Among the measures announced in the Budget on 16 March of particular relevance for financial services are:

  • the introduction of the lifetime ISA from April 2017, which will enable anyone under the age of 40 to invest up to £4,000 per year before their 50th birthday and receive a 25% bonus from the government. The savings and bonus can be put towards a house worth up to £450,000, and each individual has their own allowance. Alternatively, all savings will be tax free if taken out after the investor’s 60th birthday;
  • a change to the “excluded entities” test for the purposes of the bank levy, so that certain entities can undertake additional activities and still fall outside the tax;
  • recommendations in the final review of claims management company (CMC) activity, that call for a swathe of regulatory changes, including that all CMCs should be re-authorised, that those carrying on “controlled functions” within them be subject to individual accountability and requiring them to record all calls;
  • recommendations for the role and remit of the Financial Policy Committee, including the changes the Bank of England and Financial Services Reform Bill will bring; and
  • further consultation on public financial guidance, open until 8 June

(Source: Key budget implications for financial services)