Money news: page 41
- April 2023
Dividend and capital gains tax allowance cuts take effect
The dividend and capital gains tax allowances announced in Jeremy Hunt's 2022 Autumn Budget took effect on 6 April 2023, halving the amounts that can be earned before tax is due.
Income Tax rates updated for 2023 to 2024
HM Revenue & Customs updated its published Income Tax rates and allowances for the 2023 to 2024 tax year on 6 April 2023, with later corrections to Scottish rates and earlier figures.
New interest thresholds and plan 5 interest rules come into force
Repayment regulations for student loans changed on 6 April 2023, introducing plan 5 loans for courses starting from August 2023 and new interest and threshold rules.
Lifetime Allowance charge abolished and pension tax limits increased
From 6 April 2023 the lifetime allowance charge is removed and the pension commencement lump sum is capped at 25% of the current lifetime allowance, while four pension tax limits rise.
Backdating of SMI claims limited to 3 April 2023 for claimants with earnings in every assessment period before that date
Official guidance confirms that Universal Credit claimants who had earnings in every assessment period before 3 April 2023 can only backdate a Support for Mortgage Interest loan to that date.
SMI opened to employed Universal Credit claimants
The Department for Work and Pensions has changed Support for Mortgage Interest so employed Universal Credit claimants can qualify, cutting the waiting period from nine months to three.
Which? research finds banks mishandling Power of Attorney registration
Which? research published on 3 April 2023 found that banks mishandle power of attorney registration, restrict attorneys' online access and give misleading advice, while building societies performed better.
ONS research shows majority of England private rents rose in the year to February 2023
ONS research reported by Which? shows 50.6% of privately rented properties in England had a rent increase in the year to February 2023, with London highest at 66.8%.
Additional rate threshold lowered from £150,000 to £125,140
The point at which income tax is charged at 45p in the pound fell from £150,000 to £125,140 from April 2023, and the threshold has been frozen at that level since.
Beagle Street publishes The Mortgage Cover Gap Report
Beagle Street's Mortgage Cover Gap Report estimates £433bn of mortgage debt across Great Britain has no life insurance behind it, based on the most conservative assumption that 26% of mortgage households hold no policy.
Cost of living payments kept cash benefits for the poorest fifth in line with FYE 2022
Official figures show cost of living payments kept cash benefits for the poorest fifth of UK households level with the previous year after inflation, though final incomes fell overall.
DAF payment rules changed for all applicants
From 1 April 2023 all applicants to the Discretionary Assistance Fund in Wales became eligible for three payments in a 12-month rolling period, with an 11% increase to emergency awards and a shorter gap between applications.
Fair By Design and SMF launch report on insurance poverty premiums
Fair By Design and the Social Market Foundation have published research finding that paying monthly for car insurance costs more than paying annually, with some people giving up cover as a result.
First 2023/24 Cost of Living Payment issued
The first instalment of the 2023/24 means-tested Cost of Living Payment, £301, was paid to most eligible households between 25 April and 17 May 2023, the opening part of a £900 award.
Full-scale managed migration to Universal Credit started
Full-scale managed migration to Universal Credit began in April 2023, moving legacy benefit claimants across Great Britain onto Universal Credit in stages and replacing Income-related ESA over time.
Full new State Pension rose to £203.85 a week
The full new State Pension rose to £203.85 a week from April 2023, with the annual figure reported as £10,636.60, as the triple lock uprating took effect.
Government £400 energy discount scheme ended in April 2023
The £400 energy discount paid to every UK household from October 2022 ended in April 2023, as the energy price cap continued to set bills for most households.
Government announced replacement credits system
The National Insurance replacement credits service for parents who missed out on credits after opting out of child benefit has been delayed from April 2026 to April 2027.
Government consultation on BNPL regulation closes
A government consultation on regulating buy now, pay later services closed in April 2023, with the Financial Conduct Authority potentially overseeing the sector by the end of that year.
Help to Buy 2 scheme ended in England
The Help to Buy 2 equity loan scheme closed to new applications in England at the end of March 2023, after two years in which it was restricted to first-time buyers.
Help to Buy - Wales opens to first-time buyers and home movers with a 5% deposit for homes up to £300,000
The Welsh Government's Help to Buy Wales shared equity loan scheme applies to new-build homes up to £300,000 from 1 April 2023, for first-time buyers and home movers with a 5% deposit.
Help to Buy - Wales price cap rises to £300,000 with EPC B requirement
The Help to Buy Wales purchase price cap rose from £250,000 to £300,000 on 1 April 2023, and every home sold through the scheme must now meet a minimum energy rating of EPC B.
HM Treasury Call for Evidence on the Payment Services Regulations 2017 concluded
HM Treasury has concluded that existing rules on payment service contract terminations are deficient, and has laid regulations extending the minimum notice period to 90 days from 28th April 2026.
JROC publishes roadmap for next phase of Open Banking
The Payment Systems Regulator and fellow members of the Joint Regulatory Oversight Committee published a roadmap in April 2023 setting out three phases of delivery for open banking, with a full set of open banking payments targeted for 2025.
Large pension schemes to connect to dashboards digital architecture from April 2023
The Government's draft Pensions Dashboards Regulations propose that the largest occupational pension schemes connect to the dashboards digital architecture between April 2023 and September 2024.
Managed Migration started in Northern Ireland
Managed Migration to Universal Credit began in Northern Ireland in April 2023, initially inviting only Tax Credits only claimants, after the process had already been running in England and Wales.
Minimum wage rise of almost 10 per cent takes effect
The minimum wage rose by almost 10 per cent on 1 April 2023, with 1.7 million workers gaining directly, according to the Resolution Foundation.
Most Scottish councils raise council tax bills by at least 5% for 2023-24
Most Scottish councils raised council tax by at least 5% for 2023-24, with Orkney Islands up 10%, and ministers have proposed letting councils double bills on second homes from April 2024.
Move to UC begins for tax credit claimants
The Department for Work and Pensions began moving tax credit claimants onto Universal Credit in April 2023, a process the Office for Budget Responsibility says enabled the tax credit system to close in April 2025.
National Minimum Wage and National Living Wage rates rise on 1 April 2023
All National Minimum Wage rates rose on 1 April 2023, with the National Living Wage for workers aged 23 and over increasing 9.7 per cent to £10.42 an hour.