Act now and review your finances before the new tax year
Friday 18 March, 2016
Use or lose your ISA allowance for the 2015/16 tax year
Use up your individual ISA allowance of £15,240 to invest in a Stocks & Shares ISA, or invest up to £15,240 in a cash ISA with the balance invested in a Stocks and Shares ISA. That enables a couple to invest £30,480 in tax efficient investments before April 5th 2016.
Act before 5th April 2016 to avoid losing pension tax allowances
From the 6th April 2016 there will be a cut in the amount of tax-efficient pension saving for some high income earners. If you think this could apply to you contact your Financial Adviser for advice or read our article: How will the annual allowance be tapered for high earners?
How should you protect yourself against the pension Lifetime Allowance?
From April 2016 the Lifetime Allowance, the total amount that you can hold within all your pensions without incurring an additional tax charge is being reduced from £1.25million to £1.0million. Exceeding the Lifetime Allowance with have tax consequences, 55% on any lump sum withdrawals and 25% if the funds remain in the pot; to be further taxed if taken as income. These changes will not just affect those that are already close or above the Lifetime Allowance, other groups of pension savers including those entitled to final salary pension benefits or high earners who are a long way from retirement will need to act.
