From the Budget 2017
The government is committed to supporting savers at all stages of their lives. Recent reforms mean that now 98% of adults pay no savings tax. The government has almost doubled ISA limits since 2010 and will introduce the Lifetime ISA on 6 April this year. The Lifetime ISA allows younger adults to save up to £4,000 each year and receive a generous bonus of up to £1,000 a year on these contributions, which can be withdrawn tax-free to put towards a first home or when they turn 60.
NS&I Investment Bond final rate – The Budget confirms the rate on the NS&I Investment Bond announced at Autumn Statement 2016. The Investment Bond will offer a market-leading rate of 2.2% over a term of 3 years and will be available for 12 months from April 2017. The Bond will be open to everyone aged 16 and over, subject to a minimum investment limit of £100 and a maximum investment limit of £3,000. At £3,000 the investment limit is enough to cover all the savings of over half of UK households. This will support savers who have been affected by low interest rates.
Master trust tax registration – The government will amend the tax registration process for master trust pension schemes to align with the Pensions Regulator’s new authorisation and supervision regime. This will help to boost consumer protection and improve compliance.