Financial Planning Matters… a monthly insight with Jonathan Beardmore, an IFA at Pearson Solicitors and Financial Advisers.
Post-Election finances with Jonathan Beardmore
IT IS just a month since the general election when during the build-up wise media sages and pollsters had us all convinced the future of the UK Governments was a mixture of messy coalitions.
In what was the biggest failure in the UK polls the country has ever seen, the Conservativs party came home with a majority win. What is yet to be seen is how they are going to implement promises they never thought they would have to make good on.
This is particularly the case in the world of personal finance where the Conservatives have promised many reforms.
Here is a list of what the new Government may do and how it could affect you:
The income tax personal allowance will rise to £12,500 (currently £10,600) and the high rate threshold will rise to £50,000, up by £7,000 by 2020/21.
People earning over £150,000-£210,000 will see a drastic reduction in the amount they are able to save into pensions each year, down to a minimum of £10,000 when an individual earns £210,000. In addition, the lifetime allowance for an individual will limit pension pots to growth of £1,000,000.
A fairly controversial scheme that proposes to allow pensioners to sell their annuities, up until this point we have no idea how this may work, although it may work by creating a secondary market for annuities or acting legislation that allows for annuities to be sold back to the original provider or a third party provider.
Main Residence Inheritance Tax
The rise of Inheritance Tax allowance to £1,000,000 for properties per person could allow for the transfer of large properties between the generations.
We are not entirely sure how all of these proposals are going to play out when they finally come to implementation, but watch out because it may become very interesting indeed for all of us.
Of course the help of an independent financial adviser is always recommended and all appointments and initial discussions with one of our team are free of charge.
With combined legal and financial advice Pearson’s deliver a totally holistic service to clients and provide one steady point of contact. If you need advice on a financial matter, or want to call to chat to one of our professional solicitors about your estate please call 0161 785 3500.