Pension Freedoms Offer Inheritance Tax Reduction on Final Salary Pension Transfers

New rules have made it easier than ever for savers to help out their children.

The “pension freedoms” that were introduced in 2015 have had a marked effect on savers. Final salary pension transfers have hit an all time high, with a surge of savers giving up their defined benefit pensions in favour of a generous lump sum. According to financial advisors, since the introduction of the new rules two years ago, there has been a £50bn boom in pension transfers.… read more >>

Inheritance Tax – Planning for the inevitable

Inheritance tax can cost loved ones hundreds of thousands of pounds in the event of your death. Which means that it’s better to plan for the inevitable, than be caught out by a large tax bill at a difficult and upsetting time.… read more >>

Record Inheritance Tax Bill Collected in 2016

Inheritance tax has always been something of a controversial issue in the UK, not to mention an important topic on several pre-election campaign trails. Nevertheless, it seems like one public headache that isn’t going to go anywhere in the near future. In fact, a think tank has suggested that going forward, there will be a massive increase in the number of people forced to pay inheritance tax.… read more >>

Tax-Advantaged Investments Should Not Be Ignored

Business relief products, venture capital trusts (VCTs) and enterprise investment schemes (EISs) are far from new concepts. In fact, they have all been around for decades, with business relief in particular dating right back to the 1970s. Putting an exact figure to annual business relief scheme asset earnings is tricky, but EISs and VCTs managed to raise more than £2 billion combined in the last tax year. According to data published by AIC and HMRC, VCTs have since first being created attracted more than £5.6 billion, while EISs have pulled in upwards of £14 billion in Britain’s SME sector.… read more >>

Annual Tapered Allowance Causing Confusion Among Savers, Experts Warn

Experts are warning that high-earning pension savers are facing the risk of losing out on considerable sums of money, as a result of widespread confusion on the subject of recently-introduced annual allowance taper rules. The annual tapered allowance – a tax relief cut for high earners – was rolled out as of April 6 this year after being introduced in 2015’s Summer Budget. This, despite the fact that much of the industry complained that it simply made an already complex system even more complicated.… read more >>

Tax-Free Lump Sum Scare Triggers Backlash

Ex-pensions minister Steve Webb was recently quoted as saying that the ability to access 25% of pension savings as a tax-free lump sum was on the ‘brink of extinction’. His comments were initially brought to the attention of the public in an article published in the Sunday Times, which unsurprisingly triggered widespread fears among hundreds of thousands of pension savers.… read more >>

Personal Savings Allowance 101

Starting from April 6 this year, millions of UK savers will be able to earn up to £1,000 in interest on their savings each year, without having to pay a penny of tax. While it may come across as a relatively minor adjustment to policy, the fact that it will apply to no less than 95% of British savers makes it one of the most significant shifts to occur in decades.… read more >>