Pensions of Significant Value
Welcome to the May/June 2023 edition of Smart Money.
In this issue, Chancellor Jeremy Hunt’s first proper Budget 2023, on Wednesday 15th March, brought some welcome but unexpected changes to pension tax, the most significant of which was the abolition of the pension Lifetime Allowance (LTA) charge. Britons can now expect significant changes that will affect their retirement savings. On page 08 we consider how these changes could impact on your pension and secure your retirement plans.
If you’re an investor looking to maximise your Individual Savings Accounts (ISA) returns, it’s worth considering investing your ISA allowance as soon as possible each year, as soon as it becomes available on 6th April. Not only will this help ensure that your money is protected from taxes right off the bat, but it also means that your investment has more time to grow in the market. This can result in a bigger ISA pot in the long run. Read the full article on page 04.
April brought a host of changes to the UK’s tax regime, with some thresholds for taxes such as additional rate Income Tax being lowered while others are increased, such as Corporation Tax. However, the Inheritance Tax (IHT) nil-rate band has remained stagnant at £325,000 since 2009, despite the meteoric
rise in property prices over the same period. On page 09 we look at how this has resulted in an all-time high of £6.1bn being collected in Inheritance Tax in 2021/22.
Financial planning is a crucial step towards achieving financial freedom and security. According to a recent study, UK consumers who receive professional financial advice can expect to retire on average three years earlier than those who do not seek professional advice. Turn to page 11 to see the findings.
