Key points from the Autumn Statement

The Autumn Statement on Wednesday contained some key points for personal financial planning.

We quickly produced a free 10-page briefing note which highlighted some of the most important announcements in the Autumn Statement.

The latest episode of the Informed Choice Podcast also examined some of these key Autumn Statement personal finance measures.

Here is a quick list of what you need to know in respect of your savings and investments, retirement planning and inheritance tax planning. Do speak to us if you have any questions.

Savings & Investments

From April 2015, the annual ISA allowance will be £15,240, up from £15,000. The Junior ISA and Child Trust Fund limits will both be increased to £4,080.

From 3rd December 2014, if a spouse or civil partner with an ISA dies, their surviving spouse or partner will be able to inherit their ISA tax advantages.

From 6th April 2015, a new rule will be introduced which will allow a surviving spouse or civil partner to use the ISA allowance of their deceased partner, boosting the amount they can save in a tax efficient manner.

Interest rates for the new Treasury backed Pensioner Bonds, which were announced in the Budget in March, will be published on Friday 12th December. There has been speculation these rates will be lower than the originally forecast 2.8% for a one year bond or 4% for a three year bond.

Retirement planning

From April 2015, the 55% ‘death tax’ on inherited pensions is abolished where the pension holder dies under the age of 75. Where the pension holder dies over the age of 75, their beneficiary will pay income tax on withdrawals from the pension or a 45% tax charge if they take the money as a lump sum.

If you have accessed your pension fund from 6th April 2015, a new £10,000 annual allowance for tax privileged pension contributions will apply. This is designed to stop ‘recycling’ of pension funds to gain tax relief.

Tax relief can still only be claimed on pension contributions up to age 75.

Inheritance tax planning

Despite earlier consultation, the Treasury decided against introducing a single settlement nil-rate band for trust and inheritance tax planning. They will however legislate to target tax avoidance where individuals use multiple trusts to avoid inheritance tax.

If you have any questions about anything announced in the Autumn Statement, please do get in touch.

Our team of Financial Planners are ready to assist you with your retirement planning, investment management and Financial Planning. We offer an initial meeting which is at our expense and without any obligation.

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