Chancellor Jeremy Hunt may have pulled a very fat Budget rabbit out of his hat when he told a packed House of Commons that the lifetime allowance would be scrapped in a future Finance Bill.
So what might have slipped under the radar as the chancellor hailed the fact that the UK has narrowly avoided a recession, and those anticipated droves of over-50s are flooding back to the workplace now their pension pots have been given a reprieve in this "budget for growth"?
You've come to the right place. Here are nine nuggets dug out of the depths of the documents:
1) National Savings & Investments
The NS&I has been given a net financing target of £7.5bn in 2023-2024, within a range of plus or minus £3bn. This will reflect NS&I's requirement to balance the interests of savers, the taxpayer and the wider financial services sector.
It has also raised £0.8bn through sales of the green bond since its launch in October 2021.
2) Green gilts
Leading on from the NS&I's green bond, the UK government plans to issue £10bn of green gilts in 2023-24, albeit "subject to demand and market conditions".
The aim is to reopen the two existing green gilts, which have built up to £18.5bn for the one maturing in 2033, and £12.9bn, for the one maturing in 2053.
3) Public sector receipts
Public sector receipts expected for 2023-2024 are expected to be around £1,058bn. The biggest contributor is income tax, bringing in £268bn, followed closely by VAT at £187bn and National Insurance contributions at £172bn. Council tax is currently at £44bn but could rise now that the government has allowed councils to raise rates by up to 5 per cent.
4) Save as you earn
The government is going to launch a call for evidence on non-discretionary tax-advantaged share schemes. This will affect share incentive plans and save-as-you-earn schemes. According to the Budget documents this will "consider opportunities to improve and simplify schemes".
5) Social investment tax relief
SITR will be allowed to expire in April 2023. New investments made on or after April 6 2023 will no longer qualify for income and capital gains tax relief.
SITR was designed to increase the access to reasonably-priced investment capital by a range of eligible organisations which were struggling with established channels, and was a tax-incentive modelled on the enterprise investment scheme.
Its aim was to generate a positive social return (or ‘impact’) as well as a positive financial return. But, as reported by FTAdviser several years ago, it was failing.
6) Gilt issuance
The net financing requirement is forecast to be £246.1bn for 2023-24, which reflects in part gilt redemptions of £117bn and total gilt sales of £241.1bn
7) Help to Save
The help-to-save scheme will be extended for 18 months. The scheme, according to the government, is a type of savings account. It allows certain people entitled to Working Tax Credit or receiving Universal Credit to get a bonus of 50p for every £1 they save over four years.
8) Starting rate for savings income
The chancellor made a passing nod to Isa savers, stating that the annual subscription limit will be maintained at £20,000 for the 2023-24 tax year. But hidden in the Budget documents, the government also said the starting rate limit for savings income would be maintained at £5,000 for the next tax year.
9) VAT on fund management and financial services
The government's consultation on the proposed reforms of the VAT rules on fund management to improve clarity and certainty has closed. The government is considering the proposals with interested stakeholders and will publish its response in coming months.
Similarly, the Industry Working Group set up to consider the future of VAT and financial services has made its recommendations to government.
The Budget documents said: "The government will continue working with industry stakeholders to consider possible reforms to simplify the VAT treatment of financial services, with the aim of reducing inconsistencies and providing businesses with greater clarity and certainty."
simoney.kyriakou@ft.com
