Have you considered creating a Junior ISA to give your children a head start when they reach 18?
There’s a lot written about inheritance tax (IHT) planning and much of it is useful and reasonable. There are clever schemes that involve gifting money, investing in particular share classes that qualify for certain reliefs, complicated products from life companies, and a plethora of different trust arrangements available directly from Solicitors. However, although these schemes work, before you engage in them you should firstly consider more simple solutions, some of which I have set out below.
In this issue, Pippa Oldfield, a Financial Planning Analyst with Leeds based financial planning firm Manse Capital looks at the opportunities available for philanthropic giving.
Nick Crabbe from Leeds and Worcester wealth management and financial planning firm Manse Capital considers The Latest Attack on your NHS Pension – “The Tapered Annual Allowance”
The Government has for some time been mooting the idea of removing tax relief on pension contributions for those paying the highest rate of marginal tax (i.e. those earning more than £150,000).
The Government must be relishing its announcement in the Summer Budget on 8thJuly, designed to simplify dividend taxation and bring the treasury an additional revenue of £2.5bn per year. Yet the Chancellor said that 85% of those who receive dividends will see no change, or be better off. So where is this additional revenue going to come from? How will savers be impacted, and in particular business owners, who depend largely on dividends for their income?
Pension tax on death is what the Treasury takes from your personal pensions when you die. If you are under age 75 and die before taking any pension benefits, the value of your fund will normally be paid to your nominated beneficiaries as a tax-free lump sum. If however you die after age 75, and have still not taken benefits, any lump sum death benefits will be taxed at 55%.
From July 1 2014 all ISAs will become NISAs. This applies to all existing ISAs and new accounts opened after 1 July. The Government is changing the name to reflect the significantly increased limits and flexibility that will be available to account holders.
The NISA will be more generous and will offer flexibility to save your NISA annual allowance of £15,000 in cash, stocks and shares or any combination of the two. Under the NISA rules you will also be able to transfer previous years’ ISA savings freely between stocks and shares and cash if you wish.
You might have noticed some transactions on your Transact accounts relating to the Legal and General Property Fund. You do not need to take any action in this regard and these movements are nothing to worry about. It is simply an administration exercise relating to some changes within this fund.