Alastair Black, head of industry change at abrdn, has commented on today’s emergency budget.
“The changes announced included some good news for clients. In addition to the reversal to the NI rate, tax on dividend income will also be cut by 1.25% from next April, helping in particular retired clients living off savings income.
“Both these measures were introduced to help fund social care reforms.
“The cut in stamp duty for first-time buyers could also give advisers an opportunity to support wider family office planning, where their clients may want to help their family.”
Comments on the removal of the additional tax rate band, and tax simplification
“The removal of the additional rate tax band, along with the confirmation of the removal of taper relief on corporate tax, is a positive step forward in terms of simplifying the tax regime – something that will be welcome to advisers and their clients alike.
“The Chancellor said that the government wanted to carry out further simplification, and we hope that it now takes the opportunity to address, in particular, overly complex pension tax features that are a barrier to clients investing and saving for the future, such as the reform of the lifetime annual allowance and the money purchase annual allowance.
“What’s certain is that all of this change will, once again, be a significant opportunity for advisers to showcase their value – providing insight, and guidance to help clients understand what it means for their money. We look forward to the Scottish budget in the coming weeks, which will outline if or how these measures will apply in Scotland.
“For adviser businesses themselves, the cancellation of the planned rise in corporation tax will mean more opportunity to invest in their own future growth, and a further opportunity to address the advice gap.”
Comments on the announcement of new ‘investment zones’
“Advisers will be keeping a close eye on how the government’s plans for new investment zones develop.
“These could provide new opportunities for clients – but also for adviser businesses themselves.”
Find out more about abrdn.
Also, be sure to read our update right here on IFA Magazine.