As you will have likely seen, Jeremy Hunt delivered his Autumn Statement in the Commons yesterday – it was short and relatively uneventful given the financial gossip that has been floating around for the last few weeks. Whilst there aren’t any major changes, I wanted to highlight key points for you:

  • Good news for VCT and EIS investors as the opportunity to invest in new schemes is extended to 2035. Don’t worry though, this date has no effect on existing investments and the tax-free dividends you receive from them.
  • Class 1 employees National Insurance cut by 2% from January on earnings between £12,570 and £50,270.
  • Class 2 National Insurance abolished for the self-employed and Class 4 will be cut by 1% from April.
  • State Pensions will increase by 8.5% to £221.20 per week.
  • Mr Hunt announced a ‘shake up’ of the pension system aimed at giving workers greater control of where they build their retirement funds.  We will wait to see the detail on this.
  • Whilst there was no change in the ISA allowances, Mr Hunt did announce that from next April, you will be able to subscribe to multiple cash or stocks and shares ISA in one tax year.  You will also be able to make partial transfers of ISA funds.  This may be useful in a few cases but we don’t feel this will have much impact on the advice we give.

Lifetime Allowance Legislation

  • Amongst all the Treasury documents, HMRC also published some more details on the pension regime for 2024/25. This confirms that the Lifetime Allowance will be abolished and that pension funds that are used by beneficiaries to go into a drawdown policy or buy an annuity will continue to be tax free provided the member dies before age 75.  There had been some mention that this would become taxable so this is good news.
  • The devil is in the detail and we are expecting that in the Finance Bill coming soon. At that point, we can then look to finalise any ongoing pension advice on this matter.

While there are currently few changes that might impact planning, as ever, we encourage you to get in touch and have a chat if there is anything on your mind.

 

 

 

 

 

 

 

 

 

IMPORTANT: This publication has been prepared for information purposes only by Carrington Investment Consultants Ltd. The value of investments, and any income generated from them, will be affected by interest rates, exchange rates, general market conditions and other political, social and economic developments, as well as by specific matters relating to the assets in which it invests. Investors should be aware that the value of units may well fall as well as rise, is not guaranteed and that past performance is not a guide to future performance. Different funds carry different levels of risk and investors may not get back the full amount invested. Carrington Wealth Management is a trading style of Carrington Investment Consultants Limited which is authorised and regulated by the Financial Conduct Authority. Registered office: One Chapel Place, London, W1G 0BG. Registered in England, number 3193939. This email and any accompanying documents contain confidential information intended for a specific individual which is private and protected by law. If you are not the intended recipient, any disclosure, copying, distribution or other use of this information is strictly prohibited. You are also requested to advise us immediately if you receive information which is not addressed to you.  Data Source: Financial Express. Copyright 2024 © Carrington Investment Consultants Ltd. All rights reserved.