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Back in the day: May 1990

Back in the day: May 1990

This week, we head back to May 1990, just weeks after John Major gave his Budget speech.

The May 1990 edition of Money Management published its much-loved with-profits survey. The product itself is no longer as popular as past years, and looking back 25 years, it’s clearer why. The results showed the highest 10-year term with-profits fund stood at £8,985, while this month’s survey showed it was £7,830.

The magazine also heavily focused on the Budget speech, which saw the then-chancellor increase the personal allowance by nearly 8 per cent. For taxpayers under the age of 65, it was £3,005. In 25 years it has gone up 250 per cent to the current £10,600 level.

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The Budget also saw the announcement of the tax-exempt special savings account (Tessa), which was eventually phased out and replaced by the Isa.

Annuity rates for a 65-year-old male in May 1990 was £1,211 from London Life with a purchase price of £10,000. And a copy of Money Management would have set you back £2.85.

Elsewhere…

• Boris Yeltsin was elected president of the Russian Republic

• Inflation levels stood at 9.4 per cent

• France banned British beef and live cattle imports amid fears of BSE spreading

• East and West Germany signed a monetary union treaty in advance of the unification five months later

• Vogue by Madonna was the number 1 single in the charts.

More Back in the day…

April 1986