Independent Financial Life Planners Bishop's Stortford: Sorting out your tax allowances

Friday, 28 March 2014

Sorting out your tax allowances

Enables IFA’s in Bishops Stortford know that managing your investments requires an understanding of your tax allowances and maximising them alongside your financial planning. 2014’s budget changes mean that the personal tax allowance for everyone has, as predicted gone up. So now no tax needs to be paid until £10,500 has been earned next year, a £500 higher threshold than April 2014. The higher rate tax threshold is also set to rise to £41,865 - a rise of 1% as expected.

Another new tax-free option is to be introduced for pensioners, it is a new higher tax-free savings allowance or pensioner bond, from January 2015, pensioners will be able to put up to £10,000 a year in a new bond run by the government-backed National Savings & Investments. George Osborne promised that interest rates would be "market-leading", and could start at 2.8% on a one-year bond and 4% on a three-year account. Anyone aged 65 and over will be allowed to invest up to £10,000 in each product. A quarter of the pension pot also remains tax-free on retirement but the tax rate on the rest has been cut from 55% to the pensioners’ marginal rate of tax (20% for most).

Another small boon for savers is that monies held in ordinary accounts are taxed, with a starting rate of 10% for low earners, but the chancellor said he would scrap that rate so savers with small incomes would be able to earn up to £5,000 in interest without facing a tax charge.

Making sure your savings and investments are tax efficient is all part of the wealth management service. If you want to talk through the best options for your financial plans Enable's Independent Financial Advisors would be happy to help.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

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IFA Bishop's Stortford

At Enable Independent we know that our clients trust us and rely on our advice to help them to plan a better, more secure financial future. This is a responsibility that we take very seriously especially because we know that many clients have chosen us on the recommendation of friends and family. Each one of our advisers has deep expertise in their area of specialist knowledge and, as a team, we hold some of the highest qualifications available in the financial advice industry.

Our job satisfaction comes from using our skills to find workable, affordable and flexible solutions to meet our clients needs. Whether we are planning for known future funding requirements such as house purchase, school fees or income in retirement - or for the unforeseen such as job loss, long-term illness or early death, our independence from any product provider enables us to view the marketplace impartially. Our training permits us to look beyond a product's marketing hype and select on the basis of its fitness for purpose.