Although there is a majority of homeowners that have taken advantage of record low mortgage rates in recent years to fix the interest rate they pay on their home loan, many have not. Also many others will be on a fixed deal that is about to come to an end.
It is predicted that the taxman will take £19.7 billion in Capital Gains Tax (CGT) in the 2026-2027 tax year, which is a 114% rise from £9.2 billion taken in 2019-2020.
The age when you can start accessing your private pension is due to increase to 57 (from 55) from April 2028. However to avoid confusion and the potential risk of fraudsters exploiting this change, the Government has closed a loophole in its plans to raise the minimum pension age from 55 to 57.
We are delighted to welcome Heidi Potter, our new Mortgage Adviser to the Iceni Team. To find out more about Heidi and how she can help you with your mortgage needs, please see here
Defined benefit pension or final salary pensions are among the most generous of pension scheme arrangements. They provide scheme members with a guaranteed income at retirement based on a mixture of years worked and final salary.
Did you know that in 2015 changes were made to pension death benefits. This means that should you die before the age of 75, you may be able to pass your pension to a nominated beneficiary tax-free and if aged after 75, your pension pot could be drawn by a beneficiary at their own marginal tax rate; provided of course that your pension scheme allows for this level of flexibility.
Did you know that the Government plans to add 1.25% on the dividend tax rate. You can receive £2,000 of dividends a year tax free but after that the tax rate is 7.5% for basic taxpayers and 32.5% for higher taxpayers. This is planned to rise to 8.75% and 33.75% respectively in April 2022. This means a basic taxpayer will pay £263 in tax, up from £225 on £5,000 of dividend payments. For a higher taxpayer this will e £1,013 up from £875.
The age at which pension savers can access their pot freely, is set to increase from 55 to 57. The change, which is due to come into force in 2028, will affect most people approaching retirement. This will mean that from 2028, those under 57 will not be able to access their pensions without incurring a tax penalty. There are exceptions, however, notably people forced into retirement by bad health as well as firefighters, police and the armed forces.
There are about 1.6 million lost pension pots in the UK worth over £19.4 billion. The ABI (Association of British Insurers) says that pensions often get mislaid when people move house and fail to tell their pension scheme provider. Tracking down lost pensions is certainly worthwhile as it will give you a clear view of your financial position when you are looking to retire.
Here are six things that we, as trusted award winning Independent Financial Advisers, can do for you:- Personal advice – Our friendly Financial Advisers will source solutions that are best for you and your loved ones. We’ll ask questions about you, your family and lifestyle, together with a risk assessment; to fully understand your needs, aspirations and your future goals.