A new Lifetime ISA to help people under the age of 40 to either save for a home or for their retirement is to be created. Help to Buy ISA account holders will be able to roll it into the new Lifetime ISA.
The ISA limit is to be increased to £20,000 per year – up by about £5,000.
He confirmed, as had been reported in the last seven days, that plans to change pensions tax relief had been shelved after no consensus was reached. But the Lifetime ISA is likely to be seen as an alternative measure to some of the previously anticipated moves including the so-called Pensions ISA.
The Chancellor also revealed that Capital Gains Tax and corporation tax are both to be cut.
The Chancellor also revealed:
• From April next year tax-free personal allowance to be raised to £11,500
• From April next year he is going to increase the Higher Rate threshold to £45,000
• A stamp duty cut for small businesses on commercial property
• A big increase in rate relief for small businesses – 600,000 small businesses will pay no rates at all
Top tweets about the major announcements
Osborne will introduce new Lifetime Isa as pension alternative#Budget2016 @FPTodayNews
— Kevin O'Donnell (@FPT_Kevin) March 16, 2016
[With the #LifetimeISA] You don’t have to choose between saving for your first home, or saving for your retirement pic.twitter.com/sa89vZMSsQ
— HM Treasury (@hmtreasury) March 16, 2016
The headline rate of Capital Gains Tax currently stands at 28%. Today I am cutting it to 20% #Budget2016 pic.twitter.com/Kq5ZlVirfE
— HM Treasury (@hmtreasury) March 16, 2016
Corporation tax will be cut to 17% by Apr 2020#Budget2016 @FPTodayNews
— Kevin O'Donnell (@FPT_Kevin) March 16, 2016
Chancellor: By April 2020 it [corporation tax] will fall to 17% #Budget2016 pic.twitter.com/fNKHir3awM
— HM Treasury (@hmtreasury)Commercial property stamp duty rates changes at midnight, great news for SIPPs and SSAS purchases. #Budget2016
— Claire Trott (@Claire_L_Trott) March 16, 2016