CHANCELLOR’S AUTUMN STATEMENT
We welcome a number of the changes which will help client’s seeking our advice
- The changes to stamp duty will make it less expensive for those buying their first home and maybe down-sizing in later life. For example someone buying a house valued at £185,000 will now pay £1,200 stamp duty – a saving of £650 on the old system
- Many people are using ISA accounts to secure tax free income inn retirement until yesterday when one partner died the tax advantage of his or her ISA Benefits could not be passed on to the survivor. This will now be possible so this enables the survivor to continue to benefit from the tax free income
- The Personal Allowance will rise to £10,600 from April 2015 and this will be a help particularly for those in retirement with modest incomes
- The Chancellor confirmed that if your husband or wife is drawing a pension and dies prior to age 75 any benefits which pass to the survivor will be paid tax free
- Finally, we welcome a change which has not happened. There had been rumours that the chancellor may reduce the level of tax relief on pension scheme contributions. He did not do this, so contributing to a pension scheme continues to be a very tax efficient method of saving especially now that you have total flexibility concerning the method of withdrawing your pension fund in retirement.