18 March 2015
Taxation of inherited annuities
Beneficiaries of individuals who die under the age of 75 with a
joint life or guaranteed term annuity will be able to receive any
future payments from such policies tax free where no payments
have been made to the beneficiary before 6 April 2015. The tax
rules will also be changed to allow joint life annuities to be paid
to any beneficiary. Where the individual was 75 or over at death,
the beneficiary will pay income tax at their marginal rate(s).
From 6 April 2016 the lifetime allowance for pensions will
be reduced from £1.25 million to £1 million. Transitional
protection for pension rights already over £1 million will be
introduced alongside this reduction to ensure the change is
not retrospective. The lifetime allowance will then be indexed
annually in line with CPI from 6 April 2018. There is no change to
the annual allowance, which remains at £40,000.
Personal savings allowance
From 6 April 2016 the government proposes to introduce a
new personal savings allowance to remove tax on up to £1,000
of savings income for basic rate taxpayers and up to £500 for
higher rate taxpayers. Additional rate taxpayers will not receive
an allowance. As part of these reforms, HMRC will introduce
automated coding out of savings income that remains taxable
through the PAYE system from 2017/18, with pilot schemes
starting in autumn 2015.
Peer-to-Peer (P2P) lending
A new relief will be introduced allowing individuals lending
through P2P to offset against other P2P income any losses from
loans which go bad, as previously announced. The change will be
effective from April 2016 and through self-assessment will allow
individuals to make a claim for relief on losses incurred on new
loans made from 6 April 2015.
The planned increase to the NS&I Premium Bond investment limit
to £50,000 will take place on 1 June 2015.
You should review
your retirement plans
especially if you are close
to drawing your pension.
The rules are changing on
6 April 2015 when there
will be new opportunities
to turn your pension fund
Maximise pension tax
relief while you still can.
The pension lifetime
allowance is currently
£1.25 million but it will be
reduced to £1 million in
April 2016. What’s more,
the annual allowance
of £40,000 could be
cut after the election.
Take advantage of the
rules to maximise your
while you still have the