2015.07: July Economic Review
Highlights UK growth estimates revised upwards as construction sector performs better than expected. An increased rate of growth is expected for Q2 2015 Inflation expected to remain close to zero over the coming months A rise in real earnings and strengthening labour market are expected to support UK economic outlook in the near term Current […]
Contracting through a limited company: how the Budget makes dividends less efficient, but preferable for most than salary
Changes to dividend taxation The government believes the way that dividends are currently taxed is arcane and complex and is going to overhaul the current ‘tax credit’ regime. This will lead, in most cases to an increase in tax liability, but the strategy of extracting funds from the business via a dividend rather than a […]
Why a dividend income strategy doesn’t look quite as beneficial for long-term investors
Unintended Consequences? A consequence of George Osborne’s Budget on Wednesday may mean that individuals wish to reassess how their savings are invested. The Chancellor introduced changes to the taxation of dividend income starting with a dividend allowance of £5,000 a year for all taxpayers, from April 2016. The next change is dependent on the amount […]
Inheritance Tax Changes: so what?
In 1984 the inheritance tax rules were introduced as we currently know them, with a nil rate band, on which assets would not be subject to inheritance tax of £71,000 (effective 1986) Over the years this value has been increased, but has been frozen since 2009 and failed to keep pace with inflation. In particular […]
Implications of a reduction to the pensions annual allowance
We have written quite a bit about this fundamental change and complication of our pension rules, but yesterday we received final proposals as to how pensions will be funded for higher earners from 6th April 2016. However transitional arrangements take effect now. At its simplest, the annual allowance relates to the greatest contribution (or deemed […]
Could being married be worth £212 to you?
How you might benefit There are principally four criteria to consider: Are you married or in a civil partnership? Does one of the two of you have income of £10,600 or less (and this can include an additional £5,000 of savings interest)? Is the other a basic rate tax-payer (broadly speaking income of between £10,601 and £42,385)? […]
Wingate short-listed for the Retirement Adviser of the Year at the Investment Life & Pensions Moneyfacts Awards 2015
We are delighted to be short-listed for the Retirement Adviser of the Year at the Investment Life & Pensions Moneyfacts Awards 2015. Having already submitted an in depth questionnaire providing details of our organisation, our expertise and how we deliver our services. The second stage requires us to support our nomination with client testimonials and evidence of our ability to deliver […]
Why the lifetime allowance will not be abolished
This article was written as a response to “Why the pensions’ lifetime allowance should be abolished” by Peter Magliocco I agree with Peter that the lifetime allowance has long since had its day, and with heavy restrictions on pension inputs it seems unfair to penalise investors for the good performance of their funds. However, I cannot see […]
Why the pensions’ lifetime allowance should be abolished
There is a response to this post, “Why the lifetime allowance will not be abolished” by Alistair Cunningham Historically when £255,000 could be squirrelled away into pension funds on an annual basis some sort of cap on how much could be accrued in a tax privileged pension wrapper could perhaps have been justified. Pension contributions, if […]
Pensions’ flexibility; but with a warning!
The 6th April 2015, “Lamborghini” Day trumpeted access to defined contribution pension plans without restriction. In most instances there is access to 25% tax free cash with the balance subject to income tax. This raises the question as to how ad hoc or one off withdrawals are taxed if you want to dip into your […]
