Newsflash!

Budget March 2012

The Economy

The Independent Office for Budget Responsibility (OBR) has revised upwards the UK forecast for 2012 from 0.7% to 0.8%.   The forecast for 2013 is 2%, for 2014 2.7% and for 2015/16 3%.   UK inflation is set to fall from 2.8% for 2012 to 1.9% for 2013.

Pensions

WEF April 2013 a new single-tier state pension will be introduced to be set above the means test at a minimum of £140 a week.   The Government is due to examine linking the state pensions age to life expectancy.

Child Benefit

This will be phased out when someone in a household has an income of more than £50,000, decreasing by 1% for every £100 earned over £50,000.   Only those earning more than £60,000 will lose the benefit completely.

Tax

WEF 21 March 2012

  • there is a new 7% stamp duty on properties worth more than £2m
  • there are also plans (15% stamp duty rate on properties worth over £2m within corporate envelopes) to clamp down on stamp duty avoidance by using companies to buy expensive properties.

WEF April 2013

  • the 50p top rate of tax levied on earnings of £150,000 or more will be cut to 45p
  • the personal income tax allowance will be increased to £9,205
  • age-related income tax allowances will be removed for new pensioners and replaced with the same personal allowance as the rest of the UK
  • there will be a new cap on tax reliefs set at 25% of total income for anyone claiming more than £50,000 in a year
  • Corporation tax will be reduced to 24%, with a further 1% reduction in 2013 and in 2014.

There will also be a simplified tax return process for small firms with a turnover of up to £77,000.

WEF April 2013/14

  • the higher income tax band will be reduced from £42,475 to £41,450.

 

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Pensions & Retirement Planning

Friday, 09 October 2009 09:29
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People are retiring earlier, usually living longer and pension needs cannot always be met by the State.  It is, therefore, crucial to start planning and investing as early as possible.

Retirement planning is complicated and bewildering and is governed by a rapidly developing area of legislation.  The choices are greater than ever and our advisers can guide you through the jargon, legislative changes and wide range of options, ensuring that you can make an informed choice based on your retirement needs.  A pension is an investment and we can help ensure that your strategy is reviewed and monitored effectively.

Whether you are employed or self employed you have a variety of choices.  For example, you can establish a self invested scheme rather than use an 'off the shelf' plan from a life assurance company.  Although your employer may contribute to a company scheme on your behalf you can take out your own pension as well.  Parents and grandparents can start a pension for children at birth.  In some circumstances you can pay a lump sum into your pension fund after retiring, take an immediate tax free withdrawal and regular income, but still receive tax relief on the investment.  We advise on personal and company pensions, retirement income, pensions and divorce and tax planning.

The Government is planning to end contracting out of the Additional State Pension on a defined contribution basis with effect from 6 April 2012.  For more information on the Additional State Pension, please visit the DWP leaflet: 'Abolition of contracting out on a defined contribution basis'.

Last Updated on Tuesday, 12 April 2011 14:35