Gemma Williams CFPTM Chartered MCSI, the Financial Planning Director at Uniq Family Wealth in Cardiff, tells FPT what she made of the announcements.

FPT: Which announcements are you pleased/disappointed to hear and why? Which was the most surprising?

Gemma: That the Government is retaining the pension tax free lump sum. There was discussion that the Chancellor might alter the rate at which pensions tax relief is earned but this was not mentioned but can see the introduction of the Pension ISA as being one step in that direction.

During a year of vast pensions overall what was announced today, the message of saving for the long term is still at the forefront of the Government’s mind but I am glad that there weren’t any wholesale changes to the rules involved.

FPT: Which part of the Budget do you think will come under closer scrutiny and grab the headlines in the next few days and why?

Gemma: The changes to the Capital Gains Tax rates was a big surprise. From a political point of view, I can see arguments that this move will favour the more affluent part of the economy fortunate enough to have vast wealth when this was a significant earner for the Treasury.

From a financial point of view, it will be positive for clients who hold vast capital gains. Also the Lifetime ISA will provoke discussion. I can see if being of use as part of a client’s wider financial planning, particularly for the children of our clients (as most of our clients are above the threshold age) and can offer flexibility in their savings approach, with the help of a boost from the Government.

I would not recommend that this is used as a substitute to an alternative workplace pension scheme, which could afford valuable long term contributions from their employer, which could boost pensions further. It will all depend on the needs of the clients and timescale involved but it looks to be a creative form of savings capitalising on the success of the launch of the Help to Buy ISA.

FPT: What do you think the main highlights of interest to Financial Planners and clients are and why?

Gemma: Our interest has to be in the total message and purpose of the budget- it is important we consider all aspects not just those that might relate to tax, savings or pensions. We don’t look at our clients situation this way and nor should we focus on the Budget in this way.

For instance, the current state of our economy and future growth prospects has a large impact on our client’s wealth and Financial Plans and the assumptions we set within them for the longer term. Not having an awareness of overall economic concepts could result in us using assumptions that are out of touch with the economy and therefore create a false picture.

I had approached the Budget from the angle of what does this mean for the underlying financial position of the clients, who for us are predominantly families and family businesses.

What was clear from this Budget was that the Chancellor was prepared to reward the working population including businesses with reductions in key tax rates and provides increases in tax available allowances (personal income tax allowance increase and more can be saved via ISAs) to improve their net income position.