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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Make sure you shop around for the best pension rate

Monday, 14 December 2009 14:04
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If you are thinking about taking income from your personal pension fund in the form of an annuity, make sure you take advantage of the most competitive annuity rates, as once bought your annuity cannot be switched to another annuity provider.  You may not be aware that you do not have to accept the annuity rate offered by the pension company who has managed your pension fund, but you can take it from another provider if you wish (exercising the open market option).  In the third quarter of 2009 only 34% of people took up the open market option (37.5% 2008), according to the Association of British Insurers.  As independent financial advisers we have the technical expertise to access the whole market to help you secure the best possible income in retirement, so contact us on 01245 283594 or ifa@cfm-advisers.co.uk

When you are ready to buy an annuity do tell your annuity provider about any lifestyle/medical conidtions you may have as these could affect the income you receive in retirement, i.e. a higher annuity income may be available if you are in poor health.  Pension companies are not obliged to inform retirees about enhanced annuity rates or ask about medical conditions.  If you are classed as a smoker make sure that you disclose this to your pension company because, unlike life insurance where smokers are penalised for their choices, smokers can benefit from higher annuity rates than those offered to non smokers.  In 2008 an estimated 7% of annuity sales related to enhanced or impaired products, a surprisingly low take up.

Accessing the best annuity rate is not easy, so contact us on 01245 283594 or ifa@cfm-advisers.co.uk.  We will be able to advise you on the most suitable type of annuity for your circumstances and we will have access to the whole market to ensure to the best of our ability that you receive the highest income that you can.

Last Updated on Monday, 14 December 2009 14:25