The maximum amount which can be added to an ISA in the tax year 2018/19 is £20,000 and this allowance is to remain the same for the next tax year. Both spouses are entitled to their own allowance, but an unused ISA allowance cannot be carried forward. So, if you do not use your ISA allowance by 5 April 2019 you will lose the opportunity to do so.
Have you ever asked yourself whether you would be resentful if a shareholder, who didn’t understand your company, tried to tell you what to do? This is exactly what could happen if a fellow shareholder died and their beneficiaries then own the shares!
Around 5 million people in the UK are working for themselves – this makes up 15% of the UK workforce. Around one in three of these people say they cannot afford to save into pensions privately, so they will rely on the state pension to fund their retirement.
Every investment decision should be taken with care and consideration of all of the facts. But equally important is the need to give thought to your overall investment strategy and what you want to achieve.
“The general Government gross debt was £1.763 billion at the end of the financial year ending March 2018. This is equivalent to 85.8% of gross domestic product (GDP) and 25.8% points above the reference value of 60% set out in the Protocol on the Excessive Debt Procedure”.
This popular bumper sticker remains true when we consider how many individuals continue to pay tax during their so called retirement. Indeed, almost 7 million pensioners have an average annual tax bill of £3,500 with the total tax paid reaching £24 billion (2015/16 tax year).
I have heard about options for keeping my pension benefits flexible. How would this work?
The traditional method of drawing pension benefits is by-way-of annuity purchase which means that you give up your capital sum for a guarantee of an annual income for the rest of your life. With the advent of income drawdown and the latest version known as Flexi-access drawdown (FAD), you can retain your capital sum and instead invest this to achieve an investment return. A regular income can be paid from these monies and providing the investment return is sufficient, the pension pot can be maintained or even increased. This option allows flexibility over the level of income paid with potential for any residue monies to be available on death.