Financial Planning

Money Purchase Annual Allowance – confirmed reduction

Key points:

  •  Stops pension savings being recycled
  •   Limits further pension savings

As was hinted at in last year’s Autumn Statement, the Government felt that a reduced limit should be imposed and launched a consultation which closed a few weeks ago.

Whilst the Chancellor did not formally announce this, a policy paper was published online confirming the details.

The reduction to £4,000 will apply from 6 April 2017 and affects those individuals who have flexibly accessed their money purchase / defined contribution pension savings and limits the amount they are able to contribute to further pension savings. The Money Purchase Annual Allowance cannot be used to carry forward unused allowances.

 

Social care system

Key points:

  •   Further funding and support given

The UK social care system is under significant pressure, with an expectation that there will be more than two million more people over the age of 75 in 10 years’ time, putting further pressure on the system.

The Chancellor announced that the Government is to provide an additional £2 billion to local authorities in England over the next three years to support social care services, with £1 billion of this to be provided in 2017/18.

Later this year, the Government will publish a green paper to cover long term care needs and plans.

It had been hinted that a Care ISA should be introduced but there was no mention of this in the Spring Budget.

 

Market leading Savings Bond

Key points:

  •   Further funding and support given

The UK social care system is under significant pressure, with an expectation that there will be more than two million more people over the age of 75 in 10 years’ time, putting further pressure on the system.

The Chancellor announced that the Government is to provide an additional £2 billion to local authorities in England over the next three years to support social care services, with £1 billion of this to be provided in 2017/18.

Later this year, the Government will publish a green paper to cover long term care needs and plans.

 

State Pension review

Key points:

  •  Fairness to all
  •  Uncertain times

In a rather quiet Spring Budget on Financial Planning matters there wasn’t much announced, but the devil is in the detail of the documents released by the Government.

The Chancellor drew comparisons between the employed and self employed building up the same level of entitlement to the state pension.

The document confirms that to ensure the state pension remains “sustainable and fair across generations”. The Government will carry out its first statutory review of state pension age, which will be published by 7 May 2017.

 

 

Get in touch

To find out more about how we can help you or your business, call us on 0808 144 5575 and speak to a member of our team. Alternatively use our contact form to send us a message or arrange a callback.

CALL 0808 144 5575

or

Contact Us

All content © 2015 Armstrong Watson. All Rights Reserved. Website by Simon Pighills.

Armstrong Watson LLP is a limited liability partnership registered in England and Wales, number OC415608. The registered office is 15 Victoria Place, Carlisle, CA1 1EW where a list of members is kept. Armstrong Watson Accountants, Business & Financial Advisers is a trading style of Armstrong Watson LLP. Armstrong Watson LLP is regulated by the Institute of Chartered Accountants in England and Wales for a range of investment business activities.

Armstrong Watson Audit Limited is registered to carry on audit work in the UK and Ireland by the Institute of Chartered Accountants in England and Wales. Registered as a limited company in England and Wales No. 8800970. Registered office: 15 Victoria Place, Carlisle, CA1 1EW

Armstrong Watson Financial Planning Limited is authorised and regulated by the Financial Conduct Authority. Firm reference number 542122. Registered as a limited company in England and Wales No. 7208672. Armstrong Watson Financial Planning & Wealth Management is a trading name of Armstrong Watson Financial Planning Limited. Registered Office: 15 Victoria Place, Carlisle, CA1 1EW