Financial Planners have welcomed a “skillful” budget but warned it will hit higher earners.

Chancellor Jeremy Hunt has halved the tax-free allowance for dividends from £2,000 to £1,000 per year.

Changes to the inheritance tax (IHT) system could be a vote winner for politicians at the next election as IHT receipts continue to rise, according to Financial Planners.

Planners are reporting some client families under financial stress as borrowing soars during the pandemic.