Spring Budget: Tax efficient investment remains attractive


  • Date: 08/03/2017
Spring Budget: Tax efficient investment remains attractive

The Spring Budget has passed and for most investors the only change of any significance is a reduction in the level of tax free dividend income.  Whilst relatively small, it marks a further step along a path of increasing tax levies on invested wealth. 

For most investors this encourages saving in pensions (£40,000 each, subject to income taper) and Individual Savings Accounts (£15,240, increasing to £20,000 from 6 April 2017).  Savers benefit from a combination of attractive tax reliefs that include tax free income and growth.  Long term savers who fail to take up these allowances will see an increasing part of the return lost in income and capital taxes over the years.  Higher rate tax payers will see 32.5% of their dividend income lost in tax, after the reduced £2,000 allowance, and 20% of their gains, after the £11,300 exemption (in 2017/18).

This Budget highlights the need to continue to save in tax efficient investments.

Phil Cook
Private Client Partner

Opinions, interpretations and conclusions expressed in this document represent our judgement as of this date and are subject to change. Furthermore, the content is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or a solicitation to buy or sell any securities or to adopt any investment strategy.

Thomas Miller Investment is the trading name of the businesses in the Thomas Miller Investment Group. This note has been issued by Thomas Miller Wealth Management Limited which is authorised and regulated by the Financial Conduct Authority (Financial Services Register Number 594155) and is a company registered in England, number 08284862