We have put together a summary of the upcoming changes in the world of pensions that may affect you and your clients. Please see below a couple of client alerts from JLT’s Quality Research Group (QRG) that may be of interest to you not only in relation to your SIPP and SSAS clients, but also their businesses and staff pension schemes that their businesses may have.
This will be the first of a new series of updates that we will be sharing with advisers which we hope will be both informative and helpful. As such, we would be keen to receive feedback regarding the content and suggestions for future topics that could be of interest to you and your clients. If you have any questions or feedback then please do not hesitate to contact our Technical Helpdesk on 02920 557024 or via email to firstname.lastname@example.org.
In addition we’ve put together a summary of the tax year changes that will be effective for 2019-20 tax year below:
- The Lifetime Allowance will be increasing to £1,055,000 (in line with the consumer Prices Index for the 12 months ending September 2018).
- The annual allowance is remaining at £40,000, with the exception of those subject to the tapered annual allowance (those with threshold income of greater than £110,000 and adjusted income of greater than £150,000) and those who have triggered the Money Purchase Annual Allowance of £4,000.
- An increase to the standard tax free personal allowance from £11,850 to £12,500 per annum.
- An increase in the Higher rate tax threshold from £46,350 to £50,000 per annum (except for those in Scotland, see details below), although this reduction in income tax will be partially offset by the widening of the National Insurance threshold.
- Welsh Rate of Income Tax (WRIT) – the Welsh Government will be able to vary the rate of income tax paid by Welsh taxpayers, but for 2019/20 it will keep the same rates as England.
- Scottish Rate of Income Tax (SRIT) – the Scottish Parliament has increased its thresholds for the starter tax band and the basic rate band, but it has frozen the higher rate and additional rate bands. (For full details of the rates and bands please see HMRC’s guide.)
- An increase in the state pension from £164.35 per week to £168.60 (£125.95 to £129.20 for those who reached state pension age before 6 April 2016).
- The launch of the Single Financial Guidance Body in January this year, bringing together The Money Advice Service, The Pensions Advisory Service and Pension Wise and from 6 April this year it will be known as the ‘Money and Pensions Service’. More information is available on the second attached client alert.
- From 6 March, the state pension age rose to 66 for those born between 6 December 1953 and 5 January 1954).
Should you have any further queries please contact us on 029 20 557024.