Spring Budget commentary: UK ISA, Child Benefit, CGT and NI reduction

Published  06 March 2024
   2 min read

Justin Corliss, Technical Manager at Royal London, said:


"To what extent the new increased ISA allowance will help UK listed companies attract greater investment remains to be seen. However, an additional £5,000 to the savings limit, taking it to £25,000, will be welcomed by those who are able to use their full ISA allowance. However, for the average saver, contributions are already well below the current limit, so the vast majority of people won’t see any difference."

Increase in Child Benefit thresholds

"The increase in the child benefit thresholds will be a welcome relief for many families. With rates frozen for 11 years and recent wage inflation, the value of the threshold has decreased significantly in real terms. While welcome, it’s currently unclear how the longer term plan to focus on household rather than individual income will be achieved."


"The reduction in the higher rate of CGT for residential property disposals from 28% to 24% will be welcomed by those impacted. However, with no change to the scheduled reduction in the CGT exempt amount from £6,000 to £3,000 from 6 April 2024, the impact of this measure will be somewhat diluted."


"With NI rates consistent across the UK, a second reduction in a matter of months is an obvious way for the Government to reach all of those in employment, in particular lower earners.

"This will obviously not be as popular a decision among pensioners as income tax cuts may have been, as only those who are working and under State Pension age pay National Insurance.

"While salary sacrifice to maximise pension contributions will remain very tax efficient, the changes in NI may reduce the amount going into pensions."

For further information please contact:

Neil Cameron, PR Manager

About Royal London

Royal London is the largest mutual life, pensions and investment company in the UK, and in the top 30 mutuals globally, with assets under management of £162 billion, 8.6 million policies in force and over 4,200 employees. Figures quoted are as at 31 December 2023. Learn more at royallondon.com.