up
The capital gains tax allowance will increase by £300 to £12,000 from April 2019.