Money News

Budget 2009: What it means for savers and homeowners

Wednesday, 22 April 2009

Writes Hazel Cottrell
hazel.cottrell@consumerchoices.co.uk

Chancellor Alistair Darling courts savers with a boosted ISA allowance, and the stamp duty holiday continues in an effort to lure first-time buyers into the market.

ISA allowances will be increased and the stamp duty holiday will be extended as part of the Budget 2009, which was presented by Alistair Darling today.

The annual ISA allowance will be increased to £10,200, of which up to £5,100 can be saved in a cash ISA. These higher limits will be made available to people over 50 from 6 October this year and to all from 6 April next year.

Chris Eagle, commercial manager at CreditChoices.co.uk said: “This is fantastic news for savers, who will soon be able to shelter even more cash from the taxman and further boost their returns.”

In housing news, the current stamp duty holiday, which covers properties costing up to £175,000, has been extended to 31 December 2009.

Eagle said: “If you are planning to buy or sell a house, but aren’t quite ready, this takes the pressure off slightly as buyers now have until the end of the year to purchase a property without paying stamp duty.”

The government will also spend £600million on building more homes by unlocking sites that are currently sitting dormant.

Other measures that feature in the Budget include:

• An increase in income tax to 50% for those earning more than £150,000, from next April.
• Additional funding for Jobcentres, to help people get back into work
• An 2% increase on taxes on alcohol and tobacco, from tonight.

ISAs: How the Budget 2009 changes affect you >>>

Government helps recession-hit homeowners with mortgage support >>>

Compare ISAs >>>

Is now a good time to get a fixed-rate mortgage? >>>