Thursday, 20 April 2017

WELCOME TO THE NEW TAX YEAR!

TAX NOTES FOR 2017/18 from the Budget


Personal Allowance £11,500 (reduced for those with incomes over £100,000)


20% Rate Tax Band £33,500 (adding in the Personal Allowance of £11,500 means that your income would need to be in excess of £45,000 before the 40% tax rate would start to be charged)


Annual ISA Allowance £20,000 (up from £15,400 last year)


Lifetime Pension Allowance £1 million


Inheritance Tax Nil Rate Band £325,000 (same as last year)


Annual Pension Allowance £40,000 (reduced for those with incomes over £100,000)


Rent-A-Room Allowance £7,000 per annum tax free (same as last year)


National Living Wage £7.50 per hour (up from £7.20 per hour last year)

Monday, 20 March 2017

INHERITANCE TAX CHANGES

Announced last year, from April 2017 there will be additional Inheritance Tax relief for those passing

residential property down to their children. This will be in addition to the £325,000 Inheritance

Tax relief for each individual. This will be an extra £100,000 in 2017/18 and will increase over the

coming years until it reaches £175,000 in 2020/21. While this is good news for many, the details

are rather complex so it is worth some study. It is called the Residence Nil Rate Band (RNRB). Go to

www.gov.uk/guidance/inheritance-tax-residence-nil-rate-band for more information.

Wednesday, 15 March 2017

MORTGAGE OPTIONS FOR THE MORE MATURE OF US!

There are more and more mortgage options for those of us getting older.

These include normal residential mortgage options as well as the useful Lifetime Mortgage options. These can open doors to many who otherwise have felt caught in a mortgage trap which they could not escape from due to age or income limitations. Do contact us if you would like to find out what might be available for you.






Wednesday, 8 March 2017

PENSION FREEDOM CONSEQUENCES

You can take your pension benefits from age 55, but be aware that taking the benefits early could restrict how much you could then continue to contribute into a pension.
Contact us for more details.




Also, if you have built up substantial pension benefits over the years, be aware that there is a Pension Lifetime Allowance. Pension savings made in excess of that could result in having to pay charges. Contact us if you have questions about this.


Wednesday, 1 March 2017

PENSION FREEDOM

You can take your pension benefits from age 55, but be aware that taking the benefits early could restrict how much you could then continue to contribute into a pension.


Contact us for more details.




Also, if you have built up substantial pension benefits over the years, be aware that there is a Pension Lifetime Allowance. Pension savings made in excess of that could result in having to pay charges. Contact us if you have questions about this.


Monday, 20 February 2017

PENSION FACTS

If you pay into a personal pension, for every £100.00 you put in, the Government adds £25.00. And, if you are a higher rate taxpayer, you will get a further £25.00 off your tax bill. This makes saving by means of pensions a very attractive option – particularly for those paying higher rates of tax. If you are a higher rate taxpayer, however, do be advised that the Government is seriously considering reducing pension tax relief for higher earners.


It would be a good time to look and see about maximising your pension contributions. You can pay up to £40,000 each year into a pension (subject to your earnings) and may also be able to catch up pension payments from the last 3 years if you have not paid the maximum in each of those earlier years.


Wednesday, 15 February 2017

ATTACKS ON THE BUY-TO-LET MARKET!

Over the past 12 months there has been a deliberate effort by the Government to make buying properties to let less attractive.



First, there was the announcement that the Stamp Duty payable on second properties would be 3.0% more than that payable on residential properties. That is a very significant amount of money. Then there is the progressive reducing of tax advantages on the interest on mortgages on let properties – ultimately dropping from as much as 45% for Additional Rate Taxpayers down to a level of 20% for all. This effectively raises the costs for many landlords who are higher rate taxpayers.

There are further changes. In 2017 we will see the affordability calculations for Buy-To-Let mortgages significantly increased – the bottom line being that the amount of mortgage available based on the monthly rental, will go down from the levels they have been. This could make buying and remortgaging more difficult. Do contact us if you need any remortgage calculations. All in all the
Government may be shooting itself in the foot with these actions as the result could be a stagnant housing market with reduced levels of house building and sales.