Budget Review: Things can only get better…

In March 19, 2015
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As suspected, the UK Budget had little in the way of surprises this year. The Chancellor made clear that ‘we are all in this together’ and it is essential that we continue to follow a clear financial strategy towards recovery and reducing the deficit. He built on the pension freedom reforms of last year; he is supporting savers through a new tax-free personal savings allowance and making ISA more and more attractive!

The Budget delivered this year will be welcomed by many people, but in particular if you are a Saver, Pensioner or First-Time Buyer, things have never looked so good. So let’s take a look at the main highlights:

Pensions

• From 2016, pensioners who have bought an Annuity will be able to cash it in and take advantage of the same pension freedoms launching in April.

• The current pension annual allowance remains at £40,000.

• Also from 2016, the pension lifetime allowance will be reduced from £1.25m to £1m, but the Chancellor has announced that indexation will apply to this allowance.

ISA’s and Personal Savings

• From this autumn, ISAs will become much more flexible. The Chancellor has changed the rules on ISA withdrawals, so that money can be withdrawn and replaced without affecting the overall annual ISA allowance.

• The annual ISA allowance will increase to £15,240 in 2015/16.

• A new ‘Help to Buy ISA’ will be available from this autumn. First time buyers who are building their deposit will get a 25% top-up in the form of tax relief from the Government. Savers can make an initial deposit of up to £1,000, followed by monthly deposits of £200. For every £200 saved, the Government will add £50, up to a maximum of £3,000.

• From April 2016, a new Personal Savings Allowance will be introduced that means basic rate taxpayers will pay no tax on the first £1,000 of interest they make from savings each year.

Along with being able to save more into the new ISAs, you’ll also have more control over how you access your pension savings. These changes are critical to helping many people achieve their retirement goals.

For more information on how you can benefit from the new reforms, or to set up a meeting to discuss your personal situation, contact us today on 01489 877 547.

 

Your capital is at risk. Investments can fluctuate in value and investors may not get the amount back they invest. Past performance is not a guide to future performance. Tax rules can change at any time.

 

Please remember your home or property may be repossessed if you do not keep up repayments on your mortgage. We give clients the option to pay for mortgage advice by fee rather than commission. Equity Release refers to lifetime mortgages. To understand the features and risks, ask for a personalised illustration.

 

The Financial Conduct Authority do not regulate, Will Writing, Buy to Let Mortgages, Auto Enrolment, Tax Advice and Estate Planning.

 

The opinions contained within this blog, do not constitute financial advice and no action should be taken based on this content alone.

Jasmine has been a qualified Financial Planner since 2008. She has also been a member of the Society of Will Writers since 2012. She is passionate about helping Clients build their wealth and achieve the financial lifestyle they desire. Her areas of expertise are that of Savings, Investments, Pensions and Retirement Planning.

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The Financial Conduct Authority do not regulate, Will Writing, Buy to Let Mortgages, Auto-Enrolment, Tax Advice and Estate Planning. Your capital is at risk. Investments can fluctuate in value and investors may not get the amount back they invest. The guidance and/or advice contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK. https://register.fca.org.uk/

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