We find most clients recognise how tax efficient pension contributions can be for them and their businesses BUT.
Yes, there is always the buts – When can I draw my cash? How much can I draw? What if I don’t want to buy an annuity?
Currently investors aged 55 or over can take a lump sum tax free payment of 25% of their fund. The rest can be drawn annually as taxable income using draw-down provisions or buying an annuity. There are rules in place that then cap this income.
That is now all changed. From April next year pensioners can take their whole fund as a lump sum, the first 25% will still be tax-free, the balance taxable.
The proposals are subject to consultation but we believe this takes away one of the most regularly cited obstacles to setting up or increasing contributions to a pension.
Not only may it encourage increased saving but will mean big changes in the annuity market. In fact, will there even be one?
We will keep you updated of news on these pension changes up to the introduction.
There is no better way to start this post than with this fabulous video of Girona and the surrounding region, read on to discover why this is my kind of town (it’s actually a city but I wouldn’t want to … Continue reading →
A study by the Prudential has found people entering retirement that have been divorced are, on average, £2,600 worse off than those that have avoided a marriage break up. Typically they are 16% worse off (financially, anyway!).
Given that nearly 40% of those retiring this year have been divorced this is having a significant impact on new pensioners, particularly women whose incomes tend to be most vulnerable, many relying on their husband’s pension pot rather than assets held in their own name.
Don’t understand APR? Can’t work out the true cost of balance transfers and cash advances? Want to know how long it will take to repay off your card debts and how much interest you will pay? Help is now available after the UK Cards Association launched www.cardcosts.org.uk
Particularly useful are the online tools allowing you to compare different payment plans and a clear explanation of the terms and conditions referred to in credit card agreements.
During the June spending review the government announced as part of its cuts that HMRC is expected to save £1bn in departmental and administrative costs for 2015-16. However, it is expected to increase its targets for revenues from tax evasion to £24.5bn, a £1bn increase on 2014-2015.
George Osborne said when presenting the review: “when it comes to Her Majesty’s Revenue & Customs, despite the fact that this department will see a 5% reduction in its resource budget, we are committed to extra resources to tackle tax evasion”
“the result is we expect to raise over £1bn more in tax revenues from those who try and avoid paying their fair share”
After an amazing year of British sport in 2012 it shows just how far cycling has come in the public consciousness when Bradley Wiggins scooped both a knighthood and The Sports Personality of the Year award. As the reigning Tour … Continue reading →