Autumn
statement
update
You will have probably read many column inches on the Autumn statement, but I have picked out the main ones associated with savings and pensions that should come into effect in April 2015. The Taxation of Pensions Bill is currently proceeding through Parliament and has not yet been enacted. Therefore some proposals may not be introduced.
This update dovetails with the previous newsletters that you have received so the information it is not duplicated.
Savings
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The NISA allowance has been increased from £15,000 to £15,240
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On death the value of the NISA ‘allowance’ can now be transferred to the surviving spouse, keeping the value tax free
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The personal allowance will rise to £10,600 before you start paying tax
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You will start paying high-rate tax above £42,385
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A spouse who doesn't have income to fully use their personal allowance will be able to transfer up to £1,060 to their partner, provided that the partner is not a high rate taxpayer
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The starting rate limit on savings income will increase to £5,000 (currently £2,880)
Pensions
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Age 75 is a key differentiator date
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If you pass away before age 75, in principle your beneficiaries should not pay any tax on receiving your personal pension
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After age 75 your personal pension can be passed on to your beneficiaries but there may be some marginal tax to pay
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For those receiving the State pension today, the full State Pension will increase to £115.95 per week. If you were born after 6/4/51 (6/4/53 women) then after April 2016 the new single-tier State pension should be at least £151.25 per week
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Now that you are able to pass on your pension to any beneficiary it would be prudent to review your will and your pension expression of wishes
As retirement options are now so complex, if you ever speak to a friend that needs to find some clarity, then please do pass on our details.
Kind regards,
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