Over-55s risk falling prey to the inheritance ‘sibling tax trap’
On 6 April 2017, a new additional main residence nil-rate band (RNRB) was introduced, which allows for less Inheritance Tax to be paid in situations when a family home is left to children, grandchildren or certain other ‘qualifying beneficiaries’ – including stepchildren and foster children.
Unfortunately, some individuals do not realise the importance of planning for their retirement. The amount of money saved for retirement will eventually have a profound impact on how we live our lives and our standard of living in our golden years.
Do you have the time to keep fully up to speed with everything that’s going on?
With a burgeoning choice of products on the market, and considering the busy lives we all lead, it can be difficult to find the time to keep fully up to speed with everything that’s going on – especially when you consider that financial products are unlikely to remain the same throughout your lifetime.
On 8 March, the Chancellor of the Exchequer, Philip Hammond, delivered what people had expected – a Budget of few surprises to provide a ‘strong, stable platform for Brexit’. However, he did reveal the tax-free dividend allowance will be reduced from £5,000 to £2,000 from April 2018.
Tax rate charge on transfers on or after 9 March 2017
Qualifying Recognised Overseas Pension Schemes (QROPS) transferred on or after 9 March 2017 are now subject to tax charge at a rate of 25% on the transfer. The measure took effect with respect to relevant payments from QROPS from 6 April 2017.
Tax relief means some of your money that would have gone to the Government as tax goes into your pension instead. You can put as much as you want into your pension, but there are annual and lifetime limits on how much tax relief you get on your pension contributions.
Simpson Bowers Wealth Management Limited is an appointed representative of In Partnership the trading name of The On-Line Partnership Limited which is authorised and regulated by the Financial Conduct Authority. This internet site is directed to UK residents only. You are responsible for satisfying yourself that under the laws of your home jurisdiction you may lawfully access this internet site. The Financial Conduct Authority does not regulate all of the services we offer and provide. Any tax reliefs referred to are those currently applying and are liable to change. Their value depends upon the individual circumstances of the investor.
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