M&g Plc · LSE:MNG
M&g — M&G Wealth — Spring Budget 2024 webinar
31 slides from M&g's conference presentation, March 2024
Slide 1: Spring Budget 2024
Spring Budget 2024 Change, consult and continue The information that follows is based on our understanding of current taxation, legislation and HM Revenue & Customs practice all of which are liable to change without notice. This is just for UK financial advice professionals.
Slide 2: Important information
This content is based on our understanding of current taxation, legislation and HM Revenue & Customs practice all of which are liable to change without notice. The impact of any taxation (and any tax reliefs) depends on individual circumstances. Where content includes case studies or examples these
Slide 3: Learning Objective
Learning Objective By the end of this session, you will be able to: Describe the impacts of the Chancellor’s 2024 Spring Budget on your clients’ financial planning
Slide 4: Pension Matters
Pension Matters
Slide 5: NO CHANGES! Under 1 month to LTA abolition
NO CHANGES! < 1 Month to LTA abolition
Slide 6: Pension Scheme Disclosure
Pension Scheme Disclosure UK / Costs & New International Investment Returns Business Ban split by 2027
Slide 7: Domicile and IHT Matters
Domicile and IHT Matters
Slide 8: Domicile Origin / Choice / Deemed
Domicile UK Income and Gains + Worldwide Remitted non-UK Income Income and and Gains Gains + Remittance Charge Origin / Choice / Deemed
Slide 9: Non-dom change 6th April 2025
Non-dom change REMITTANCE RESIDENCE BASIS BASIS 6TH April 2025
Slide 10: No IHT changes before 6th April 2025
Some of you may recognise this… UK domiciled? Excluded Property Trust YES NO (Offshore Bonds and OEICs) Client may Regular Do you need Give up need to Move to residence payments NO basedaccess regime: to your NO access to all NO consider required? original capital capital? life • Consultation to fol
Slide 11: Other IHT matters
Other IHT matters “ Grant of Agriculture & Credit” No Woodlands relaxation material Relief changes 6th April 2024 1st April 2024
Slide 12: Investment Matters
Investment Matters
Slide 13: British Savings Bond
British Savings Bond 6 things about them Three Year Guaranteed Terms NS&I Taxable? Fixed Interest Unknown Available - Early April 2024
Slide 14: ISAs
ISAs Main Limits Autumn Statement 2023 Unchanged changes wef 6th April 24 Lifetime ISA Fractional Shares Exit charge unchanged ASAP
Slide 15: Standalone UK Investments
Standalone £5,000 UK Investments • Equity • Bonds • Collectives • Gilts • Cash? Conditions: • Simplicity • TV IN / TV OUT
Slide 16: ISA subscriptions by income band and size
Chart 5: ISA subscriptions by income band and size of subscription in 2020 to 2021 15% 79% Of 10.8 m Source: www.gov.uk/government/statistics/annual-savings-statistics-2023/commentary-for-annual-savings-statistics-june-2023
Slide 17: Personal Tax Matters
Personal Tax Matters
Slide 18: Devolved Taxation
Devolved Taxation Edinburgh Non savings, Non Dividend Belfast only No income tax powers London Non savings, Non Dividend (Eng & NI) Savings Dividends Allowances (tax traps) National Insurance Cardiff Capital Gains Tax Non savings, Non Dividend Corporation Tax only
Slide 19: Property Taxes
Property Taxes Furnished Holiday Capital Gains Tax Multiple Dwellings Relief Lettings Regime Abolished 28% to 24% Abolished 6th April 2025 6th April 2024 SDLT Draft regs including Lower rate unchanged 1st June 2024 anti-forestalling to follow
Slide 20: Tax landscape
160,000 150,000 45% 140,000 130,000 120,000 (Personal Allowance) High Earner 110,000 100,000 90,000 Income £ 40% 80,000 Child Benefit 70,000 60,000 Child Benefit Tax landscape 50,000 40,000 20% 30,000 20,000 10,000 0 Effective rate of tax %
Slide 21: National Insurance
National Insurance Class 1 NI between £12,570 - £50,270 12% > 10% > 8% 27m c£900 pa Salary £10,000 £20,000 £30,000 £40,000 £50,000 £60,000 £70,000 NI Saving £0 £297 £697 £1,097 £1,497 £1,508 £1,508 Class 4 NI between £12,570 - £50,270 9% > 6% 2m c£650 pa Salary £10,000 £20,000 £30,000 £40,000 £50,00
Slide 22: Feeling the difference
Feeling the difference Salary £35,000 £70,000 £105,000 £140,000 2023/24 Tax £4,486 £15,432 £30,432 £49,203 NI 11.5%/2% £2,579 £4,730 £5,430 £6,130 Salary £35,000 £70,000 £105,000 £140,000 2024/25 Tax £4,486 £15,432 £30,432 £49,203 NI 8%/2% £1,794 £3,411 £4,111 £4,811 Saving £785 £1,320 £1,320 £1,320
Slide 23: HICBC
HICBC £50k to £60k £60k to £80k 1% per £100 1% per £200 c£3,094 Consultation – “Household Income” – April 2026
Slide 24: In Numbers
In Numbers Simon has adjusted net income of £80,000 and has three children that he claims child benefit for. Personal Allowance £12,570 @ 0.00% 0 Basic Rate £37,700 @ 20.00% £7,540 Net after tax Higher Rate £29,730 @ 40.00% £11,892 and HICBC £19,432 HICBC £3,094 £60,568 Simon (or someone on his beha
Slide 25: Tax Relief Modeller Tool
Tax Relief Modeller Tool ABOUT YOUR CLIENT What is the client's age? Scottish Tax Payer? Gift Aid (Gross am Employment income Benefits in Kind Taxable Self Employed Profits UFPLS (taxable element) Drawdown / Annuity Income State Pension Income Purchased Life Annuity Income BEFORE NEW CONTRIBUTIONS "
Slide 26: Allowances wef 6th April 2024
Allowances wef 6th April 2024 Starting Rate for Savings Up to £5,000 Capital Gains Tax AEA Dividend Allowance Personal Savings £3,000 £500 Allowance £500 / £1,000 Running unwrapped investments will involve more tax for more people
Slide 27: Learning Objective
Learning Objective By the end of this session, you will be able to: Describe the impacts of the Chancellor’s 2024 Spring Budget on your clients’ financial planning
Slide 28: M&G Wealth Tech Matters hub
oO M&G wealth Products» Funds & Solutions» © TechMatters~ Wealth Platform~ — Support » Adviser Award winning technical support for Financial Professionals News & Views NEW - LTA Transitional Tax Free Amount Tool > Last Updated: 5 Jan 24] 10 min read LTA Abolition - New allowances: LSA & LSDBA > Last
Slide 29: M&G Wealth - Tech Matters group
Go in| Q Search for posts in this group a aa Les Cameron Manager Joined group: Feb Pending posts Requests to join Manage group Recent iti, M&G Wealth - Tech Matters Home My Network M&G Wealth - Tech Matters iti Private Listed View activity Jobs © Messaging a a Notificatic
Slide 30: Thanks for your time
Thanks for your time Get in touch with your usual contact if you need further help.
Slide 31: M&G Wealth trademark and regulatory information
M&G Wealth is a trademarked brand of the M&G plc group, which includes 3 business divisions as follows: M&G Wealth Advice, provided by M&G Wealth Advice Limited, registered number: 08022795. Model Portfolio Services, provided by M&G Wealth Investments LLP, registered number: 0C305442. M&G Wealth Pla