As widely expected, Boris Johnson won the race to 10 Downing Street, making him the next Prime Minister. During his campaign, Johnson made various pledges with regards to personal finance. Here are just some of his promises.
Higher-rate income tax threshold
Johnson promised to raise the 40% higher rate income tax threshold from £50,000 to £80,000. According to the IFS, this will likely benefit roughly the top 10% of earners. With this in mind, Johnson has also hinted at increasing the point at which national insurance contributions start in order to benefit lower earners.
Pension tax relief
Johnson has also pledged to review the Lifetime Allowance crisis currently engulfing the NHS. Senior doctors have reportedly tried to avoid steep pension tax bills by refusing to take on extra shifts. These extra costs to doctors have been caused by reductions to the tax-free allowance for people earning over £150,000 annually. The Department of Health and Social Care have proposed flexibilities in the scheme so GPs and high-earning consultants can opt to pay less into their pension to eliminate the risk of being hit by annual allowance charges.
Stamp duty overhaul
Brexit-related uncertainty has certainly impacted the property market so there’s no surprise that stamp duty emerged as a potential area for reform under a Johnson government.
Johnson has mentioned the scrapping of the tax on homes worth less than £500,000, saving buyers as much as £15,000.
The changes our new PM proposed are unlikely to be introduced overnight. We will keep you updated on any changes.