Happy Half Tax Year!

05 October 2015

The press and media are providing much coverage of 'Pensions Freedoms' flexibility six months after the new rules were launched on 06 April 2015. I was invited onto BBC Surrey & BBC Sussex to discuss the effects thus far and many retirees have been canny in avoiding the desire to splurge their hard earned funds on something other than providing income in retirement. After all, this is what a pension was designed to do.

With the date above noted, a lesser headline will be that we are now six months through this tax year (2015-2016), with some already having addressed this year's financial planning, including the use of this year's tax allowances. Examples might be the ISA allowance (£15,240 each), Capital Gains Tax allowance (£11,100) and pension allowances (up to £40,000 gross in this tax year, but may be higher if you use HMRC Carry Forward allowances) as examples.

This year's Autumn Statement from the Chancellor is in late November and this may well be a good reminder to some of the importance of taking action this year to manage your money as effectively as your budget will allow. Indeed, our lengthy experience of providing financial advice demonstrates that both October and November tend to be busy months for those planning their finances, before focusing on other topics in December, such as the expenses of Christmas and the New Year. I hope by then that HMRC would have released the relevant application forms/ process for those planning to secure higher pension benefits (up to £1.25M) under Fixed Protection for the Lifetime Allowance. This limit falls to £1.0M in the next tax year 2016/2017.

Whatever the financial headlines are over the next few weeks, make sure that you take action this calendar year in ensuring that your financial planning is correct and ready for the balance of this tax year.

We aim to be topical in these Chapters Financial blogs and, as with all of these, no individual advice is provided in the text. We also produce a printed newsletter on a regular basis and if you would like a copy of this then please email the office at Guildford or Woking directly.

Keith Churchouse FPFS
Director
Chartered Financial Planner
Certified Financial Planner
ISO22222 Personal Financial Planner

Chapters Financial Limited is authorised and regulated by the Financial Conduct Authority, number 402899.