The Landlord Today team has written an article on what business consultancy Hargreaves Lansdown anticipates may be in Hunt’s speech in just nine weeks time.

The whole article can be read here, and outlines expectations and desired measures for the Spring Budget in the UK, which is scheduled for March 6.

Here are the key points:

Anticipated Measures:

  1. Inheritance Tax Cuts:
    • Inheritance tax cuts are expected to be back on the table, with discussions suggesting the possibility of axing the charge.
    • The need for reform in inheritance tax is highlighted, and potential changes may involve increasing nil rate bands and revisiting gifting allowances.
  2. Help for First-Time Buyers:
    • The government is reportedly considering measures to assist first-time buyers, addressing the challenges faced by younger buyers in the current market.
    • Possibilities include a new version of the Help to Buy scheme or initiatives to enable more buyers to access long-term mortgages with low deposits.
  3. Income Tax Cut:
    • A potential cut in the rate of income tax, such as reducing the basic rate from 20% to 19%, is speculated.
    • This measure could put more money in people’s pockets and have implications for pension tax relief.
  4. Fuel Duty Cut:
    • The potential reversal of the ‘temporary’ 5p cut in fuel duty, as indicated in the November OBR report, is discussed.
    • The challenge of such a measure is noted, considering that fuel duty has been frozen since 2011.

Desired Measures:

  1. Lifetime ISA Reform:
    • Calls for reforming the Lifetime ISA (Individual Savings Account) are made, emphasizing its potential to boost retirement prospects, especially for the self-employed.
    • Suggestions include reducing the early access penalty from 25% to 20% and increasing the age limit for opening a Lifetime ISA from 40 to 55.
  2. Bigger ISA Allowance:
    • A desire to see an increase in the overall ISA allowance is expressed, highlighting that it has not been raised since 2017.
    • Increasing the ISA allowance is seen as an opportunity to offset cuts to dividend tax and capital gains tax allowances and protect savers from income tax bills.
  3. Halt to Dividend Tax and Capital Gains Tax Threshold Cuts:
    • A call to halt the planned cuts to thresholds for dividend tax and capital gains tax is made to relieve pressure on investors and entrepreneurs.
    • The planned threshold cuts are considered significant, and halting them could align with the government’s growth agenda and encourage investment.

The Spring Budget is seen as an opportunity for Chancellor Jeremy Hunt to announce pre-election giveaways and address various economic concerns, including the cost-of-living crisis and housing market challenges.