Wednesday 26 June 2013

Long Term Care Costs to be Capped


In the Queen’s Speech the Government announced their intention from 2016 to put a cap on the costs that people are expected to pay if they go into long-term care. This is expected to be £72,000. Anything over this is to be paid for by the state. Those people who have accumulated savings and bought their homes currently face the prospect of the whole value of the estate disappearing in care home fees. Under the new guidelines it looks we will have the opportunity to keep more of the value of our estates – for our own use or to pass down to our beneficiaries.

Monday 17 June 2013

State Pension to Change

The Chancellor has also confirmed some changes in the future. Probably the most

significant one is a change in the State Pension from 2016. All those reaching their
State Retirement Age from 6 April 2016 onwards will receive a flat-rate State Pension
of £144.00 per week. This change will only be for new pensioners so existing pensioners will still have the Basic State Pension, and any additional State 2nd Pension/ State Earnings Related Pension they may qualify for. Along with the higher State Pension will come the requirement that Pensioners seeking the maximum will need to have worked and paid National Insurance Contributions for 35 years as compared to the current requirement of 30 years.

Monday 10 June 2013

Capital Gains Tax

The Capital Gains Tax allowance has gone up slightly – from £10,600 to £10,900.


The Inheritance Tax Threshold remains at £325,000. The Cash ISA (Individual

Savings Account) annual maximum has increased from £5,640 to £5,760. A

Stocks and Shares ISA in 2014 can have £5,760 put in it as well, so the total

ISA allowance is £11,520. The Stamp Duty Tax on property purchase remains

the same as last year with those purchasing a property for over £2,000,000 suffering

an eye-watering 7% tax (£140,000 on a £2,000,001 purchase).

Monday 3 June 2013

Personal Tax Allowance

The Personal Tax Allowance goes up from £8,105 to £9,440. This is the amount you can earn before you start paying tax. However, the Government has also once again reduced the point at which higher rate tax becomes payable. This kicks in now at £34,370. For those with the standard personal allowance this means they would start paying 40% tax on earnings above £43,810 (personal tax allowance of £9,440 plus the Basic Rate Band of £34,370). In 2013/14 the highest rate of tax – for those earning in excess of £150,000 – has come down from 50% to 45%.