Posted by: WealthIFA | October 15, 2010

Financial News Update we 15/10/2010

Before we look at the week’s financial news, I guess I should comment on how fantastic it has been over the last few days seeing the emergence of those Chilean miners – all those days spent away from their families not knowing if they will see them again must have been nothing short of torture?

Sometimes it is good to share the good fortune of others don’t you think?… that reminds me, now where is my euro millions lottery ticket from last week?!

Anyway, back in the financial news and one announcement this week that will affect, it is estimated, about 100,000 people in the UK is the reduction in the amount of tax relieved savings one can make into their pensions.

In 2006 we had what was known as “Pensions Simplification” or “A Day” which was meant to bring into line a number of pieces of Pension’s legislation so that they were, well, simplified…

Over the last few years we have seen further changes which has included the freezing of the annual allowance, the reduction in the amount that could be saved before the loss of higher rate relief, anti forestalling rules and so on.

It has now been decided by HM treasury that the maximum amount one should be able to save (with tax relief) into a Pension is £50,000 per annum and that this can be rolled up for up to 3 years.

The good news is that those who are additional rate tax payers will receive tax relief at the additional rate (currently 50%).

These changes do seem to be a sensible compromise but either way, let’s just hope they boost confidence in the use of a Pension in anyone’s financial plan?

In other news…

Estate Planning

Small cap investors face IHT risk http://ow.ly/19mbaY
Beware IHT traps when using trusts for pension plans http://ow.ly/19qncl
Contributions to a child’s pension fund count as PETs http://bit.ly/dv5VzF

Long Term Care

Shell Gas (LPG) Launches Care Home Service http://ow.ly/19noqq
A Sign of the Times: ‘…short term solution which will cost… in the future…’ http://ow.ly/19qkKD
A Sign of the Times – response: ‘We have got to change the way we care for older people’ http://ow.ly/19r2ZV
Quango cull of health bodies is coalition’s third assault on NHS http://ow.ly/19s3gO
Embraced by some but feared by others? http://ow.ly/19suQK

Retirement

Changes to EU law mean cut in pension income for men http://ow.ly/19n6RQ
Watch out for those hidden Sipp fees http://ow.ly/19pYRO
SIPPs offer a solution for pension problems, providers say http://ow.ly/19rwq3

Investments

How to fund your child’s university education http://ow.ly/19puYr
Isa allowance to go up in April http://ow.ly/19qwCP

Have a great weekend!

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