Five Things That Ensure Your Pensions For 2016
Annually, it would seem, pensioners face a threat in their monthly income due to changing policies. For 2016, pensioners can breathe easy. Analysts have noted changes in different savings areas but pensions will remain untouched.
This and five more things you need to know about pensions forecasts and finance for 2016.
Pensions Tax Relief Saved
The threat of a flat-rate tax relief for pensioners sounds like bad news for small to medium-rate savers. By possibly pushing away high-rate savers, the Chancellor George Osborne may have realised his error possibly. However, analysts warn that he may not be done just yet.
Personal Tax Allowance
By the 6th of April 2016, Personal Allowance will increase by £400 to £11,000. By April 2017, the amount will rise by £500. This is great news for anybody who needs a huge tax reduction for later.
ISAs To Skyrocket
ISAs may increase by April 2017. The annual limit is set to increase from £15,240 to £20,000.
Capital Gains Tax
If you’re in the stock market, you might find CGTs being reduced. Now, it’s 28pc to 20pc for higher-rate taxpayers and now it’s 18pc to 10pc for basic-rate taxpayers. Definitely a huge plus to invest and sell shares in the market today!
Help To Save Scheme
The Chancellor had announced a Help to Save scheme. This gives low-paid workers a top-up should they build their savings. For savings of over £50 monthly, the Government is to top it up by £25. For four years, one can save £1200 over four years.