MM – Budget 2015

Budget Guide 2015

2015 Budget Guide: Pensions and savings

SW Smaller Logo

This year’s Budget has seen the Chancellor press on with yet more far-reaching reforms, some of which build on last year’s momentous changes.

Key changes to the pensions lifetime allowance and innovations in the Isa sector will have far-reaching ramifications for the way advisers handle long-term saving issues.

John Greenwood 2014 peach

The 2015 Budget also introduced a revolutionary plan to create a secondary market for annuities, which creates both challenges and opportunities for advisers, and which beg questions about the government’s future approach to other secured benefits such as defined benefit. Trading annuities is not just about access to cash, but also about maximising the generous new death benefits that have just been introduced.

This Budget Guide is designed in partnership with Scottish Widows to give advisers access to some of the best thinking on the many varied issues raised by the Chancellor in his last Budget before the general election, to enable them to help their clients make the most of these far-reaching changes.

John Greenwood , Editor, Corporate Adviser

MM CA SW Budget Guide Supplement

 

Click Here to download the Money Marketing Budget Guide.

 

For more insight and analysis into the 2015 Budget visit the Scottish Widows adviser hub .

 

George-Osborne-with-head-down-walking-700.jpg

Budget 2015: Govt to bag £1bn from tradeable annuities

A secondary market for annuities will give the Government over £1bn in tax receipts in the first two years, Budget documents reveal. Yesterday, the Treasury published a consultation on creating a secondary market for annuities from April 2016. A costings document reveals it expects to net £535m in 2016/17 and £540m in 2017/17 as individuals […]

2014-Budget-George-Osborne-Walks-Away-with-Box-700.jpg
4

Plans to abolish annual tax return ‘overly ambitious’

The Government’s plans to abolish the annual tax return by next year are “overly ambitious”, according to tax experts. Chancellor George Osborne said in his Budget speech this week that from next year, millions of people will have their tax automatically managed through online accounts. Those with the most complex tax affairs will manage their […]

Business-People-Silhouette-Leaving-Walking-700x450.jpg
3

Tax avoidance overhaul may prompt wave of confessions

Government plans to close a tax avoidance disclosure facility may generate a surge of business for HMRC, according to experts. As part of the Budget, the Government said it would bring forward the April 2016 closure of the Lichtenstein Disclosure Facility to the end of this year. The Lichtenstein mechanism offers those who admit avoiding […]

HMRC-Building-700x450.jpg

Budget 2015: HMRC to issue 21,000 more payment demands to tax avoiders

HM Revenue and Customs will issue an extra 21,000 accelerated payment notices in a bid to seize a further £555m in disputed tax. The Government announced plans to issue the additional notices in today’s Budget. HMRC began issuing the notices to tens of thousands of individuals in July. They can be issued to anyone who […]

George-Osborne-delivers-the-Budget-2014-700.jpg
14

Budget 2015: 650,000 people on benefits could be blocked from selling their annuities

Up to 650,000 people on benefits may be barred from selling their pensions under the Government’s plans. The Government published a consultation today outlining proposals that would allow “five million people” to sell their annuities to a third party. But it says: “In order to protect the taxpayer, the Government does not intend to compensate […]

George-Osborne-delivers-the-Budget-2014-700.jpg
3

Budget 2015: Govt pledges extra funds for Pension Wise

Pension Wise is set receive more Government funds after the Treasury pledged an extra £19.5m in 2015/16 to help meet the demands of the new pension freedoms. The Budget document says: “Additional funding of £19.5m in 2015/16 will be provided to support the new pension freedoms and the new pensions guidance service, Pension Wise. This […]

Ed-Miliband-Labour-conf-2013-700.jpg
5

Budget 2015: Miliband warns of pensions ‘rip-off merchants’

Labour leader Ed Miliband has warned “rip-off merchants” are primed to take advantage of savers accessing the new pension freedoms.  The Treasury has published its consultation today on how the new cash for annuities market, to be introduced in April 2016, will work in practice. Speaking after Osborne’s Budget speech, Miliband said while Labour supports the […]

George-Osborne-delivers-the-Budget-2014-700.jpg
9

Budget 2015: Govt eyes £30k advice step for tradeable annuities

People selling their annuities may be forced to take regulated advice before swapping contracts for cash or moving into drawdown under plans unveiled by Chancellor George Osborne. A consultation published today on how a secondary annuities market could work says “there is a strong case for requiring annuity holders to take financial advice from an […]

George-Osborne-in-Television-Studio-700.jpg
6

Budget 2015: Experts slam pensions allowance cut but back inflation link

Experts have condemned the Government’s cut to the pensions lifetime allowance as a “retrograde step” that undermines the freedom and choice agenda. However, the limit will be increased in line with CPI inflation from 2018. Dentons technical services director Martin Tilley says: “The commitment to indexation is welcome – it’s the first time we’ve seen […]

George-Osborne-19-March-700.jpg
2

Budget 2015: Isa withdrawals won’t count toward annual tax-free limit

The Government has announced a “radically new” Isa framework allowing savers to withdraw money from their Isa without it counting towards their annual tax-free entitlement. Chancellor George Osborne said following the reforms on pension freedoms, “there is more to do to create a savings culture”. He said allowing people to take money out of their […]