Recent budgets have increased the tax burden on those with very significant wealth, such as owners of prime property and non-UK domiciled individuals. However the 2017 Spring Budget has focused on a wider group, perhaps best described as the affluent. This includes high earning company directors, investors with more than £50,000 in portfolio savings, the self employed and those retiring abroad.
The reduction in the tax free dividend allowance from £5,000 to £2,000 from April 2018 could see a tax increase of just over £1,100 per annum. The one per cent increase in class 4 national insurance for the self employed from April 2018 and a further one per cent a year later could add just under £1,000 per annum in further contributions.
Those retiring abroad could see a 25 per cent charge on the value of their pension if they decide to transfer into an overseas scheme. While this is only likely to affect those leaving the European Economic Area for now, post Brexit this could also impact on those retiring within Europe.