Income Tax Planning in Retirement
In the tax year 2022-23 61% of retirees paid income tax according to HMRC figures. The state pension will become taxable for the first time from 2027, as total earnings from the full new state pension reach above the personal allowance for the first time. The number of pensioners paying income tax is set to rise by 15 percentage points to 76% of all retirees, driven by both rising…
Is it Time Up for the Lifetime ISA?
The Lifetime ISA is subject to a Parliamentary review as it looks to consider whether the savings vehicle is fit for purpose. The Treasury Select Committee in the House of Commons is calling for evidence to gauge whether the Lifetime ISA remains relevant in the current savings landscape. The committee is considering whether the Lifetime ISA works in its current format, whether people who use it for a house purchase…
Why Simplifying ISAs Makes Sense
We are big fans of tax allowances. To be fair, the whole of the savings and investment sector is. We know that when allowances go up, or new tax reliefs are created, people save and invest more money, as well as withdraw funds tax efficiently when they need to spend it. Everyone is happy. So when a new ISA is launched by government you’d think everyone is financial services…
Mortgage Rate Gap Narrows
The gap in rates between average two-year and five-year mortgages is at its narrowest since January 2023, according to data from financial data firm Moneyfacts. The average two-year mortgage rate on the market is now 5.48% (correct as of 8th January 2025), while the average five-year fix is 5.25%, according to the Moneyfacts UK Mortgage Trends Treasury Report. Over 12 months the gap in average rates has narrowed from…
Most Popular Resolutions for 2025
As we enter 2025, many people will be setting New Year’s resolutions. How serious they take them, and how long they last, depend on each person’s will and motivation, but many surveys report familiar themes. Some surveys show differences between different age groups. The differences reflect where they are in life and the issues and concerns they have to deal with. One survey showed that Gen Z’s (under 28s)…
Gifting for Inheritance Tax Purposes
Labour’s new policy on inheritance tax means that more estates could pay inheritance tax (IHT) in future. Whilst there are plenty of legitimate ways to reduce an IHT liability, there’s one which we often forget despite it being very simple. That’s giving money to your loved ones. Although gifting is simple, and might be something you already do without thinking, there are a few rules you should be aware…
Estate Planning for Blended Families
Blended families are formed when two people live together with children from previous relationships. They are increasingly common in the UK, and can work extremely well. However it is worth considering the estate planning implications. It is possible to accidentally leave family members without any inheritance due to a lack of planning or appropriate legal advice. If a will was written with a previous partner clearly this will need…
Retirement Living Standards
Pensions aren’t necessarily thought about much, until an individual is nearing their retirement age. However, the Pension & Lifetime Savings Association (PLSA) is trying to change this, with their Retirement Living Standards, which they hope will become as well known as the ‘5-a-day’ moniker. The idea is to help people have an idea of how much it was will cost them each year in retirement, which should, in turn,…
Investing and the Budget
After all the noise and drama of the recent Budget, it is worth noting that the allowances and reliefs available for the core investment products that our clients use remain in place. ISA allowances and pension contributions remain intact. The dreaded Lifetime Allowance has not been resurrected, and rumours of the removal of pension tax-free cash or radical overhaul of pension relief were just nothing more than rumours. Every…
How Much Tax does the Premier League Generate?
A study by EY based on 21/22 tax year showed that Premier League players and staff contributed £1.7bn in tax, with the Premier League and its clubs combined contributing £4.2bn in total during the year. £1.7bn is a significant amount of money from a small number of people. It was around 0.4% of the UK total for that year. HMRC figures shows it received a total of £731.1bn in…
