If you’re considering retirement in the next few years or have an ISA, you need to be aware of some important changes taking effect in April 2010. Read on to find out why March could make a significant difference to your personal wealth.
Minimum Pension Age is changing to 55
From 6th April 2010, the minimum age for taking benefits from a pension scheme will increase from 50 to 55. If you’re in this age bracket and want to draw some benefits from your pension plan (such as tax free cash), you need to act now.
It’s also worth noting that you don’t have to give up work to start realising benefits from your pension plan, and there are a range of advantages to accessing your fund early. Contact our Financial Services Team for more information and expert, independent advice.
Your ISA Allowance: use it or lose it! (and don’t forget the increased allowance for the over 50s)
You have until the 5th April 2010 to maximise your Isa allowance of £7,200 for the current tax year. If you don’t use it you lose it.
The new ISA allowance, which came into effect on 6th October, means that people in the UK who will be aged 50 or over by 5th April 2010 can save an additional £3,000 in an ISA. This rise from £7,200 to £10,200 is an exciting opportunity that could make a real difference to your investments and offers an invaluable opportunity to protect further savings from the taxman.
Any money you save in an ISA is free from Capital Gains Tax. There is also no further tax to pay on any income you receive. This means you can build up a substantial sum over the years, which you can withdraw whenever you want. Coming, as it does, at a time of record low interest rates and ahead of already announced income tax rises, this opportunity to shelter an additional £3,000 from tax is not to be ignored. To help you take advantage of this opportunity please contact our Financial Services Team.
