It's that time of year again! Another wave of proposed measures have been announced by George Osborne during his first Conservative Autumn Statement yesterday. The Chancellor's eagerly awaited speech did not include many surprises. However, there were a few changes to State Pension, stamp duty on buy-to-let properties, as well as pension tax credit highlighted within the review.
To find out how this will impact those in or approaching retirement, take a look at our round-up below.
- From April 2016, the basic State pension will increase by £3.35 to £119.30 a week.
- From April 2016, the maximum rate for people collecting the new State Pension will be set at £155.65.
- Those who travel abroad for over a month will no longer be able to receive pensioner's credit. At present, recipients can go abroad for up to 13 weeks whilst still receiving the payouts.
- The Chancellor has already indicated that tax relief on pension contributions could be subject to further change and details were originally expected in the Autumn Statement. However, he recently told savers not to expect a decision until the Budget in March.
- From April 2016, those purchasing additional properties such as buy-to-lets and second homes will pay an extra 3% in stamp duty land tax. This means that the tax bill on a buy-to-let property costing £250,000 will increase from £2,500 to £8,800.
- From April 2019, capital gains tax (CGT) due on the disposal of a residential property will be required to be paid within 30 days of the completion of the disposal. Currently, the payment period is between approximately 10 and 22 months.
- The previous cut in tax credit cuts will be scrapped, with taper and threshold rates for working tax credits and child tax credits remaining the same.
- Councils will be able to add 2% to council tax bills in a bid to provide up to £2 billion for social care.
We will keep you updated with any developments. In the meantime, if you have any questions regarding the Autumn Statement, please contact Retirement and Investment Solutions on 01489 878300.