Wednesday, 5 December 2012

Autumn Statement 2012 - "It’s taking time but the British economy is healing"

Image: Alamy
Although there has been more tinkering in the pensions world, we are pleasantly surprised that the reductive measures do not take immediate effect unlike previous autumn statements, and on balance measures appear marginally positive.

The Lifetime Allowance (LTA) will reduce from £1.5m to £1.25m in 2014/15, allowing clients to plan accordingly. We're happy to see only a £10k reduction in the annual allowance and also no change to the enshrined 25% tax-free lump sum. Practical issues abound now with different levels of pension protection.

The ability for clients in drawdown to increase their incomes immediately is of huge benefit, as all-time low gilt yields and a previous change of legislation have massively reduced living incomes.

We are delighted to see AIM shares eligible for ISA investments, providing they maintain their IHT favourable position.

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