The budget contained several significant measures:
- The dividend allowance will be cut from £5,000 to £2,000 from April 2018.
- Self-employed workers will see their Class 4 national insurance contributions (NICs) increase by 1% to 10% in April 2018, with a further percentage point rise to 11% from April 2019. The government had previously announced that Class 2 NICs will be abolished from April 2018.
- The individual savings account (ISA) allowance will rise to £20,000 in April 2017 as previously announced.
- The Chancellor confirmed the launch of a new NS&I investment bond from April 2017 that will pay a 2.2% rate over a three-year term on deposits of up to £3,000.
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