Autumn Statement; What’s in it For the Savers and Pensioners

For savers, the annual ISA contribution limit will rise modestly from the current level of £11,280 to £11,520 from April 2013, a rise of 2.1%.. But previously it was said that this would be increased in line with inflation.

What about pensions?

The basic state pension will rise by 2.5% next year to £110.15 a week. Meanwhile, the two main limits on tax relief for pension saving are being reduced, again, although this will mainly affect the top 1% of pension savers. From 2014-15, the lifetime allowance for tax-free pension saving will be cut from £1.5m to £1.25m, and the annual allowance will be cut from £50,000 a year to 40,000.

The chancellor said by 2016-17 this would recover about £1bn of the tax relief currently given away to people saving in pension schemes.

Read more

http://www.bbc.co.uk/news/business-20598769

Source; bbc.co.uk

If you want to find out more on how these changes will affect your savings and pension contact KVS Accountants for advice. KVS acts as accountants and tax consultants in Earlsfield, Earls Court, Parsons Green, Chelsea, Hammersmith, Wimbledon, Roehampton and Putney

 

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