Spring Statement 2018

In this article, Brewin Dolphin react to Chancellor Philip Hammond's Spring Statement 2018. As promised, the chancellor resisted the temptation to tinker with tax, savings or pensions. However, he announced a number of consultations and calls for evidence designed to focus on how the tax system can be improved.

Key points include:

• The OBR has increased its GDP growth forecast for 2018 to 1.5 percent from 1.4 percent previously.
• In the absence of any major tax announcements, it is important to remeber to make the most of tax allowances that already exist.
• Transferring wealth while you are alive can have a transformative effect on your family’s life and reduce an inheritance tax (IHT) liability.
• The level of dividends individuals can receive tax free will be cut from £5,000 to £2,000 from 6 April 2018.1 If you are potentially affected by the reduced allowance, you should talk to a tax expert urgently.