Mr Hammond decided not to increase the ISA allowance in line with inflation although some other allowances have been increased. For example, the annual subscription limit for Junior ISAs and Child Trust Funds for 2018-19 will be uprated in line with CPI to £4,260.
However the starting rate for savings – the band of savings income that is subject to the 0% starting rate will be kept at its current level of £5,000 for 2018-19.
The lifetime allowance for pensions will increase in line with CPI, rising to £1,030,000 for 2018-19. However there appears no indication of a cutback in the £40,000 annual pension limit taxpayers currently enjoy.
On the Save As You Earn scheme the Treasury says that employees on maternity and parental leave will be able to take up to a 12 month pause from saving into their Save As You Earn employee share scheme, increased from 6 months currently. The change will take effect from 6 April 2018.
On life assurance and overseas pension schemes from April 2019, tax relief for employer premiums paid into life assurance products or certain overseas pension schemes will be modernised to cover policies when an employee nominates an individual or registered charity to be their beneficiary.