Tuesday 27 May 2014

Tax Facts!


Some key tax facts to remember for 2014/15:



Personal Tax Allowance: £10,000
Higher Rate Tax Band: starts at £41,865

Capital Gains Tax Annual Exemption: £11,000

Inheritance Tax Nil Rate Band: £325,000

Maximum Pension Lifetime Allowance:
£1.25 million
Residential Property Stamp Duty: the same as last year.

Tuesday 20 May 2014

A NEW ISA

From 1 July 2014 the amount that you can put into an ISA will go up to£15,000 – about £4000 more than currently.



It will also be much more flexible than existing ISAs as it will allow both cash savings and stocks and shares in the one investment. And, boldly, it will allow cash held in existing ISAs to be transferred

to stock and shares and reversely, will allow investment holdings in ISAs to be transferred fully to cash holdings regardless of the amounts –all remaining within the ISA tax-free wrapper.


Monday 12 May 2014

Savings Changes


To help pensioners who have been suffering from very low interest rates on their savings, the Chancellor has announced that in January 2015 he will be introducing a new “Pensioner Bond” for those aged over 65.

It will pay much better rates of interest than currently available. At this time it is estimated that the Bond will pay 2.8% for one year deposits and 4.0% for three year deposits. Up to £10,000 can be invested in each bond. He is also raising the cap on Premium Bond holdings in June from their current level of £30,000 to £40,000 and offering an additional million pound prize.

Tuesday 6 May 2014

A BUDGET WITH PROMISE AND PROMISES!

The Chancellor’s March Budget was aimed primarily at helping UK businesses increase their production but it also includes a number of new measures affecting savings and pensions – some effective immediately and some promised for April 2015.


Pension Changes



The most revolutionary announcements relate to personal pensions. With immediate



effect those who are aged 60 and over can cash-in small pension pots – up to 3 different

pots and to a maximum of £10,000 in each pot. 25% of the pot can be taken as tax-free

cash with the balance being taxed as if it were earned income. The Chancellor has also

increased the “Triviality” limit whereby a pension fund of up to £30,000 can be taken as

cash (25% tax free) if that is the only pension benefit a person has. The promise is that by

April 2015 this freedom to access the money in your pension pot will apply to the whole

pension for those aged 55 and over. Here again 25% of what you take out will be tax-free

and the balance will be treated as earned income.

The Chancellor wants to enable everyone to be able to access their pension savings at any

time after age 55 and without having to purchase an annuity – although an annuity may

well still be the best choice for many. With immediate effect he is increasing the level of

income a person with an Income Drawdown Pension can take each year. Those who have

a guaranteed pension income of at least £12,000 will be able to access all of the money in

their pension fund.