RENT-A-ROOM

For some years those letting out rooms in their residential home have been able to make £4,250 each year free of tax. The Chancellor has announced this will be increased to £7,500 per year from 6 April 2016.

PERSONAL ALLOWANCES FROM April 2016

Currently the Personal Allowance (the amount that can be earned before any tax is payable) stands at £10,600. It will go up to £11,000 from April 2016.

The level at which 40% higher rate tax is payable is also increasing. From April 2016 this means a person will have to be earning in excess of £43,000 before they start paying 40% tax, up from
£42,385 this year. No change was announced to the level at which 45% tax is payable, i.e. £150,000.

INHERITANCE TAX !

Change Coming?  There may be news in the Budget on Wednesday about the taxing of residential property on death.


Tune in !

Beware - a Budget approaching !

The Budget the Chancellor will give on the 8th of July may have bad news for Higher Rate Taxpayers. There has been considerable discussion on whether he will limit tax relief on pensions to the Basic Rate (20%) tax relief. If you are a Higher Rate Taxpayer, you might want to consider making your pension contributions in this Tax Year sooner rather than later.

WHY USE US?

We have over 30 years of experience with financial matters which has given us a great deal of expertise and know-how.

We seek to provide an efficient, professional and friendly service to all our clients.

Here are a few recent client comments:

“You are trustworthy and professional with clear explanations given. Thanks for your patience.”

– Mr JG of East Grinstead

“Thank you for your help and attention, excellent as always.”

– Mrs CC of Leicestershire

“Ever grateful for your prompt and helpful advice.”

 – Professor BHW of Oxford

“I needed someone I could trust.”
– Mr GN of Turners Hill,West Sussex


“That’s brilliant. Can’t believe how quick you got this (mortgage offer) through.”
– TM and DW of Crawley, West Sussex

REMORTGAGE RATE WAR

Lenders are still fighting for market share which means that interest rates are at their lowest levels ever. If you are on your lender’s standard variable rate, it is worth finding out what your options are. It could save you hundreds of pounds and, in some cases, even thousands of pounds. We would be happy to provide quotations without cost or obligation.

INTEREST-ONLY MORTGAGES AND EQUITY RELEASE

Interest-only mortgages were popular in past years as the monthly payments for such were extremely low.

However, in many cases the means for eventual repayment of the amount borrowed was not dealt with properly – leaving many with money still owing on their mortgage and a relatively short number of years in which to repay it.

For those over 55 there is now an option to secure an indefinite interest-only mortgage arrangement at a fixed rate for the life of the borrowing. This is a new development in the Equity Release marketplace. Previously the only option one had with a Life-Time Mortgage was to allow the interest to accumulate. The repayment of the interest and original amount borrowed would take place on the eventual sale of the property. Now, however, many providers are offering an option which allows those taking out a Life-Time Mortgage arrangement to make voluntary payments of interest, and even capital. Since these payments are voluntary, you can miss payments without penalty or even stop payments altogether. There are also no affordability requirements as the borrowing is based on age and not on income.

Note: this type of equity release is only available from age 55. At age 55 you can only take about 25% of property value. This rises to about 48% of property value for those in their 80s.

Contact us with any questions you have or for quotations.