Archive for March, 2014

Budget changes make ISAs even NISA?

Posted on: March 28th, 2014 by nwp_admin No Comments

Chancellor George Osborne announced major changes to the rules around Individual Savings Accounts in his 2014 Budget speech which could have a significant impact on your savings and investment strategy.

Instead of having to invest solely in cash (Cash ISA) or shares (Stocks and Shares ISA) you will now be able to invest in either within one tax efficient New ISA wrapper (NISA).

There will be flexibility to move your money from shares to cash (or vice-versa) within the New ISA, depending on your circumstances and appetite for risk. The total you can protect from tax is also rising to £15,000 per annum.

If you have any questions about how to take advantage of the New ISAs,  please get in touch.

Is buying a Lamborghini with your pension a good idea?

Posted on: March 21st, 2014 by nwp_admin No Comments

Following changes announced in the Budget people will have complete flexibility, once they reach age 55, to take their benefits when and how they see fit. Up to 25% will be tax-free with the remainder being taxed at the individual’s highest marginal rate. You could blow the lot on fast cars, Bingo and beer…

However, with that freedom comes a huge risk and the possibility of unintended consequences. Many retirees are naturally conservative so while increased flexibility may have some appeal, they will also want to make sure they have long-term guaranteed income –  a hedge against living too long.

Independent advice will be key in helping people take advantage of the new flexibility rules and tax planning, while ensuring they have a sustainable lifetime income.

If you have any questions, please don’t hesitate to get in touch!