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By Wesleyan

Budget briefing: Talking up tax cuts

financial planning
financial wellbeing
4 min
Man in office sat at desk with paperwork and laptop while using tablet

In any election year, the Chancellor comes under pressure to make announcements that will boost their party in the opinion polls.

Before today’s Budget, Jeremy Hunt was open about his desire to cut taxes, but also that the flatlining economy and his own fiscal rules didn’t leave him much room to manoeuvre.

So, do the policies announced in spring budget amount to a Budget bonus for doctors, dentist and teachers?


The most widely trailed of today’s announcements was a 2% cut to National Insurance (NI) for employed people, which falls from 10% to 8% on earnings from £12,570 to £50,527.

The Chancellor said that would be worth £450 a year to the average employed person and £750 to higher rate taxpayers.

He also announced a 2% Income Tax cut for the self-employed, which includes many associate dentists, supply teachers and locum doctors, in a move he said was worth £350 to the average self-employed person.

The move comes after NI rates were cut by 2% for employed people and 1% for the self-employed barely three months ago.

But there was no action on Income Tax or Inheritance Tax.

Jonathan Halberda, Specialist Financial Advisor at Wesleyan Financial Services, said: "This will put more money back into workers’ pockets, helping them meet their day-to-day outgoings, but also to save and invest.

"However, the fact that this reduction only applies to employee contributions will keep the pressure on employers, which are still facing rising operating costs, including staffing costs. We would have liked to see some relief extended to them too."

Savings and investments

The Chancellor also announced an expansion of Individual Savings Accounts (ISAs), which are designed to encourage more people to save and invest without paying any tax on the profits.

A new ‘British ISA’ will provide an extra £5,000 tax-free allowance for UK investments – on top of the existing £20,000 allowance.

Quite how this will work in practice remains to be seen, but it comes after a relaxation of ISA rules in November which gave the flexibility to open accounts with multiple ISA providers and make limited transfers between ISAs.

Our research found that would encourage almost a third of UK adults to invest more money into ISAs.

Nick Henshaw, Head of Intermediary Distribution at Wesleyan Assurance Society, said: "As usual, the devil will be in the detail of today’s Budget.

"However, anything that can help make ISAs an even more attractive option for saving and investing is to be welcomed.

"A ‘British ISA’ will effectively increase the ISA allowance by £5,000 and builds on the ISA reforms already planned for April at a time when so many other tax allowances remain frozen.

"We will eagerly await more information on how it will be administered."

For anyone lucky enough to own multiple properties, the higher rate of Capital Gains Tax for residential property disposals will be cut from 28% to 24%.

The lower rate will remain at 18% for any gains within the basic rate band and Private Residence Relief will continue to apply.

Cost of living

The Chancellor closed a loophole whereby some families would lose their Child Benefit when they began earning more, while others didn’t.

Under the old rules, when one parent was paid more than £50,000, their Child Benefit was gradually withdrawn, and removed altogether once their earnings topped £60,000.

But it created a situation where families where two parents were earning £49,999 each would still receive Child Benefit, while families where one parent earns £60,000 and the other isn't working would not receive anything.

Now the Chancellor will change the rules so eligibility is based on household income, not an individual's income - but not until April 2026.

In the meantime, he increased the threshold – which had been unchanged since 2013 –  to £60,000, while also increasing the upper limit to £80,000.

It’s a benefit worth £24 a week for one child and £15.90 for each additional child.

He also announced a one-year extension to the 5p per litre cut to Fuel Duty, which was first introduced in the 2022 Budget and has remained in place ever since.

Iain Stevenson, Head of Dental and Education at Wesleyan Financial Services, said: "Teachers in particular will welcome this move on Child Benefit, though it will not come into effect for two years yet.

"Still, many teachers face very real cost of living pressures and this will only help, when it finally materialises."


In a move to boost business investment, the Chancellor extended the Full Expensing tax break that allows firms to deduct investments in equipment and premises from their profits, so they pay less Corporation Tax.

That will be extended to include leased assets “as soon as it’s affordable”.

At the same time, the VAT registration threshold was increased from £85,000 to £90,000.

Iain Stevenson continues: "Expanding full expensing is a positive move for practices at a time when technology is constantly advancing and patients’ expectations are increasing.

"Leasing can be a less risky, more cost-effective way for practices to access the equipment that can enable them to expand the services they offer, including capitalising on the opportunities that private cosmetic work can bring.

"Increasing the VAT threshold will also be welcomed by practices who want to offer more cosmetic treatments, which has been such an important driver of growth in the industry."

Wesleyan Financial Services Ltd is authorised and regulated by the Financial Conduct Authority.

Tax treatment depends on the individual circumstances of each client and may be subject to change in future.

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