The Budget and what it means for you
The November Budget was delivered to Parliament by Chancellor Philip Hammond last year, but the affects won’t be felt until the new financial year which is still a few months away. Below, we have highlighted 5 ways in which you may be affected:
1. Stamp Duty abolished for first-time buyers
This was the main feature of the Chancellor’s speech and benefits first-time buyers living in England, Northern Ireland and, for a while, Wales. Mr Hammond said the scrapping of stamp duty was with immediate effect and would apply to first-time buyers purchasing a home under £300,000. Wales has already set new rates to start in April and it will be up to Scotland and Wales whether they follow England’s example.
You can find out more about Al Rayan Bank’s range of Home Purchase Plans – Sharia compliant Islamic mortgage alternatives here
2. State pension rise
The Chancellor confirmed the 3% state pension increase from the new financial year in April 2018 which means the basic pension will increase to £125.97 a week. State pension increases are protected by the "triple lock", meaning future payments rise by whichever is the higher out of inflation, as measured by the consumer prices index, earnings growth, or 2.5%.
You can find more about The Islamic Pension Trust (IPT) a workplace pension scheme for Muslims, accredited for Sharia compliance by Al Rayan Bank here
3. Income tax relief
The personal allowance, the amount earned before income tax is paid, is rising from £11,500 to £11,850 from April 2018. This will affect nearly 26 million people who pay the basic rate of income tax in the UK. The higher rate of income tax (40%) threshold, which is paid by 5.2 million Britons, will rise from £45,000 to £46,350. This threshold is different in Scotland.
If you want to save money as a result of the income tax changes, you may wish to find out about Al Rayan Bank’s range of ethical, Sharia-compliant savings accounts. Find out more here
4. Tax free dividend allowance for small business owners cut
The tax-free dividend allowance introduced last year will be cut from £5,000 to £2,000 in April. This will affect owners of small businesses who pay themselves dividends alongside a small salary. It will also see a change for those with large portfolios of shares.
Al Rayan Bank provides a range of Sharia-compliant services specifically for businesses – including business savings and commercial property finance. Find out more here.
5. Minimum wage rise
The National Living Wage is due to rise by 4.4% from April 2018. This will raise the compulsory minimum wage for people over 25 years to £7.83 an hour.
Al Rayan Bank is a 'Living Wage Employer' which means we voluntarily pay our employees a 'Living Wage' (£10.20 per hour in London and £8.75 per hour elsewhere). Click here if you’d like to find out more.
YOUR HOME MAY BE AT RISK IF YOU DO NOT KEEP UP THE PAYMENTS ON YOUR HOME PURCHASE PLAN