During George Osbourne’s Autumn statement on 5th December, 2012, a number of changes to personal reliefs and allowances were announced.
In summary, these were as follows;
Annual ISA Allowance
This is to rise from £11,280 to £11,520 on 6th April, 2013. Of this amount up to half (£5,760) may be deposited within a Cash ISA.
Personal Allowance for Income Tax
From 6th April, 2013 the Personal Allowance will increase from £8,105 to £9,440
Higher Rate Threshold for Income Tax
The basic rate limit will from 6th April, 2013 be set at £32,010 giving a threshold of £41,450 above which higher rate tax will be payable.
The Inheritance Tax Nil Rate Band band is frozen at £325,000 until 5th April, 2015. From 6th April, 2015, it will increase to £329,000.
Capital Gains Tax
From 6th April, 2014 the CGT exemption will increase to £11,000. For the 2015/16 tax year, it will be £11,100.
Pension Savings Tax Relief
From 6th April, 2014 the Annual Allowance for pensions tax relieved savings will be reduced from £50,000 to £40,000.
The standard Lifetime Allowance for pensions tax relieved savings will be reduced from £1.5 million to £1.25 million
A transitional ‘fixed protection’ regime will be introduced for those who believe they may be affected by the reduction in the lifetime allowance
The maximum income that can be withdrawn from a pension under ‘capped drawdown’ rules is set to return to 120% of the Government Actuaries Department (GAD) rate, having been reduced last year to 100% of the GAD rate.
This change requires legislation and therefore, the date of implementation is currently unknown.
Should you wish to discuss any of the above changes and how they affect your circumstances please contact Springfield Financial Services on 01772 729742.