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Savings and investments

green tick box Pensions – No further reductions in the annual allowance, a small increase in the lifetime allowance and no reduction in the tax free cash limits.
green tick box A small increase in the Junior Individual Savings Account (ISA) and Child Trust Fund limits of up to £4,260 for 2018/2019.
green tick box Basic State Pension to increase by 3% in April 2018, an increase of between £3.65 and £4.80 per week.
No increase in the annual ISA allowance, frozen at £20,000 for 2018/2019.


Chancellor Philip Hammond decided to avoid making any significant changes to the savings and retirement planning landscape.

A summary of the main changes are detailed below:


The lifetime allowance for pension savings will increase in line with Consumer Prices Index (CPI), rising to £1,030,000 for 2018/2019.

The annual allowance for personal pension inputs will remain the same at £40,000 per annum.  For pension investors already in flexible access drawdown, the money purchase annual allowance remains at £4,000.

Having confirmed an ongoing commitment to the State Pension Triple Lock in the Spring, the Chancellor kept his promise which will see the basic State Pension increase by 3% in April 2018, a cash increase of £3.65 per week for a pensioner receiving on the full basic State Pension and £4.80 per week for an individual on the full new State Pension.


The band of savings income that is subject to the 0% starting rate will be kept at the current level of £5,000 for 2018/2019.

Individual Savings Accounts (ISA)

The ISA annual subscription limit for 2018/2019 will remain unchanged at £20,000. The annual subscription limit for Junior ISAs and Child Trust Funds for 2018/2019 will be uprated in line with CPI to £4,260.

Lifetime ISAs, which have been available since April 2017, also remain unchanged:

  • Lifetime ISAs can be opened by individuals between the ages of 18 and 40. These allow them to save up to £4,000 each year and receive a government bonus of 25% on top, which works out as a maximum of up to £1,000 a year.  This amount is within the £20,000 overall annual ISA allowance.
  • The 25% government bonus will be paid at the end of each tax year on savings put in before the individuals 50th
  • The Lifetime ISA can be used after an initial minimum holding period of 12 months, towards a deposit on a first home up to £450,000 anywhere across the country. The full amount including interest, growth and bonus can be used for this purpose.
  • Although the 25% government contribution ceases to be added to any additional savings after the age of 50, the full amount can be accessed after the individuals 60th birthday completely tax free with any previous bonus, interest or growth being kept.
  • Should an individual wish to withdraw their money at any time before they turn 60, they can do, however they will lose any government bonus and any interest or growth added to date. There will also be a 5% charge applied in doing so.

David Allen Financial Services, as Independent Financial Advisers, can help you make the most of your savings and investments and ensure your retirement planning makes the most of the tax advantages available.  We can also help you plan for any home purchase or remortgage with our Mortgage and Protection Advisers offering whole of market mortgage advice.

For an initial discussion to see how we can help, please contact one of our team on 01228 711881.