The Government had previously stated that the ‘Care Cap’ introduced in the Care Act 2014 would not be implemented until 2020. This made forward planning to cater for care fees particularly difficult. Many wondered if this would mean it would, in effect, be kicked into the long grass and quietly abandoned.
The maximum amount which can be added to an ISA in the tax year 2017/18 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 2018 you will lose the opportunity to do so.
As with most things, appropriate advice when making a decision can add value and this is particularly important when drawing your retirement benefits. The average life expectancy for both males and females is now in to their late 80s and whilst some individuals are having to consider working longer, the retirement period is likely to be the longest holiday of their life.
Tax is never far away from peoples’ minds, and with the leaking of the so-called Paradise Papers, tax avoidance may be foremost in the mind of the Chancellor of the Exchequer Philip Hammond when he delivers his first Autumn Budget on 22 November.
The Bank of England has announced a 0.25% increase in base rates with the Monetary Policy Committee voting by a majority of 7-2 in favour of this rise. This is the first increase since July 2007 and is a direct response to rising inflation and consumer debt.
The Bank of England have today raised interest rates by 0.25% to 0.5% to help control inflation and to dampen enthusiasm for spending, as consumer debt has also been rising and this decision will have come as no great surprise to many people. There will always be winners and losers with an interest rate rise, nothing benefits everyone. The winners will be savers, although the rate rise is unlikely to be passed onto them in full or straight away. People on fixed rate mortgages will be unaffected until their rate expires. The losers will be those people with credit card debt and those on variable and tracker mortgages, seeing the first rise in their monthly payments for over 10 years.
If you have become an employer or are becoming an employer for the first time post 1 October 2017, be it as a new business venture or expansion, pension duties become a legal requirement immediately for you and your new workforce.
One in three girls and one in five boys born this year will live beyond their 90th birthday, reports the latest Office for National Statistics research. Centenarians are, believe it or not, the fastest growing age group, increasing by 92% over the past decade.
The focus on saving for retirement has gathered pace over the last decade or so as we realise that the state pension entitlement on its own is wholly inadequate. With the advent of auto enrolment for employers in making provision for their workforce, the government has tried to lessen the burden on the UK’s finances by placing more responsibility clearly in the private sector. With this said, making provision early for an individual can make a tremendous difference to that individual’s standard of living when they do retire.