View more on these topics

CPD: Personal tax

The latest edition of Newsbrief counts as 1 hour of structured CPD and covers the regulatory and marketplace changes which took place during March 2014. Visit the Money Marketing CPD Centre to answer 10 multiple choice questions and complete this CPD activity. Just click into your CPD Plan and you’ll find each month’s marketplace changes round-up in your activity list.

April CPD Newsbrief – Personal tax


Budget 2014 tax changes – and other surprises

John Housden

Pensions was the area of greatest reform in this year’s Budget, with an emphatic response to the growing criticism of quasi-compulsory annuitisation. The Finance Bill 2014 will:

•    Change the size of small individual pension pots that can be taken as a lump sum. Regardless of the total pension fund, the amount increased to £10,000 as of 27 March 2014.
•    Increase the capped drawdown limit to 150% of HMRC/GAD rates for pension drawdown years starting on or after 27 March 2014.
•    Reduce the minimum income requirement for flexible withdrawals, from £20,000 to £12,000, subject to pension scheme rules, from 27 March 2014.
•    Increase the amount of total pension wealth that may be taken as a trivial commutation lump sum from £18,000 to £30,000 (again from 27 March 2014).

Subject to consultation, from 2015/16:

•    Flexible withdrawals will effectively become available to all. The rules for drawing the PCLS will be revised, apparently back to when the lump sum could be drawn in isolation.

•    The rate of tax payable on funds remaining at death will be reviewed.

•    The minimum pension age (currently 55) will rise in line with the state pension age (SPA), starting in 2028 with a rise to 57 (when the SPA reaches 67).

ISAs From 1 July 2014, all ISAs will become New ISAs (NISAs). The maximum annual contribution will rise to £15,000 and the full £15,000 may be placed on deposit. For JISAs, the investment limit will rise to £4,000 from 1 July, while for the 16-17 year old ISA, the limit will be £15,000 (cash only).

Income tax The personal allowance is already set to rise to £10,000 next month, and an additional £500 is planned for 2015/16. The higher rate threshold will be £42,285, 1% up on 2014/15 and about £1,600 below its 2009/10 peak. This will mean more middle earners moving to 40% tax. The starting rate band , which only applies to savings income, will be cut from 10% to 0%, while the size of the band will rise from £2,880 in 2014/15 to £5,000. 2015/16 was also confirmed as the first year of the new transferable tax allowance for married couples and civil partners. This has now been set at 10% of the personal allowance, i.e. £1,050 initially. It is a measure of the usefulness of the new allowance – which Ed Balls wants to scrap – that it will initially cost only £25 million.

Venture capital The Finance Bill 2014 will formally close down VCT enhanced buybacks, although in practice they disappeared almost as soon as the Treasury’s original consultation paper last July hinted at anti-forestalling measures. The SEIS was granted a permanent existence and its CGT reinvestment relief maintained, though still on half of the gains reinvested. 



HMRC launches massive tax avoidance crack down

Tessa Norman

Nearly 65,000 individuals could forfeit hundreds of millions of pounds to HMRC as part of its plans to crack down on tax avoidance schemes.

HMRC proposes to extend powers currently in draft legislation which allow it to issue payment notices to anyone who has used an avoidance scheme that a court has ruled against.

The measure was announced in last year’s Autumn Statement and will be introduced in the 2014 Finance Bill. But in its consultation paper, HMRC says the draft power “does not go far enough” and wants payment notices to be extended to anyone who has used a tax avoidance scheme into which HMRC currently has an open inquiry.

If the proposals go ahead, it will publish a list of these schemes before the Finance Bill is given Royal Assent and begin issuing notices immediately afterwards. Notices must be paid within 90 days.

The rules will apply to both existing and new cases. HMRC is currently investigating 65,000 individuals and businesses that have used marketed avoidance schemes. It says 85% of these cases took place more than four years ago.

April Newsbrief

The latest edition of Newsbrief counts as 1 hour of structured CPD and covers the regulatory and marketplace changes which took place during March 2014. Visit the Money Marketing CPD Centre to answer 10 multiple choice questions and complete this CPD activity.

Just click into your CPD Plan and you’ll find each month’s marketplace changes round-up in your activity list.

Not yet registered? Join for free today at and access over 35 hours of independent, accredited CPD learning content. 

Learning objectives (full list of ApEx standards covered below)



FSCS adviser bill up 6.6 per cent despite overall levy reduction

The FSCS has set the adviser levy for 2014/15 at £112m, up £7m on the January projection, despite the overall levy on the financial services industry falling. Financial services firms will pay £37m less to the FSCS than projected in January after the overall levy was today set at a total of £276m, down from the […]


FCA to ditch Canary Wharf offices and move to Olympic Park

The Financial Conduct Authority has agreed a deal to leave its Canary Wharf offices and move to the Olympic Park site in Stratford. The regulator has secured a 20-year lease on a 430,000 sq ft site in the Stratford International Quarter development next to the Queen Elizabeth Olympic Park. The move is set to go […]


Just Retirement issues annuity sales warning following Budget pensions bombshell

Just Retirement has warned shareholders it is unlikely to meet the 7 per cent growth in annuity sales flagged in its interim management statement following radical reforms announced during the Budget. The pension liberalisations, which come into effect from April next year, will allow anyone aged 55 or over to take 100 per cent of […]


Perspective director steps down

Perspective commercial director Anthony Morrow the IFA consolidator.  The business confirmed Morrow has left the business and sold his shareholding, but could not confirm who has taken over his stake in the business.  Perspective executive chairman Paul Hogarth is also founder of Paradigm, which yesterday posted accounts for the year to April 2013 showing reduced profits following […]

Nigeria cover image - thumbnail

White paper — Nigeria International Insights

Jelf Employee Benefits closely examines healthcare provision and challenges within Nigeria. This will be of particular interest to HR decision makers with employees based in Nigeria, and assesses the environment, risks, facilities and safeguards that are relevant to organisations that are actively deploying expatriate staff in this location.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm