From “market manipulation” to “grabbing [the British ISA] with both hands”, what are the impactful changes from March’s Spring Budget? Director of Matthew Douglas, Matthew Pescott Frost, features on Citywire’s ‘The Advice Show’ podcast reviewing the 2024 Spring Budget and what it means for you.

With an impending (but yet to be announced) general election, UK investors may have been expecting sweeping changes to be announced in this month’s Spring Budget. 

However, the response has been lukewarm from many business sectors with some feeling it lacks the targeted support needed to underpin sustainable economic growth.

I found it fairly underwhelming, as most of the content had been leaked already. However, there was a small bounce in UK stocks with the announcement of the British ISA, suggesting that it was more positively than negatively received by the City.

Reduced Capital Gains Tax allowances

The continued reduction in Capital Gains Tax allowances is unsurprising and unwelcome.

Having dropped from £12,300 in 2022/23 to £6,000 2023/24 and down to just £3,000 in 2024/25, it’s a big drop and it increases the taxable assets of people selling high-value items.

British ISA introduced

If it materialises, the British ISA will be very interesting indeed. While I do not doubt that investors and financial advisers will grab it with both hands, I can’t help but wonder if it provides enough choice. While promising, a lot of our clients, as with most IFAs, are retired, so they are simply not going to feel the benefit of this.

Broadly, I don’t agree with the manipulation of markets and there has, I feel, been a general bias against the UK since Brexit. While it offers an opportunity for greater savings, it’s inconvenient on a practical level as advisers will need to create a separate model to monitor UK stocks outside of the wider global market. 

Listen to ‘The Advice Show’ podcast

How can we encourage greater UK investment? And, on a measurable level, how will the budget likely impact you? Listen to the Citywire’s ‘The Advice Show’ podcast in full to explore more with me and Citywire reporters Nicola Blackburn and Zach Sharif.