Pension savers who wish to use their retirement pots sooner rather than later will need to act quickly if they are not to be faced with a five-year wait.
This is because the age at which people can draw on their personal retirement funds rises as of 6 April from 50 to 55. (more…)
Pension contributions are paid net of basic rate tax, and the pension provider recovers the tax element. Up to £3,600 per year (gross) may be invested by any individual irrespective of whether they have earnings to match it or not. (more…)
The amounts of income you might wish to consider switching will vary according to your personal circumstances. Here are the basic rules: (more…)
The most controversial of the measures introduced in the last Budget was a restriction on tax relief on pension contributions affecting those with income of more than £150,000. (more…)
Your guide to the Chancellor’s Statement I 9th December 2009
Alistair Darling’s announcements include unexpected tax increases
In his final Pre-Budget Report before the next General Election, Alistair Darling faced the twin dilemmas of a soaring public finance deficit and a recession-driven reduction in Government income. While conceding that the economy in 2009 had shrunk by more than previously forecast, the Chancellor stuck to his predictions for a modest return to growth in 2010.
The Chancellor also outlined Government ambitions to reduce the budget deficit by half within four years. Some spending cuts were put forward, including a planned public sector pay settlement cap. As for boosting Government income, VAT returns to a standard rate of 17.5 per cent (though no higher as some feared) and there is to be a further increase of 0.5 per cent in employers’ and employees’ national insurance contributions as from April 2011. Time will tell whether Mr Darling’s final Pre-Budget Report speeds the slow economic recovery. (more…)
