Your magazine from Radiant Financial Group - for your brighter future
Main announcements from Chancellor Rachel Reeves at a glance
Time to revisit your retirement plan?
Reasons to consider remortgaging
The middle-aged squeeze
Inherited property ownership
State pension – Your questions answered
Financial planning conversations you need to have Autumn budget statement 2024
Its 12:30 on Wednesday 30th October. A familiar scene for me as my train pulls out of London Euston for my journey up the West Coast Line towards Manchester and home. But the train is unusually hushed as the occupants huddle over mobile phones and laptops listening to the most anticipated budget in over a generation. The silence is only broken by gasps, sighs of relief or dismay (not sure) and the occasional laugh – hysterical or otherwise. And as most of us were clearly travelling on business, I am sure there was an anticipation of learning whether, or not, we are “working people”.
This was a big budget – the biggest rise in taxation since the Second World War, anticipated to collect £40bn in taxes whilst
significantly increasing debt as a percentage of GDP, with its inevitable impact on markets and interest rates.
We will leave the debate as to whether manifesto promises have been kept or broken for the inevitable discussions in the Commons, over dinners and at the pub, over a pint of beer costing 1p less and with my Coca-Cola costing considerably more! But in this special Budget Edition of Horizons, in addition to our usual mix of financial and lifestyle articles, we have dedicated a Section to analysing the fall-out of the budget and its impact on you.
Whether it is the significant rise in Employer National Insurance or the massive hike in the minimum wage for our corporate clients, changes to
Simon Cogman-Hellier Editor
Capital Gains Tax, swings on Inheritance Tax or the fully expected VAT on School Fees, financial planning decisions will sit at the heart of understanding the budget. Planning for all of our clients will ensure that impacts on your plans are mitigated or at the very least softened. Our financial planners are fully briefed and prepared, so do talk to your planner as it is essential to review your financial plans for your business and for you personally before this tax year end.
And so, I pull into my station, 20 minutes from home, as Rishi Sunak finishes a surprisingly passionate and articulate response. After the usual comfortable, timely and fast journey, what is at the front of my mind? HS2 – why?
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Main announcements from Chancellor Rachel Reeves at a glance
Autumn budget statement 2024: How will your finances and business be affected?
If you want to explore how the recently announced measures might affect your finances or business, please contact us.
What does the Autumn Budget Statement 2024 mean for your money? Chancellor Rachel Reeves delivered Labour’s first Budget since 2010 on 30 October, after the party’s return to power in July’s general election. She announced tax rises worth £40bn, commenting that these would rebuild public services and stabilise the public finances. Our Guide to Autumn Statement 2024 summarises the key points announced.
• Office for Budget Responsibility predicts the UK economy will grow by 1.1% this year, 2% next year and 1.8% in 2026
• Inflation is predicted to average 2.5% this year and 2.6% next year before falling to 2.3% in 2026
• The official definition of UK government debt loosened by including a wider range of financial assets, such as future student loan repayments
• Rates of Income Tax and National Insurance (NI) paid by employees, and of VAT, to remain unchanged
• Income Tax band thresholds to rise in line with inflation after 2028, preventing more people being dragged into higher bands as wages rise
• Basic rate Capital Gains Tax on profits from selling shares to
increase from 10% to 18%, with the higher rate rising from 20% to 24%
• Rates on profits from selling additional property unchanged
• Inheritance Tax threshold freeze extended by further two years to 2030, with unspent pension pots also subject to the tax from 2027
• Legal minimum wage for over-21s to rise from £11.44 to £12.21 per hour from April
• Rate for 18 to 20-year-olds to go up from £8.60 to £10, as part of a long-term plan to move towards a ‘single adult rate’
• Basic and new State Pension payments to go up by 4.1% next year due to the ‘triple lock’, more than working age benefits
• Eligibility widened for the allowance paid to full-time carers, by increasing the maximum earnings threshold from £151 to £195 a week
• Social housing providers to be allowed to increase rents above inflation under multi-year settlement, external
• Stamp duty surcharge, paid on second home purchases in England and Northern Ireland, to go up from 3% to 5%
• Current affordable homes
budget, which runs until 2026, boosted by £500m
• 5p cut in fuel duty on petrol and diesel brought in by the Conservatives, due to end in April 2025, kept for another year
• £2 cap on single bus fares in England to rise to £3 from January
• Commitment to fund tunnelling work to take HS2 high-speed rail line to Euston station in central London
• Commitment to deliver upgrade to trans-Pennine rail line between York and Manchester, running via Leeds and Huddersfield
• Air Passenger Duty on flights by private jet to go up by 50%
• Extra £500m next year to repair potholes in England
• Vehicle Excise Duty paid by owners of all but the most efficient new petrol cars to double in their first year, to encourage shift to electric vehicles
• Companies to pay NI at 15% on salaries above £5,000 from April, up from 13.8% on salaries above £9,100, raising an additional £25bn a year
• Employment Allowance – which allows smaller companies to reduce their NI liability – to
increase from £5,000 to £10,500
• Tax paid by private equity managers on share of profits from successful deals to rise from up to 28% to up to 32% from April
• Main rate of Corporation Tax, paid by businesses on taxable profits over £250,000, to stay at 25% until next election
• Extra £22.6bn for day-today spending on the NHS in England, and a £3.1bn boost to budget for investment
• £6.7bn allocated for education investment next year, with £1.4bn earmarked for rebuilding over 500 schools
• Defence spending to rise by £2.9bn next year
• £11.8bn allocated to compensate victims of the infected blood scandal, with £1.8bn set aside for wrongly prosecuted Post Office subpostmasters
• Government to stop receiving surplus cash from pension scheme for mineworkers
• Extra spending in England will lead to £3.4bn more for Scotland, £1.7bn more for Wales and £1.5bn more for Northern Ireland in devolution payments.
In a significant shift announced by Chancellor Rachel Reeves, pensions will become subject to Inheritance Tax (IHT) from April 2027. This marks a departure from previous rules where pensions were excluded from IHT calculations. Currently, pensions are usually passed on tax-free if you die under the age of 75 – or taxed at the beneficiaries’ marginal rate of Income Tax if you die over 75 – but in most cases,
pensions don’t attract IHT.
This announcement is expected to impact roughly 8% of estates annually, as those who have heavily saved in pensions to lower their IHT liabilities may now face new tax burdens.
Additionally, the IHT tax-free threshold remains frozen at £325,000 (your property, money and possessions) until 2030. If your assets include the family home that you’re giving away to
children or grandchildren, you also receive up to a £175,000 residence nil rate band. As property and asset values rise, more estates will likely fall above this threshold, incurring IHT at the standard 40% rate.
Chancellor Reeves emphasised that these adjustments aim to make the IHT system fairer, ensuring wealthier estates contribute more to public finances. Also, starting April 2026,
budget statement 2024
reductions in agricultural and business property relief will be introduced. The first £1 million of such assets will remain tax-free, with a 20% IHT levied beyond that, including on Aim shares.
Retirees may need to reassess their long-term financial plans, as defined contribution pension funds could attract up to 40% IHT. Despite these changes, no adjustments to existing gifting rules were announced.
Retirees may need to reassess their long-term financial plans, as defined contribution pension funds could attract up to 40% IHT.
Chancellor, Rachel Reeves, confirmed that the lower Capital Gains Tax (CGT) rate will rise from 10% to 18%, while the higher rate will increase from 20% to 24%.
Higher taxes on profits from selling assets like shares
As part of a broader taxraising initiative, the Chancellor, Rachel Reeves, confirmed that the lower Capital Gains Tax (CGT) rate will rise from 10% to 18%, while the higher rate will increase from 20% to 24%.
This change means you might face higher taxes on profits from selling assets like shares. Previously, those with gains above the threshold had to pay 20% on profits from assets such as shares, or 24% from selling additional property. Rates on residential property will remain at
18% and 24%, respectively.
‘We need to drive growth, promote entrepreneurship and support wealth creation, while raising the revenue required to fund our public services and restore our public finances,’ Reeves said.
‘This means the UK will still have the lowest capital gains tax rate of any European G7 economy.’
CGT is paid on profits of more than £3,000 (2024/25) made when an asset is sold, and rates depend on how much you usually pay in
Income Tax, and how large the gain is.
The Chancellor also announced that the CGT charged on carried interest would rise to 32% from 28%, saying that the fund management industry provided ‘a vital contribution to our economy but... there needs to be a fairer approach to the way carried interest is taxed.’ She said that in order to encourage entrepreneurs to invest in their businesses, the lifetime limit for Business Asset Disposal Relief would be kept at £1
million and would remain at 10% this year, rising to 14% in April 2025 and 18% in 2026/27.
‘The OBR say these measures will raise 2.5 billion pounds by the end of the forecast,’ the Chancellor said. CGT raised 15 billion pounds in the last financial year, and is currently worth around 4% of receipts from all taxes on income. CGT is not normally payable when a person sells their primary residence, but is payable if on the sale of second properties.
Employers will have to pay 15p in NIC for every £1 paid to an employee
The Chancellor, Rachel Reeves, announced the government is to increase the rate of employer National Insurance Contributions (NICs) by 1.2 percentage points to 15% from 6 April 2025, which will raise £25bn in tax. This will mean employers will have to pay 15p in NIC for every £1 paid to an employee. In addition, the
Employers
NIC per-employee secondary threshold at which employers start to pay NI will be reduced from £9,100 per year to £5,000 per year.
The Chancellor said she was ‘taking the difficult decision to increase the rate to repair the public finances and help raise the revenue required to increase funding for public services.’
will have to pay 15p in NIC for every £1 paid to an employee. In addition, the NIC per-employee secondary threshold at which employers start to pay NI will be reduced from £9,100 per year to £5,000 per year.
While she recognised this was an additional cost to businesses, the Chancellor also said, ‘Successful businesses depend on successful schools, and healthy businesses depend on a healthy NHS.’ However, the Chancellor announced that the Employment Allowance would be raised, which she said would mean more small employers pay no NI, and around one million would pay the same or less. The allowance will increase from £5,000 to £10,500.
The government will also expand the Employment Allowance by removing the £100,000 eligibility threshold, to simplify and reform employer NICs so that all eligible employers will benefit.
Domicile status will be removed from the tax system next year, Chancellor Rachel Reeves announced during the Autumn Budget Statement 2024. In her speech, she labelled domicile status as an ‘outdated concept’. Instead, the Chancellor said she will introduce a ‘simpler’ residence-based scheme with considerations for workers coming to the UK on a temporary basis. According to the Office
for Budget Responsibility, the measures will raise £12.7bn over the next five years. This applies to a UK resident whose permanent home – or domicile – for tax purposes is outside the UK.
Reeves said she will introduce a new, residence-based scheme with ‘internationally competitive arrangements’ for those coming to the UK on a temporary basis.
‘We will also extend the temporary repatriation relief
to three years, and expand its scope, bringing billions of pounds of new funds into Britain.’
Offshore trusts will no longer be able to be used to shelter assets from Inheritance Tax, and there will be transitional arrangements in place for people who have made plans based on current rules.
The planned 50% reduction for foreign income in the first year of the new regime will be removed.
The devolved governments will receive an additional £6.6 billion through the operation of the Barnett formula in 2025/26. This includes £3.4 billion for the Scottish Government, £1.7 billion for the Welsh Government and £1.5 billion for the Northern Ireland Executive. This will enable substantial investment into schools, housing, health and social care, and transport across Scotland, Wales and Northern Ireland.
The government is formally launching the Office for Value for Money, with the appointment of an independent Chair. The Office will support Phase 2 of the Spending Review conducting an
assessment of where and how to root out waste and inefficiency, undertaking value for money studies in specific high-risk areas of cross-departmental spending and scrutinising investment proposals to ensure they offer value for money.
The government will shortly appoint a Covid Corruption Commissioner. They will lead work to recover public funds from companies that took unfair advantage of the COVID-19 pandemic.
Making compensation payments to victims of the Post Office Horizon IT Scandal
The government is providing around £1.8 billion in funding for
compensation payments to victims of the Horizon IT Scandal, between 2024/25 and 2027/28. This is in addition to £0.2 billion in previous years provided by the government and the Post Office.
Making compensation payments to victims of the Infected Blood Scandal
The government has set out plans to compensate victims of the infected blood scandal. The Budget provides £11.8 billion of funding for compensation.
The government will provide Ukraine with £2.26 billion ($3 billion) of budgetary support earmarked for military procurement
as part of the G7’s $50 billion ‘Extraordinary Revenue Acceleration (ERA)’ Loans for Ukraine scheme, intended to support Ukraine in the war against Russia’s illegal invasion.
The government will fully exit the NatWest shareholding and intends to do so by 2025/26 utilising a range of disposal methods, subject to market conditions and achieving value for money for taxpayers. The ongoing trading plan continues to support this objective, having now generated over £8.6 billion of proceeds since launch and reduced the government’s shareholding to below 16% on 7 October 2024. In total, the government has raised over £19.1 billion of proceeds from sales of the NatWest shareholding to date.
The government will invest £12 million to acquire further credit reference agency data to enable HMRC to better target their debt collection activities.
additional
As announced in July, the government will invest £1.4 billion over the next five years to recruit an additional 5,000 HMRC compliance staff, raising £2.7 billion per year in additional revenue by 2029/30.
Investing in additional HMRC debt management staff
The government will invest £262 million over the next five years to fund 1,800 HMRC debt management staff, raising £2 billion per year in additional revenue by 2029/30.
Modernising HMRC debt management IT systems
The government will invest £154 million to modernise HMRC’s debt management case system.
Investing to acquire credit reference agency data for HMRC
The government will invest £12 million to acquire further credit reference agency data to enable HMRC to better target their debt collection activities.
Modernising voluntary Self Assessment prepayment via the HMRC app
The government will invest £16 million to modernise HMRC’s app to allow Income Tax Self Assessment taxpayers to make voluntary advance payments in instalments.
Inheritance Tax digitalisation
The government will invest £52 million to digitalise the Inheritance Tax service from 2027/28 to provide a modern, easy-to-use system, making returns and paying tax simpler and quicker.
Digitalisation of Individual Savings Accounts
Digital reporting for Individual Savings Account (ISA) managers will be mandatory from 6 April 2027. Draft legislation will be published for a technical consultation in 2025.
Pre-populating Self Assessment tax returns with Child Benefit data (for the purposes of the High Income Child Benefit Charge)
The government will invest £4 million to enable HMRC to pre-populate Self Assessment tax returns with Child Benefit data to ensure the High Income Child Benefit Charge (HIBC) is accurately calculated and reported.
Confirming plans to mandate the reporting of benefits in kind via payroll software from April 2026
The government confirms that the use of payroll software to report and pay tax on benefits in kind will become mandatory, in phases, from April 2026. This will apply to Income Tax and Class 1A National Insurance contributions (NICs).
The government is committed to delivering Making Tax Digital (MTD) for Income Tax Self Assessment. The government will expand the rollout of MTD to those with incomes over £20,000 by the end of this Parliament, and will set out the precise timing for this at a future fiscal event.
Tackling tax noncompliance in the umbrella company market
To tackle the significant levels of tax avoidance and fraud in the umbrella company market, the government will make recruitment agencies responsible for accounting for PAYE on payments made to workers that are supplied via umbrella companies. Where there is no agency, this responsibility will fall to the end client business. This will take effect from April 2026. The measure will protect workers from large, unexpected tax bills caused by unscrupulous behaviour from non-compliant umbrella companies. The government is publishing a policy paper alongside
the Budget that provides further information on this measure.
The government will increase the late payment interest rate charged by HMRC on unpaid tax liabilities by 1.5 percentage points. This measure will take effect from 6 April 2025.
The government will publish draft legislation relating to loopholes in car ownership arrangements, through which an employer or a third party sells a car to an employee, often via a loan with no repayment terms and negligible interest, then buys it back after a short period. This arrangement means those benefiting don’t pay company car tax which other employees pay, and so this measure will seek to level the playing field. The changes will take effect from 6 April 2026.
The government will support charitable giving by legislating to prevent abuse of the charity tax rules, ensuring that only the intended tax relief is given to charities. These changes will take effect from April 2026 to give charities time to adjust to the new rules.
The government will change the way capital gains are taxed when a Limited Liability Partnership is liquidated, and assets are disposed of to a contributing member or person connected to them, to close a route used for avoidance of tax. Changes will come into effect from 30 October 2024 and will be legislated for through Finance Bill 2024/25.
The government will ensure shareholders cannot extract funds
untaxed from close companies by legislating to remove opportunities to side-step the anti-avoidance rules attached to the loans to participators regime. This change will apply from 30 October 2024.
The government will remove the exclusion from the Overseas Transfer Charge for transfers to Qualifying Recognised Overseas Pension Schemes in the European Economic Area (EEA) or Gibraltar from 30 October 2024 to address the risk of individuals receiving double tax-free allowances.
The government will increase collaboration between HMRC, Companies House and the Insolvency Service to tackle those using contrived corporate insolvencies and dissolutions, often referred to as ‘phoenixism’, to evade tax.
The government will expand HMRC’s counter-fraud capability to address high value and high harm tax fraud.
The government will strengthen HMRC’s scheme for rewarding informants, to encourage reporting of high value tax fraud and avoidance.
The government will publish a consultation in early 2025 on a package of measures to tackle promoters of marketed tax avoidance.
The government is committed to tackling offshore non-compliance as part of the ambition to close the tax gap and is committing additional resources, including the scaling up of compliance activity to tackle serious offshore non-compliance including fraud by wealthy customers and intermediaries, corporates they control and other connected entities.
The government is publishing a consultation document to tackle challenges arising from the mismatch of information on offshore interest being provided on a calendar year basis rather than a UK tax year basis. The consultation is seeking views on options to address this mismatch, including changes to the rules so that individuals are taxed on the non-UK interest arising in the year ended 31 December that ends in the tax year.
Cryptoasset Reporting Framework and amendments to the Common Reporting Standard
The government is publishing a summary of responses to the consultation on the implementation of the Cryptoasset Reporting Framework (CARF) and amendments
to Common Reporting Standard. This includes a decision to extend the CARF’s reporting requirements to UK users. The government will legislate in Finance Bill 2024/25 and has published draft regulations to implement the revised rules.
The government is introducing a package of reforms to the taxation of Employee Ownership Trusts and Employee Benefit Trusts. These reforms will prevent opportunities for abuse, ensuring that the regimes remain focused on encouraging employee ownership and rewarding employees. The changes will take effect from 30 October 2024.
The government is publishing a consultation on whether to make
the renewal of further public sector licences conditional on applicants demonstrating they are appropriately registered for tax.
The government is publishing a consultation on reforming HMRC’s correction powers, exploring changes to HMRC’s existing powers and processes, and a potential new power to require taxpayers to correct mistakes themselves.
The government is publishing a summary of responses to the call for evidence ‘The Tax Administration Framework Review: enquiry and assessment powers, penalties, safeguards’.
The government will engage with stakeholders before introducing a set of measures to simplify tax administration and improve customer experience in the spring.
The government will bring in line the conditions of Overseas Pension Schemes (OPS) and Recognised Overseas Pension Schemes (ROPS) established in the EEA with OPS and ROPS established in the rest of the world from 6 April 2025.
Autumn budget statement
2024 These reforms will prevent opportunities for abuse, ensuring that the regimes remain focused on encouraging employee ownership and rewarding employees.
The government will increase the Lower Earnings Limit (LEL) and the Small Profits Threshold (SPT) by the September 2024 CPI rate of 1.7% from 2025/26.
The government will increase the rate of employer NICs from 13.8% to 15% from 6 April 2025. The Secondary Threshold is the point at which employers become liable to pay NICs on employees’ earnings, and is currently set at £9,100 a year. The government will reduce the Secondary Threshold to £5,000 a year from 6 April 2025 until 6 April 2028, and then increase it by Consumer Price Index (CPI) thereafter.
The Employment Allowance currently allows businesses with employer NICs bills of £100,000 or less in the previous tax year to deduct £5,000 from their employer NICs bill. The government will increase the Employment Allowance from £5,000 to £10,500, and remove the £100,000 threshold for eligibility, expanding this to all eligible employers with employer NICs bills from 6 April 2025.
The government is extending the employer NICs relief for employers hiring qualifying
veterans for a further year from 6 April 2025 until 5 April 2026. This means that businesses will continue to pay no employer NICs up to annual earnings of the Veterans Upper Secondary Threshold of £50,270 for the first year of a veteran’s employment in a civilian role.
The government will increase the Lower Earnings Limit (LEL) and the Small Profits Threshold (SPT) by the September 2024 CPI rate of 1.7% from 2025/26.
For those paying voluntarily, the government will also increase Class 2 and Class 3 NICs rates by September CPI of 1.7% in 2025/26. The LEL will be £6,500 per annum (£125 per week) and the SPT will be £6,845 per annum. The main Class 2 rate will be £3.50 per week, and the Class 3 rate will be £17.75 per week.
The government will legislate to abolish the remittance basis of taxation for non-UK domiciled individuals and replace it with a simpler and internationally
competitive residence-based regime, which will take effect from 6 April 2025. Individuals who opt-in to the regime will not pay UK tax on foreign income and gains (FIG) for the first four years of tax residence. From 6 April 2025 the government will introduce a new residence-based system for Inheritance Tax (IHT), ending the use of offshore trusts to shelter assets from IHT, and scrap the planned 50% reduction in foreign income subject to tax in the first year of the new regime.
For Capital Gains Tax purposes, current and past remittance basis users will be able to rebase personally held foreign assets to 5 April 2017 on a disposal where certain conditions are met.
Overseas Workday Relief will be retained and reformed, with the relief extended to a four-year period and the need to keep the income offshore removed.
The amount claimed annually will be limited to the lower of £300,000 or 30% of the employee’s net employment income.
The government is extending the Temporary Repatriation Facility to three years, expanding
the scope to offshore structures, and simplifying the mixed fund rules to encourage individuals to spend and invest their FIG in the UK.
The government will bring unused pension funds and death benefits payable from a pension into a person’s estate for Inheritance Tax purposes from 6 April 2027. This will restore the principle that pensions should not be a vehicle for the accumulation of capital sums for the purposes of inheritance, as was the case prior to the 2015 pensions reforms.
The government confirms it will extend the existing scope of agricultural property relief from 6 April 2025 to land managed under an environmental agreement with, or on behalf of, the UK government, devolved
governments, public bodies, local authorities or approved responsible bodies.
The government will reform these Inheritance Tax reliefs from 6 April 2026. In addition to existing nil rate bands and exemptions, the current 100% rates of relief will continue for the first £1 million of combined agricultural and business property to help protect family businesses and farms. The rate of relief will be 50% thereafter, and in all circumstances for quoted shares designated as ’not listed’ on the markets of recognised stock exchanges, such as AIM.
Tax: nil rate band and residence nil rate band
The Inheritance Tax nil rate bands are already set at current levels until 5 April 2028 and will stay fixed at these levels for a further two years until 5 April 2030. The nil rate band will continue at £325,000, the residence nil rate band will continue at £175,000 and the
residence nil rate band taper will continue to start at £2 million. Qualifying estates can continue to pass on up to £500,000 and the qualifying estate of a surviving spouse or registered civil partner can continue to pass on up to £1 million without an Inheritance Tax liability.
The government will uprate Qualifying Care Relief, the amount of Income Tax relief available to foster carers and shared lives carers, by the September 2024 CPI rate of 1.7% from 6 April 2025.
Married Couple’s Allowance and Blind Person’s Allowance 2025/26
The government will uprate the Married Couple’s Allowance and the Blind Person’s Allowance by the September 2024 CPI rate of 1.7% from 6 April 2025.
Annual subscription limits will remain at £20,000 for ISAs, £4,000 for Lifetime ISAs and £9,000 for
Junior ISAs and Child Trust Funds until 5 April 2030.
The starting rate for savings will be retained at £5,000 for 2025/26, allowing individuals with less than £17,570 in employment or pensions income to receive up to £5,000 of savings Income Taxfree.
The government will extend the current Help to Save scheme until 5 April 2027. With effect from 6 April 2025, eligibility will be extended to all Universal Credit claimants who are in work. A delivery consultation, including details of a reformed and improved scheme, has been published alongside the Budget.
The government will not proceed with the British ISA due to mixed responses to the consultation launched in March 2024.
The government will legislate
in Finance Bill 2024/25 to clarify the Income Tax treatment of Statutory Neonatal Care Pay. This will ensure the payment is liable to Income Tax and ensures consistency with the tax treatment of other statutory maternity and paternity pay schemes.
Consequential to the Neonatal Care (Leave and Pay) Act – From 6 April 2025, the notice an employer must provide to an employee under a Share Incentive Plan regarding the possible effect of deductions from salary on entitlement to social security benefits and statutory payments must refer to statutory neonatal care pay. This will be legislated for in Finance Bill 2024/25.
The government will commission an independent review of the Loan Charge to help bring the matter to a close for those affected whilst ensuring fairness for all taxpayers. The Exchequer Secretary will set out further details about the review in due course.
Annual subscription limits will remain at £20,000 for ISAs, £4,000 for Lifetime ISAs and £9,000 for Junior ISAs and Child Trust Funds until 5 April 2030.
The lower and higher main rates of Capital Gains Tax will increase to 18% and 24% respectively for disposals made on or after 30 October 2024. The rate for Business Asset Disposal Relief and Investors’ Relief will increase to 14% from 6 April 2025, and will increase again to match the lower main rate at 18% from 6 April 2026. The new rates will be legislated in Finance Bill 2024/25.
The lifetime limit for Investors’ Relief will be reduced to £1 million for all qualifying disposals made on or after 30 October 2024, matching the lifetime limit for Business Asset Disposal Relief. This will be legislated in Finance Bill 2024/25.
The government will reform the way carried interest is taxed, ensuring that this is in line with the economic characteristics of the reward. From April 2026, all
carried interest will be taxed within the Income Tax framework, with a 72.5% multiplier applied to qualifying carried interest that is brought within charge. As an interim step, the two Capital Gains Tax rates for carried interest will both increase to 32% from 6 April 2025. The government will also consult on introducing further conditions of access into the regime.
From 1 January 2025, to secure additional funding to help deliver the government’s commitments relating to education and young people, all education services and vocational training provided by a private school in the UK for a charge will be subject to VAT at the standard rate of 20%. This will also apply to boarding services provided by private schools. The government has published a response to its technical consultation on this policy. To protect pupils with special educational needs that can only be met in a private school, local authorities and devolved governments that fund these
places will be compensated for the VAT they are charged on those pupils’ fees.
The government greatly values the contribution of our diplomatic staff and serving military personnel. The Continuity of Education Allowance (CEA) provides clearly defined financial support to ensure that the need for frequent mobility, which often involves an overseas posting, does not interfere with the education of their children.
Ahead of the VAT changes on 1 January, the MOD and the FCDO will increase the funding allocated to the CEA to account for the impact of any private school fee increases on the proportion of fees covered by the CEA in line with how the allowance normally operates. The MOD and FCDO will set out further details shortly.
As announced on 29 July 2024, private schools in England will no longer be eligible for charitable rate relief. The Ministry of Housing, Communities and Local Government (MHCLG) will bring
forward primary legislation to amend the Local Government Finance Act 1988 to end relief eligibility for private schools. This change is intended to take effect from April 2025, subject to Parliamentary process. Private schools which are ‘wholly or mainly’ concerned with providing full-time education to pupils with an Education, Health and Care Plan will remain eligible for relief.
For 2025/26, eligible Retail, Hospitality and Leisure (RHL) properties in England will receive 40% relief on their business rates liability. RHL properties will be eligible to receive support up to a cash cap of £110,000 per business.
For 2025/26, the small business multiplier in England will be frozen at 49.9p. The government will lay secondary legislation to freeze the small business multiplier. The standard multiplier will be uprated by the September 2024 CPI rate to 55.5p.
The government intends to introduce permanently lower multipliers for Retail, Hospitality and Leisure (RHL) properties from 2026/27, paid for by a higher multiplier for properties with rateable values above £500,000.
A discussion paper has been published setting the direction of travel for transforming the business rates system and inviting industry to a dialogue about future reforms.
Business rates: Disclosure Consultation Summary of Responses
The Valuation Office Agency (VOA) is publishing a response to the March 2023 Consultation on Disclosure, which sets out the next steps on increasing the transparency of business rates valuations by disclosing more information.
the Higher Rates on Additional Dwellings
From 31 October 2024, the Higher Rates for Additional Dwellings (HRAD) surcharge on Stamp Duty Land Tax (SDLT) will be increased by 2 percentage points from 3% to 5%. Increasing HRAD ensures that those looking to move home, or purchase their first property, have a comparative advantage over second home buyers, landlords and businesses purchasing residential property. This is expected to result in 130,000 additional transactions over the next five years by firsttime buyers and other people buying a primary residence. This surcharge is also paid by non-UK residents purchasing additional property.
The single rate of SDLT that is charged on the purchase of dwellings costing more than £500,000 by corporate bodies will also be increased by 2 percentage points from 15% to 17%.
From 1 November 2024, the
Energy Profits Levy (EPL) rate will rise by 3 percentage points to 38%, the investment allowance will be abolished and the rate of the decarbonisation allowance will be set at 66% so its cash value is maintained. To provide certainty and to support a stable energy transition, the government will make no additional changes to tax relief available within EPL. The levy will end on 31 March 2030. The government will legislate for these measures in Finance Bill 2024/25. To support long-term stability and predictability in the oil and gas fiscal regime, the government will publish a consultation in early 2025 on how the taxation of oil and gas profits will respond to price shocks after the EPL ends. The government will also continue to have regular engagement with the sector to understand the evolving context of oil and gas investment, supported by biannual fiscal forums.
industry, support investment, protect jobs and ensure a fair, orderly and prosperous transition in the North Sea in line with our climate and legal obligations.
Change Levy main and reduced 2026/27 rates
The main rates of the Climate Change Levy (CCL) for gas, electricity and solid fuels will be uprated in line with Retail Price Index (RPI) in 2026/27. The main rate for liquefied petroleum gas will continue to be frozen. The reduced rates of CCL will remain at an unchanged fixed percentage of the main rates.
The government will legislate in Finance Bill 2024/25 to provide relief for payments oil and gas companies make into decommissioning funds in relation to assets sold for use in Carbon Capture Usage and Storage, maintaining the tax treatment had these assets instead been decommissioned. This legislation will also remove receipts from the sale of these assets from the scope of the EPL.
from Offshore Oil and Gas Production and Development
The government is publishing a consultation on new environmental guidance for assessing end-use emissions related to oil and gas projects. This consultation seeks to provide stability for the oil and gas
will increase rates of Air Passenger Duty (APD). This equates to £1 more for those taking domestic flights in economy class, £2 more for those flying to short-haul destinations in economy class, £12 for long-haul destinations, and relatively more for premium economy and business class passengers. The higher rate, which currently applies to larger private jets, will rise by a further 50% in 2026/27. From 2027/28 onwards, all rates will be uprated by forecast RPI and rounded to the nearest penny. The government is also consulting on extending the scope of the APD higher rate to capture all passengers travelling in private jets already within the APD regime.
The government will maintain Carbon Price Support rates in Great Britain at a level equivalent to £18 per tonne of CO2 in 2026/27.
The government has published its response to the March 2024 consultation on the introduction of a UK carbon border adjustment mechanism (CBAM). The response confirms that the UK CBAM will be introduced on 1 January 2027, placing a carbon price on goods that are at risk of carbon leakage imported to the UK from the aluminium, cement, fertiliser, hydrogen and iron & steel sectors. Products from the glass and ceramics sectors will not be in scope of the UK CBAM from 2027 as previously proposed. The registration threshold will be set at £50,000, retaining over 99% of imported emissions within the scope of the CBAM, while removing over 80% of otherwise registrable businesses. Over 70% of those removed from the CBAM altogether by this threshold are micro, small or medium-sized businesses.
For 2026/27, the government
The government will freeze fuel duty rates for 2025/26, a tax cut worth £3 billion over 2025/26 which represents a £59 saving for the average car driver. The temporary 5p cut in fuel duty rates will be extended by 12 months and will expire on 22 March 2026. The planned inflation increase for 2025/26 will also not take place.
The government is setting rates for Company Car Tax (CCT) for 2028/2029 and 2029/30 to provide long-term certainty for taxpayers and industry. CCT rates will continue to strongly incentivise the take-up of electric vehicles, while rates for hybrid vehicles will be increased to align more closely with rates for internal combustion engine (ICE) vehicles, to focus support on electric vehicles.
• Appropriate Percentages (APs) for zero emission and electric vehicles will increase by 2 percentage points per year in 2028/29 and 2029/30, rising to an AP of 9% in 2029/30.
• APs for cars with emissions of 1 – 50 g of CO2 per kilometre, including hybrid vehicles, will rise to 18% in 2028/29 and 19% in 2029/30.
• APs for all other vehicle bands will increase by 1 percentage point per year in 2028/29 and 2029/30. The maximum AP will also increase by 1
The government will freeze fuel duty rates for 2025/26, a tax cut worth £3 billion over 2025/26 which represents a £59 saving for the average car driver.
percentage point per year to 38% for 2028/2029 and 39% for 2029/2030. This means for vehicle bands with emissions of 51 g of CO2 per kilometre and over, APs will increase to 19% –38% in 2028/29 and 20% – 39% in 2029/30.
The government will uprate standard Vehicle Excise Duty (VED) rates for cars, vans and motorcycles, excluding first-year rates for cars, in line with the RPI from 1 April 2025.
The government will change the VED First-Year Rates for new cars registered on or after 1 April 2025 to strengthen incentives to purchase zero emission and electric cars, by widening the differentials between zero emission, hybrid and internal combustion engine (ICE) cars.
• Zero-emission cars will pay the lowest first-year rate at £10 until 2029/30.
• Rates for cars emitting 1-50 g/ km of CO2, including hybrid vehicles, will increase to £110 for 2025/26.
• Rates for cars emitting 51-75 g/km of CO2, including hybrid vehicles, will increase to £130 for 2025/26.
• All other rates for cars emitting 76 g/km of CO2 and above will double from their current level for 2025/26.
These changes will apply from 1 April 2025.
The government recognises the disproportionate impact of the current VED Expensive Car Supplement threshold for those purchasing zero-emission cars and will consider raising the threshold for zero-emission cars only at a future fiscal event to make it easier to buy electric cars.
2025/26 Van Benefit Charge, Van Fuel Benefit Charge and Car Fuel Benefit Charge
The government will uprate the
Van Benefit Charge and Car and Van Fuel Benefit Charges by CPI from 6 April 2025.
The government will support pubs and the wider on-trade by cutting alcohol duty rates on draught products below 8.5% alcohol by volume (ABV) by 1.7%, so that an average ABV strength pint will pay 1p less in duty. The government will also increase the discount provided to small producers for non-draught products, and maintain the cash discount provided to small producers for draught products, increasing the relative value of Small Producer Relief. Alcohol duty rates on non-draught alcoholic products will increase in line with RPI inflation. These measures will take effect from 1 February 2025. The current temporary wine easement will also end as planned on 1 February 2025.
inflation between 2018 and 2024. Annual rate increases will occur on 1 April, starting on 1 April 2025, and will also reflect future yearly CPI increases.
To ensure the SDIL continues to encourage reformulation to help tackle obesity, the government will review the current SDIL sugar content thresholds and the current exemptions for milk-based and milk substitute drinks. Contributions from all interested stakeholders are welcomed as part of this review.
2024 is eligible. This measure was announced at Spring Budget 2024 and has been legislated.
Theatre Tax Relief, Orchestra Tax Relief and Museums and Galleries Exhibitions Tax Relief: 45% / 40% rates from 1 April 2025
From 1 April 2025, the rates of Theatre Tax Relief, Orchestra Tax Relief and Museums and Galleries Exhibitions Tax Relief will be set at 40% for non-touring productions and 45% for touring productions and all orchestra productions. These rates apply UK-wide. This measure was announced at Spring Budget 2024 and has been legislated.
The government will consult on ways to ensure that small brewers can retain and expand their access to UK pubs, and maximise drinkers’ choice, including through provisions to enable more ‘guest beers’.
The government will consult with industry to improve the Spirit Drinks Verification Scheme (SDVS) and make an investment of up to £5 million to support the SDVS.
Alcohol Duty Stamps Scheme: Abolition
The Alcohol Duty Stamps Scheme will end following a review by HMRC. The government will introduce legislation in Finance Bill 2024/25 to end the Scheme from 1 May 2025.
To protect its real terms value, the Soft Drinks Industry Levy (SDIL) will be increased, over the next five years, to reflect the 27% CPI
The government will renew the tobacco duty escalator at RPI+2% on all tobacco products until the end of this Parliament. To reduce the gap with cigarette duty, the rate on hand-rolling tobacco will increase by a further 10% this year. These changes will take effect from 6pm on 30 October 2024 and will be included in Finance Bill 2024/25.
A flat-rate excise duty on all vaping liquid will be introduced from 1 October 2026 at £2.20 per 10ml vaping liquid, accompanied by an equivalent one-off increase of £2.20 per 100 cigarettes / 50g of tobacco in tobacco duty to maintain the financial incentive to switch from tobacco to vaping.
The Gross Gaming Yield bandings for gaming duty will be frozen from 1 April 2025 until 31 March 2026.
From 1 April 2025, UK films with budgets under £15 million and a UK lead writer or director will be able to claim an enhanced 53% rate of Audio-Visual Expenditure Credit, known as the Independent Film Tax Credit. Expenditure incurred from after 1 April 2024 on films that began principal photography on or after 1 April
The government will discuss widening the use of advance clearances in Research & Development reliefs with stakeholders, with the intention to consult on lead options in spring 2025. The government has also published a document setting out further information on the scale and characteristics of error and fraud up to 2023/24, the policy and operational changes that have been made to address this, and further data on customer experience.
The government will launch a consultation in spring 2025 to develop a new process that will give investors in major projects increased tax certainty in advance.
The government will extend for a further year the 100% First Year Allowances (FYA) for qualifying expenditure on zero-emission cars and the 100% FYA for qualifying expenditure on plant or machinery for electric vehicle chargepoints, to 31 March 2026 for Corporation Tax purposes and to 5 April 2026 for Income Tax purposes.
The government is setting a new welfare cap in its fiscal framework and has reset the cap for 2029/30. The margin has been revised and, to support ongoing spending control and to strengthen accountability, the Department for Work and Pensions will publish an annual report on welfare spending.
The government will migrate Employment and Support Allowance claimants to Universal Credit from September 2024 instead of 2028. This move will bring more people into a modern benefit regime, continuing to ensure they are supported to look for and move into work.
As announced in July 2024, the Winter Fuel Payment will be targeted to those in receipt of Pension Credit or certain other income-related benefits from
winter 2024/25, saving an average £1.5 billion of taxpayers’ money each year. The Winter Fuel Payment continues to be worth £200 for eligible households, or £300 for eligible households with someone aged over 80.
The government aims to maximise Pension Credit take-up and ensure those eligible for this benefit are receiving it. There has been a significant increase in Pension Credit claims following the announcement to target Winter Fuel Payments. The government is optimising the use of Housing Benefit data and individuals applying for Housing Benefit from Spring 2025 will be proactively encouraged to apply for Pension Credit. The government is contacting 120,000 pensioners currently in receipt of Housing Benefit inviting them to claim Pension Credit too.
Bringing together the administration of Housing Benefit and Pension Credit
The administration of Pension
Credit and Housing Benefit will be brought together for new claimants from 2026. This is two years earlier than previously announced, and will support more people to receive the benefits that they are entitled to.
From April 2025, the National Living Wage will increase to £12.21 per hour for all eligible employees, and the National Minimum Wage for 18 to 20-year-olds will increase to £10.00 per hour for all eligible workers. The government is also increasing the minimum wages for Under-18s and Apprentices to £7.55 per hour, and the Accommodation Offset rate will increase to £10.66 a day.
State Pension and Pension Credit
for 2025/26
The government will maintain the State Pension Triple Lock for the duration of this parliament.
The basic and new State Pension will increase by 4.1% from April 2025, in line with earnings growth. The Pension Credit Standard Minimum Guarantee will also
increase by 4.1% from April 2025.
DWP and HMRC workingage benefits uprating for 2025/26
The government will uprate working-age benefits by September 2024 CPI of 1.7% from April 2025. This will see around 5.7 million families on Universal Credit receive a further £150 on average in 2025/26.
The government will shortly publish the Get Britain Working White Paper, which will set out its £240 million investment to trail new ways of getting people back into work. The government will test new approaches and collect robust evidence on how to tackle the root causes of ill-healthrelated inactivity, support young people who are ‘not in education, employment or training’ (NEET), and help people to develop their careers.
The government will engage with industry over the coming months on the Mortgage Guarantee Scheme (MGS) to develop plans to make MGS permanently available to support lending at 95% loan to value. The government intends to announce further details of the scheme in Phase 2 of the Spending Review.
The government is consulting on a new long-term social housing rent settlement of CPI+1% for five years to offer certainty for social housing providers and give the sector the confidence to build tens of thousands of new social homes in England. The government will be consulting on whether further measures could provide even greater certainty.
Reducing discounts on the Right to Buy scheme, and enabling councils in England to keep receipts generated by sales, will deliver on the government’s commitment to protect existing council housing stock and boost council capacity to ensure that vital social housing is available to those who need it most.
Autumn budget statement 2024
The government will engage with industry over the coming months on the Mortgage Guarantee Scheme (MGS) to develop plans to make MGS permanently available to support lending at 95% loan to value
The government will set out its long-term vision for local growth funding in Phase 2 of the Spending Review. The government is continuing to invest in programmes which are important to growth and provide stability for local leaders and investors.
The government is setting out the next steps for delivering its strategy for regional growth, across investment, devolution and local growth funding reform – which will create good jobs and spread prosperity across the UK.
The government is confirming funding for Investment Zones and Freeports across the UK, announcing the approval of the East Midlands Investment Zone to support advanced manufacturing and green industries, and confirming that five new customs sites will be designated in existing Freeports shortly. The government will also work to ensure the Freeports policy model aligns with the national Industrial Strategy.
Supporting Scottish trade and investment by providing £0.75 million to establish Brand Scotland, a programme run by the Scotland Office to promote Scottish investment opportunities and exports across the globe.
The government’s green paper launch on its modern Industrial Strategy sets out eight growthdriving sectors, announcing that government will produce sector plans for each as part of its promise to help these sectors thrive.
The Budget confirms long-term support for growth-driving sectors ahead of the full modern Industrial Strategy’s publication in the Spring, including:
• Committing £975 million in R&D funding for the aerospace sector over five years. Further details will follow in Phase 2 of the Spending Review.
• Committing over £2 billion in R&D and Capital funding over five years to support the automotive sector, including the zero emissions vehicle manufacturing sector and supply chain. Further details will follow in Phase 2 of the spending Review.
• Up to £520 million for a new Life Sciences Innovative Manufacturing Fund to drive growth and build resilience for future health emergencies.
• Tax reliefs for the UK’s worldleading creative industries, which will provide £15 billion of support over the next five years.
UK Export Finance will support companies supplying critical minerals to UK exporters in growth-driving sectors such as EV battery production, clean
energy, aerospace and defence. This new support targets projects that secure critical minerals from overseas and will boost supply chain resilience in key manufacturing sectors.
The government will bring forward a Small Business Strategy Command Paper in 2025. This will set out the government’s vision for supporting small businesses, from boosting scaleups to growing the co-operative economy, across key policy areas such as creating thriving high streets, making it easier to access finance, opening up overseas and domestic markets,building business capabilities and providing a strong business environment. The paper will complement the government’s forthcoming Industrial Strategy and Trade Strategy.
Funding for the Made Smarter Adoption programme will double to £16 million in 2025/26, supporting more small manufacturing businesses to adopt advanced digital technologies and enabling the programme to be expanded to all nine English regions.
East West Rail will connect Oxford, Milton Keynes and Cambridge and unlock land for housing and laboratories, supporting the wider Cambridge life sciences cluster The Budget will announce the East West Rail consultation, the next step in the
project, which will be launched by the Secretary of State for Transport in November 2024.
The government is announcing that work will begin to develop a social impact investment vehicle, led by the Chief Secretary to the Treasury, working with DCMS, to support the government to deliver its missions. This will bring together socially motivated investors, the voluntary sector and government to tackle complex social problems. This will be designed and developed through engagement with the sector, with further details to be announced at Phase 2 of the Spending Review.
The government will transfer the Investment Reserve Fund in the Mineworkers’ Pension Scheme to the scheme’s Trustees. This will be paid out as an additional pension to members of the scheme. The government will also take forward a review of the existing surplus sharing arrangements.
The government will deliver the Lifelong Learning Entitlement (LLE), but will postpone its launch by one year. The LLE will launch in September 2026 for learners studying courses starting on or after 1 January 2027.
If you are in your 40s or 50s, you have likely contributed to a pension for quite some time. Over the years, you may have accumulated multiple employer workplace pensions. However, when did you last thoroughly examine your pension and retirement strategy?
Having a documented retirement plan can help you feel more prepared for this stage of your life, ensuring you have a sufficient income when you stop working. Here, we explore several factors to consider when reviewing your savings. If you don’t yet have a plan, in this article, we consider a helpful starting point.
It’s always a good idea to reassess your plan to ensure you’re on track to achieve the retirement income and lifestyle you desire. Priorities and circumstances can change, necessitating adjustments to your plan.
Begin by asking yourself these two key questions:
How would you like to spend your retirement?
Consider what you’d like to do during your retirement to help determine how much money you’ll need. Whether it’s holidaying, investing more time in hobbies or starting a new business venture, it’s crucial to account for everyday expenses such as rent or mortgage payments, household bills and food shopping. Additionally, it’s wise to set aside savings for potential medical needs or home care as you age. When planning your expenses, don’t forget to factor in inflation. Prices tend to increase over time, so having an extra financial
cushion can be beneficial.
When would you like to retire, and for how long?
Is the age you’d like to retire still the same, or has it changed? With life expectancy increasing, you’ll need to consider how much money you’ll need throughout your retirement. Dividing the total figure into an annual salary, followed by a monthly income, will help you determine if your savings are sufficient.
Consider how you’ll access your retirement income. Different options have various terms and conditions that affect your takehome pay.
If possible, set goals to pay off any debts before you retire. Clearing debts can provide peace of mind, as it’s one less expense to worry about.
Your retirement fund could include workplace pensions, personal pensions, Individual Savings Accounts (ISAs), investments and the State Pension. When reviewing your pension pot, check the amount and track performance, and take action if necessary.
Consider the following when reviewing your pension pot:
• Review your workplace pension contributions. Can you afford to increase them, even slightly? Even small annual increases can make a significant difference over time.
• Check your employer’s contributions. Many employers offer benefits such as matching increases in your contributions to your workplace pension.
• Keep track of all your pension pots to avoid forgetting about them. Consider whether you want to keep working part-time or flexible hours, which will give you more time to improve your savings.
• Remember, the value of investments can fall as well as rise, and there are no guarantees. When you start drawing benefits, the value of your pension pot might be less than the total contributions made.
The State Pension alone is unlikely to support your retirement. If you’re eligible, the amount you receive will depend on your National Insurance contribution record. You can check your State Pension forecast on the government’s website to see how much you could receive when you can claim it and if you can improve it.
From age 55 (57 from April 2028), you can access some or all of your pension benefits. Personal circumstances, lifestyle and health will influence your right income option. Some contracts restrict your options, and there are tax implications to consider.
Planning for retirement is a step towards improving your financial wellbeing. It’s about how you feel regarding control over your financial future and your relationship with money. Focus on what makes your life enjoyable and meaningful now and in retirement.
It’s always a good idea to reassess your plan to ensure you’re on track to achieve the retirement income and lifestyle you desire.
Want to improve your financial wellbeing?
Please get in touch with us if you require further information or assistance in planning your retirement. We’re here to help you navigate your financial future with confidence.
In our increasingly hectic lives, finding moments of peace and clarity is essential for maintaining mental and emotional wellbeing. Mindfulness, the practice of being present and fully engaged with the current moment, has gained popularity as a powerful tool for reducing stress and enhancing overall life satisfaction. This article explores mindfulness activities that can be easily integrated into your daily routine to foster a sense of calm and balance.
One of the simplest yet most effective mindfulness practices is mindful breathing. This activity focuses on your breath as it flows in and out of your body. By concentrating on the rhythm of your breathing, you can anchor yourself in the present moment, allowing distractions and worries to fade away. Even a few minutes of mindful breathing daily can significantly improve your focus and reduce stress levels.
Incorporating mindful breathing into your routine is straightforward. Begin by finding a comfortable, quiet space to sit or lie down with minimal interruptions. Close your eyes,
take a deep breath through your nose, and then slowly exhale through your mouth. As you breathe, notice the sensations of the air entering and leaving your body. If your mind wanders, gently bring your focus back to your breath.
Another beneficial mindfulness activity is body scan meditation. This practice involves mentally scanning your body from head to toe, paying attention to tension, discomfort, or relaxation areas. By becoming more aware of physical sensations, you can cultivate a deeper connection between your mind and body, promoting relaxation and stress relief.
To practise a body scan, find a comfortable position, sitting or lying down. Close your eyes and take a few deep breaths to centre yourself. Begin by focusing on your toes and noticing any sensations or tension. Gradually move your attention upwards through your legs, torso, arms, and finally to the top of your head. As you progress, acknowledge feelings or sensations without judgement, simply observing them with
curiosity.
Mindful walking is an excellent way to incorporate mindfulness into your daily routine, especially if you struggle to sit still for meditation. This practice involves bringing full awareness to walking, paying attention to each step and the corresponding sensations in your body. You can transform a simple walk into a meditative experience by engaging with the present moment while moving.
To practise mindful walking, choose a quiet path or space where you can walk slowly and undisturbed. Begin by standing still and taking a few deep breaths to ground yourself. As you start walking, focus on the sensation of your feet touching the ground, the movement of your legs, and the rhythm of your breath. If your mind begins to drift, gently redirect your attention back to the physical act of walking.
In addition to physical practices, mindfulness can be cultivated
through gratitude journaling. This activity involves regularly writing down things you are grateful for, fostering a positive mindset and increasing awareness of the good in your life. By focusing on gratitude, you can shift your attention away from negative thoughts and cultivate a sense of contentment and resilience.
To start a gratitude journal, set aside a few minutes daily to reflect on positive experiences, people, or things in your life. Write down at least three things you are thankful for, and consider including details about why they are meaningful to you. Over time, reviewing your entries can provide a powerful reminder of the abundance and positivity surrounding you.
Integrating mindfulness activities into your daily routine can significantly enhance your mental and emotional wellbeing, providing tools for managing stress and cultivating inner peace. Whether you choose mindful breathing, body scan meditation, mindful walking, or gratitude journaling, each practice offers unique benefits that can help you lead a more balanced and fulfilling life.
One of the simplest yet most effective mindfulness practices is mindful breathing.
Carefully consider all your options before making a change
When you remortgage, you switch from one mortgage to another on your own home. This might be a new deal with your existing lender, or you could move to a new mortgage with a different lender.
Remortgaging is an important financial decision and can be as significant as obtaining your first mortgage. Your mortgage is your biggest financial commitment, so it’s crucial to carefully consider all your options before making a change.
There are various reasons why you might contemplate remortgaging:
Your current mortgage term is ending: You’ll be moved onto your lender’s standard variable rate (SVR), which you want to avoid at all costs since the interest rate is almost always much higher.
Increasing your borrowing: You might want to free up funds for a significant expense, move home, or need additional money to fund a home improvement project. Other reasons might include paying for measures to improve your home’s energy efficiency, covering school fees, investing in a buy-to-let property, or consolidating debts.
Reducing monthly repayments and overpaying: You can reduce your monthly repayments to secure a cheaper deal and make your mortgage more affordable
each month. You don’t have to borrow more to switch to an alternative deal with more favourable rates. Although there may be fees involved in exiting your current deal, it could still be financially advantageous.
Overpaying your mortgage: Your circumstances may have changed, and you may want to move to a mortgage provider that allows you to overpay your mortgage by more than your current one permits.
Responding to rate changes and property value increases: Changes in the Bank of England base rate can prompt you to shop around for a more competitive rate if you’re on a variable-rate mortgage. Moreover, if your property has increased in value, a lower loan-to-value (LTV) ratio might enable you to qualify for a reduced mortgage rate.
Fixing your payments: If you anticipate changes in your circumstances or foresee rate increases, you might remortgage to a fixed-rate deal to provide certainty of your monthly mortgage outgoings.
Ensure you are on the best deal and not overpaying
Selling a property with a mortgage presents choices such as porting your mortgage or repaying it and switching to a new deal. We can help you determine the best option for you. It can be prudent to look at remortgaging every few
years to ensure you are on the best deal and not overpaying.
Set a reminder for three to six months before your fixed deal ends. This will give you sufficient time to discuss your options with us and complete your remortgage application in time to switch to a more competitive deal. If you’ve paid off a substantial amount of your mortgage over the past few years and gained equity in your home, switching to a different mortgage could reduce the interest you pay every month because you can take advantage of alternative deals.
considerations
You may incur penalties if you switch before your current mortgage deal expires. However, we can calculate whether it may still be cheaper for you to pay the penalties and switch.
It typically takes between 18-40 days from application to offer to remortgage. However, there are no hard and fast rules regarding the time it takes.
Alan Holmes Mortgage and Protection Adviser
Ready for a discussion about your remortgage requirements?
Please get in touch with us if you require further information or would like to discuss your remortgage options in detail. We are here to help you through the process and secure the right deal for your circumstances.
You don’t have to borrow more to switch to an alternative deal with more favourable rates.
Increasing longevity and evolving demographics have left many middle-aged individuals juggling careers with caring for both ageing parents and children. This issue is particularly acute for ambitious professionals who prioritised establishing their careers before starting a family in their thirties or forties.
On top of financial constraints, caring for elderly parents and young children places immense pressure on the most precious resource of all for working parents – time.
The emotional and physical toll of feeling constantly at the coalface may generate significant stress. Choosing your priorities carefully can mean disapproval from those who think your attention should be elsewhere, often focusing on them.
Has the squeeze got tighter?
Rising inflation and interest rates have created clear winners and losers. Those with mortgages have been among the losers. As fixed rate deals have ended, moving onto a variable or new fixed rate has meant accepting higher payments or extending terms to keep monthly outlays the same.
Coupled with inflation, this has reduced real disposable incomes. The winners have been those who are debt-free and those who have savings and investments. Typically, these individuals are retired, and the increased income may be surplus to requirements.
The cost of education
School fees and care costs have historically risen faster than
inflation. The cost of private education has soared. Fees jumped by an average of 5.1% in 2022[1]
The average cost per child is now £6,944 a term for day pupils and £12,344 a term for boarders[2], and of course now there is the VAT added to school fees to consider too. There are big regional variations, too. With the rising cost of living, private schools have had little choice but to pass energy and food costs on to parents. Imagine those costs for a family of four.
It is no wonder house prices are so high in the catchment areas of state schools with good Ofsted ratings. Many parents or guardians rely on other sources for some or all of the fees, such as loans, inheritances or other payments.
University and housing School may lead to university,
with its accompanying student debts. Children may be dependent on their parents for longer and not leave the nest as quickly as one might hope. Rising rents mean the aspiration to get on the property ladder may only be achieved after age 30 and will require some financial assistance.
If you are paying for care, the average weekly cost of a residential care home in the UK is £1,160, while average fees at a nursing home cost £1,410 per week[3]. This means residential care for a whole year (52 weeks) costs an average of £60,320, and nursing home care costs an average of £73,320 annually. Fees will vary depending on the area you live in and the home you
choose.
The families of those in care homes are unlikely to pay the entire bill but may top this up to ensure a better quality of life, such as an ensuite room, visits from the hairdresser, entertainment and day trips. As parents may live some distance away from other family members, time and practicalities may create the need to move closer, leading to inevitable upheaval and losing a friendship network.
Our elderly relatives play a crucial role in the upcoming shift in wealth. They’ll be vital in the wealth transfer over the next 10-15 years. The ‘sandwich generation’ – those caring for their children and ageing parents – are set to inherit significant assets. Figures from HM Revenue and Customs (HMRC) show a recordbreaking increase in Inheritance Tax (IHT) receipts, reaching £7.5 billion from March 2023 to April 2024. This is a jump of £400 million compared to the previous year and continues a trend that’s been rising for the past two decades.
With an IHT rate of 40%, nearly £19 billion in assets, beyond
various exemptions and reliefs, were taxed[4]. The taxman might become the largest single beneficiary if multiple family members inherit. Given the current higher interest rates, the compounding effect of reinvested income can grow wealth even further. Therefore, financial planning is about reducing the size of estates and preventing them from growing too large.
Using surplus pension and investment income, for example, to help towards grandchildren’s school fees both invests in their future and reduces the growth rate of the estate. The notion of IHT planning may conjure images of esoteric and inaccessible investment schemes, but straightforward gifting can be just as effective.
In addition to utilising various allowances and reliefs available, lump-sum gifts to an individual, known as Potentially Exempt Transfers, will not be subject to IHT if you live for seven years after making the gift. If you die before then, these gifts are initially set against the available nil rate bands, so they may still
be tax-free. Lump-sum gifts could be a valuable way to help a grandchild working to be a firsttime buyer get a decent deposit together. The average gift for a house deposit is £25,000.
However, for many – possibly the majority – the fear of running out of income and capital mentally eclipses the huge benefits of helping younger generations now, providing the enjoyment of seeing the positive impact on their lives. Creating a financial plan will provide the knowledge and reassurance of knowing you are financially secure, whatever the future may hold. This, in turn, will enable you to consider gifting from income and capital.
An inbuilt reluctance to discuss money matters with family members can lead to poorer long-term financial decisions and more money lost to the taxman. A lack of dialogue will also mean less influence over the choices made for you if you lose capacity – simply because your children might not know what you want to happen. Financial openness across generations is the starting point.
Children may be dependent on their parents for longer and not leave the nest as quickly Do you want to discuss your financial planning requirements?
Please get in touch with us if you require further information or need assistance with your financial planning requirements. We are here to help you secure your and your loved ones’ financial future
Inheriting property from a late family member often carries a complex mix of emotions and financial considerations. While it may serve as a tangible connection to cherished memories and lost loved ones, it also introduces a series of responsibilities and decisions that can weigh heavily on the inheritor. The bittersweet nature of such inheritance lies in the juxtaposition of grieving for a lost relative while simultaneously navigating the legalities and logistics of property ownership.
planning and advice. Furthermore, the emotional toll of dealing with an inheritance amidst mourning can complicate these decisions, making it a deeply personal experience that varies widely among individuals.
path forward involves the intricate process of applying for a Grant of Probate, which requires careful consideration and legal guidance.
with legal expectations.
This situation often requires managing estate taxes, maintenance costs, and, potentially, the decision to keep, sell, or rent the property. These financial implications can significantly impact one’s personal finances and require careful
Clear delineation of ownership is straightforward if the deceased’s intentions are documented within a Will; however, absent such documentation, heirs could find themselves having to navigate additional procedures to affirm rightful ownership.
Seeking the expertise of a legal professional well-versed in estate matters is crucial in avoiding potential hurdles in establishing ownership. For those inheriting property alongside others, the
For those appointed as executors within a Will, the responsibility of managing the deceased’s estate—including assets, financials, and property— becomes theirs. In England and Wales, this initiates the probate procedure, termed a Grant of Confirmation in Scotland, which entails a formal application to assert control over the estate.
In situations where a Will is absent, the role of Administrator falls to the nearest kin, invoking a similar procedural approach to that required for obtaining a Grant of Probate. This ensures the estate is managed in accordance
The estate’s complexity influences the duration of the probate process and whether a Will was left behind. Part of this process involves a comprehensive valuation of the estate, encapsulating all assets held at the time of death. It may also include evaluating gifts made in the latter years of the individual’s life.
Encountering a property with an existing mortgage introduces a scenario where the inheritor is liable for continuing mortgage payments post-inheritance. Should the deceased have had a life insurance policy, it might cover the outstanding mortgage; otherwise, the inheritor is
of probate, one can either sell the property to settle the remaining mortgage or undertake a new mortgage agreement on the inherited property.
After the Probate process has been finalised, determining the right type of insurance for the inherited property is crucial and largely depends on your plans. Securing standard home insurance is necessary if you’re considering moving into the property temporarily before its eventual sale.
However, second home insurance is required if you already own another residence and wish to maintain both. Alternatively, leasing the property requires landlord insurance to protect you adequately.
Inheritance Tax (IHT) does not apply if you are the deceased’s spouse or registered civil partner. Additionally, estates valued under the Nil-Rate Band (NRB) of £325,000 for the tax year 2024/25 are exempt from IHT, with this threshold potentially increasing to £500,000 where a property is bequeathed to children or grandchildren. This is due to the Residence Nil-Rate Band (RNRB) introduced in 2017, which allows an additional £175,000 allowance for estates, including a property. However, it’s essential to know
decreasing by £1 for every £2 above the threshold. Given the complexity surrounding IHT, professional guidance is often necessary to understand potential tax liabilities, which could reach up to 40% of the estate’s value.
The UK’s tax regulations offer various deductions and exemptions that can significantly lower or altogether remove the Capital Gains Tax (CGT) on properties received as inheritance. CGT considerations apply if the property’s value has increased since the initial Probate valuation. CGT can be mitigated by deducting expenses related to the sale and any significant improvements made to the property.
Annual Exemption: The system grants an annual CGT exemption. For the 2024/2025 fiscal year, individuals are entitled to a £3,000 exemption. The first £3,000 of capital gains within the current tax year are CGT-free.
Spouse Exemption: Beneficiaries who opt to allocate their portion of an inherited property to their spouse or registered civil partner before its sale will see such transfers exempt from CGT. This strategy allows for the utilisation of additional annual CGT exemptions.
Principal Private Residence Relief: Individuals can qualify for this relief when they sell a
potentially reduces or negates CGT for the duration the deceased owned the property and when it was the beneficiary’s primary residence.
Charity Exemption: Properties sold by or on behalf of charities are not subject to CGT. However, selling an asset to a charity does not exempt you from CGT on any profit made. Assigning property interests to a charity before the sale can avoid CGT for the estate.
Allowable Losses: Reporting losses from a chargeable asset to HM Revenue & Customs can decrease your total taxable gains for the year. These reported losses are subtracted from your yearly gains; if total taxable gains exceed the exemption threshold, you can apply losses from previous years. Should these adjustments bring your gains below the exemption amount, the leftover losses can be carried forward into future tax years.
With any IHT settled and Probate concluded, the next step involves registering the new ownership with the Land Registry, mindful that IHT payments are due by the end of the sixth month following the death to avoid interest charges from HM Revenue & Customs. When selling the property, the method chosen — a traditional private treaty sale or an auction — depends on your circumstances and objectives for a swift transaction.
Inheritance Tax (IHT) does not apply if you are the deceased’s spouse or registered civil partner.
Ready to turn the mortgage maze into a straightforward journey?
If you’re navigating the complexities of inheriting a property and need help with how to proceed with sales, mortgages, or the intricacies of legal obligations, our team is here to assist.
Having a conversation with children about money early on helps them to build financial confidence and learn foundational principles that will be useful for years to come. It also allows parents to share their financial values and wishes. We look at some practical ways this can be done at different stages of childhood.
Some parents dread talking to their children about money. Others simply struggle to know how or at what age to begin. This is understandable: money is both a complex and emotive topic. But beginning the conversation early on helps children to form the foundations for a healthy relationship with money and enables them to learn important financial principles that will help them to successfully steward
future wealth.
Having open conversations from a child’s early years allows parents to share their values and encourages children to formulate their own. It’s not all about numbers. A common misconception is that talking to children about money involves disclosing amounts or elements of the family’s financial life and position that may not be appropriate to share with children or young adults. Instead, the conversation should centre around communicating values and principles for managing money effectively.
The goal is to share with them what’s important to you about money and to equip them with the
skills and confidence to manage their own wealth effectively. Identify any pitfalls that you wish your child to avoid. This could be anything from entitlement to lack of confidence. Think carefully about this and find ways to discuss your views with your child.
To reinforce the concepts discussed, consider incorporating practical activities into your routine. For example, you could start with simple budgeting exercises, setting savings goals for specific items or even discussing the basics of investing in a childfriendly manner. These hands-on experiences can make abstract concepts more tangible and relatable for children.
Remember, the aim is for your child to feel comfortable and knowledgeable about financial matters. By encouraging an open dialogue, you are setting a foundation for their future financial wellbeing. Creating an environment where money can be discussed openly ensures that children feel confident seeking advice and making informed decisions about their finances.
Label three jam jars: ‘Spend’, ‘Save’ and ‘Give’. Give your child a regular amount of pocket money and divide it between the three jars. As they age, grant them greater autonomy in allocating their funds to each jar. Allow your children to make their own spending decisions for the ‘Spend’ jar. Resist the urge to give them
more money once they have spent all their funds until they have replenished the jar.
The ‘Save’ jar is ideal for storing tooth fairy money or small monetary gifts from friends and family. As your child matures, introduce the concept of interest rates by occasionally adding a small amount to the pot. You can further incentivise saving by matching their contributions.
For the ‘Give’ jar, involve your child in choosing a charity or beneficiary. Create memorable experiences around their gift, such as volunteering or visiting the charity to see the impact. This often sparks joy and leaves a lasting impression on children.
From an early age, involve children in shopping decisions. For instance, ask them to choose between a branded product and a white-label good, show them the price difference and prompt them to choose.
As they get older, give them money to allocate to a specific category, like fruit. This grants them autonomy over small financial decisions for the family, fostering a sense of pride in their contribution.
Introducing the concept of ‘needs’ versus ‘wants’ is a powerful way to help children decide how to spend their money. Start by having your child list their ‘needs’ and ‘wants’ on a back-toschool shopping list, then discuss how to allocate the budget.
Working for ‘wants’ sets goals that children can feel proud of achieving. Ask your child to draw a picture or write down their ‘want’, then give them specific jobs to earn money towards their
Having a conversation with children about money early on helps them to build financial confidence
goal. Celebrate their achievement when they reach it!
Give your child a budget for a family event, such as a birthday dinner. Allow them complete autonomy in allocating the budget, including designing the menu, buying ingredients and deciding whether to have decorations and cake. This activity is a fun way for children to learn about budgeting and making spending decisions on behalf of the family.
In our increasingly digital world, visiting a bank can still be a memorable experience for children. It provides an opportunity to understand the concept of choosing a place to store and manage money. Consider opening a minor or joint account, which will give you full visibility over transactions. Select a bank with an intuitive, easy-to-use app to explore with your child.
Help your child deposit gifts and pocket money, allowing them to watch their balance grow over time. Review monthly statements together, discussing interest rates and payments. This hands-on approach can make financial management more tangible and engaging for young minds.
Engage your child in the world of investments by organising a family stock-picking competition. Each family member selects a company they are familiar with – perhaps one that produces a favourite food or toy – and track its performance over several months. Teach your child how to look up share prices using a stocks app on an iPad or similar device.
You don’t need actually to purchase the stocks. Instead, offer
to pay dividends or gains made during this period or award a prize to the winning stock picker. This activity introduces essential investment concepts in a fun and accessible manner.
Assist your older child in building a budget for school or university. Show them how to anticipate income or allowance, plan for spending needs, and distinguish between fixed and discretionary costs. Transitioning to a less frequent allowance helps them practise budgeting independently. Encourage them to allocate funds for an emergency fund to cover unexpected expenses. This preparation builds a solid foundation for financial independence and responsible money management.
Involving a young adult in the family’s charitable giving offers a valuable learning experience about investments and family values without revealing the entire financial picture. If there’s a charitable structure or account within the family, involve your child in deciding which charities to support and how much to donate.
Invite them to attend investment meetings or review investment reports, which will provide insight into asset management. This exposure will foster a deeper understanding of financial stewardship and philanthropy, preparing them for future responsibilities.
Empower your child to build their investment portfolio by giving them money or granting control over their Junior ISA (JISA) at age 16 if applicable. Establish ground rules for
accessing capital and income to guide their investment decisions. This practical experience equips them with essential skills for managing personal investments and fostering long-term financial competence and confidence.
Mary Henderson Financial Planner
Ready to discuss financial matters for the next generation?
If you require further information or need assistance in initiating these important conversations, please do not hesitate to contact us. We are here to support you in fostering a financially literate and confident next generation. To discuss how we can help you, please contact us.
Age is just a number, or so the saying goes, but it does matter if you’re applying for a mortgage. If you’re aged 50 and over and want a mortgage or remortgage into retirement, you may struggle to get the loan you desire.
Getting a mortgage at any age may not be possible because lenders often impose upper-age limits on each mortgage. It’s not unusual to see an upper age limit for new mortgages of 65 to 70 or age limits for repaying a mortgage between the ages of 70 and 85.
Banks and building societies are likely reluctant to approve loans extending beyond retirement age. This is primarily because that’s when your income is likely to drop. Even though many borrowers will continue to earn beyond retirement age and be able to support a mortgage, either through working longer or using income from savings and investments,
challenges remain.
If you’re aged 50 and planning to retire at 60, you may struggle to get a mortgage. And if you do secure a mortgage, you may have to repay it before your 70th birthday. This means a term of 20 years instead of the typical 25. A shorter term results in more expensive monthly repayments at a time when your income may fall as you enter retirement.
Generally speaking, smaller banks and building societies are more likely to be amenable to older borrowers as they will often lend beyond the age of 75 on a case-by-case basis. Another option is a retirement interest-only mortgage. This type of home loan is aimed at older borrowers who may need help to get a mainstream mortgage due to age limits.
One of the best ways to increase your chances of getting a mortgage in your 50s is to have a clear plan
for repaying the loan. Knowing your budget and monthly outgoings will help you understand how much you can afford to borrow.
You should also check your credit report and look at improving your credit score before a mortgage application, as this will also increase your chances of approval. For mortgages for over-50s, you will need to prove you have adequate income to cover the repayments post-retirement, just as you would if you were working full-time.
Expect to show your bank statements and a statement confirming your pension payments or evidence that you are receiving a pension. Your lender will also examine your regular expenditure to assess an affordable borrowing amount.
As you near retirement, you
will need to provide a statement forecasting your income. When you are more than 10 years away from retirement, lenders may only want to see whether you contribute to a pension scheme.
If you’ve had different jobs over the years, check your records to ensure you have details of all the various pension schemes you may have contributed to. Proper documentation and proof of contributions can significantly impact your application’s success.
One
of
the
best ways to increase your chances of getting a mortgage
in
your
50s
is to have a clear plan for repaying the loan. Are you looking to obtain a mortgage later in life?
While obtaining a mortgage after age 50 presents unique challenges, it is not impossible. By understanding the specific requirements and preparing thoroughly, you can improve your chances of securing the loan you need. For further information or assistance, we’re here to help you with the complexities of obtaining a mortgage later in life.
In April 2024, the State Pension rose by 8.5% to £11,502.40 a year for post-2016 retirees. However, according to new research[1], one in seven (14%) retirees receive less money from the State Pension than expected. This highlights the need for more information about the payments people can expect to receive from the government later in life.
Over a fifth (22%) of retirees also said they entered retirement unaware of how much they’d receive from the State Pension, while a quarter (26%) didn’t know how to calculate their entitlement. One in ten (10%) retirees also said they didn’t realise that their National Insurance contributions determine the level of State Pension paid in retirement. Another 10% of retirees said it wasn’t easy to determine how much State Pension they’d receive in later life.
The research also shows there is a wide knowledge gap among those in the key pre-retirement age group[2]. Over a fifth (22%) of over-55s who are not yet retired do not know their State Pension age, and just three in ten (29%) of this age group know how much the State Pension is worth. Additionally, the research found that the understanding of the State Pension system is poor across all ages, with participants struggling to explain basic aspects of how the system works.
The study revealed that knowledge gaps have led to several misconceptions, the most prominent being that each person’s National Insurance contributions are kept in a personal pot to be accessed when they reach State Pension age when, in reality, it is funded on a pay-as-you-go system by current
taxpayers[3]. This was a strongly held belief that impacted people’s views about the fairness of the system.
The State Pension remains a hot topic. Under the triple lock, while the increase in pensioners’ payments in April is a welcome boost for millions, concerns about its sustainability for future generations have been raised.
It’s worrying that many UK adults lack knowledge about specific State Pension details, such as the value of their entitlements and when they qualify for payment. However, the State Pension is a significant part of most people’s retirement income, and it’s clear that greater prominence and more accessible information are needed so people feel confident and can plan for their financial future.
The State Pension is an amount paid to you every four weeks by the government once you reach State Pension age. However, not everyone can get the full State Pension, which might not be enough to live on alone. Therefore, it’s important to know what yours might be when you can claim it and how it will stack up with your other retirement savings.
The current full State Pension amount is £221.20 a week for the 2024/25 tax year, totalling £11,502.40 for the year, an increase of 8.5% from the previous tax year. Remember that the amount you’ll get depends on your National Insurance record and how many qualifying years you have. You’ll usually need at least ten qualifying years on your National Insurance record to get any State Pension. You’ll need 35 qualifying years to get the new full State Pension if you don’t have a National Insurance record before 6 April 2016. In some circumstances, it’s possible to top up your National Insurance record, and your State Pension forecast will highlight when this is an option.
What is pension credit eligibility?
If you’ve reached State Pension age and you’re on a low income, it’s worth checking if you’re eligible for pension credit. This tax year (2024/25), pension credit usually tops up your weekly income to £218.15 if you’re single or your joint weekly income to £332.95 if you have a partner. Arming yourself with accurate information about your State Pension is essential for effective retirement planning. Understanding how your National Insurance contributions affect your entitlement can help you make informed decisions about topping up your record or exploring additional retirement savings options.
Government resources such as the State Pension forecast are invaluable tools that can provide a clearer picture of what you might receive. Engaging with these resources early and regularly can prevent unwelcome surprises. Given the State Pension’s central role in retirement income for many, it is critical to ensure you have all the relevant details. This proactive approach not only aids in better financial management but also offers peace of mind as you approach retirement age.
When can I receive the State Pension?
UK adults can currently receive the State Pension from age 66, but this is set to rise to 67 by 2028 and again to 68 between 2037 and 2039. You can use the government’s calculator to check when you’ll reach State Pension age.
If you don’t want to take your State Pension immediately, you can also choose to defer it. This means you could get larger payments when you do start claiming it, which might suit you depending on your circumstances.
How do I claim my State Pension?
You won’t get your new State Pension automatically – you must claim it. You should get a letter no later than two months before you reach State Pension age outlining what you need to
do. If you have not received an invitation letter but are within three months of reaching your State Pension age, you can still make a claim, and the quickest way to do this is online.
After you’ve made a claim, you will receive a letter about your payments. These are usually paid every four weeks into an account of your choice, and you are paid in arrears. The payment day depends on your National Insurance number, although you might be paid earlier if your normal payment day falls on a bank holiday.
There’s a significant gap between what you receive from the State Pension and what you may need or want in retirement. The State Pension alone falls short of even a minimum standard of living in retirement, according to the Pensions and Lifetime Savings Association (PLSA). Because it only starts in your late 60s, it won’t help to support you if you want to retire earlier. It should, therefore, only form part of your overall retirement plan, and so it’s important to fully understand how much you might need to save in your personal or workplace pension plan to be able to afford the retirement you want.
The State Pension alone falls short of even a minimum standard of living in retirement, according to the Pensions and Lifetime Savings Association (PLSA).
Rikki McNeill Financial Planner
Source data:
[1] Boxclever conducted research among 6,350 UK adults for Standard Life. Fieldwork was conducted 26 July – 9 August 2023. Data was weighted post-fieldwork to ensure the data remained nationally representative on key demographics.
[2] Phoenix Group research, January 2024. Survey conducted by Opinium among 2,000 UK adults.
[3] Phoenix Insights (2023) An intergenerational contract: Policy Recommendations for the Future of the State Pension.
This article does not constitute tax, legal or financial advice and should not be relied upon as such. A pension is a long-term investment not normally accessible until age 55 (57 from April 2028 unless the plan has a protected pension age). The value of your investments (and any income from them) can go down as well as up, which would
you’re at? Please contact us for professional guidance if you require further information or assistance with your State Pension.
With countless books claiming to enhance personal growth, selecting the most impactful ones can be daunting. In this article, we delve into five essential books that offer profound insights for boosting mental and emotional health and helping you achieve a harmonious and rewarding life.
These five books offer valuable insights and practical advice to transform your approach to wellbeing. Whether you are seeking to cultivate mindfulness, happiness, or personal growth, these titles provide a roadmap to a healthier and more fulfilling life
1 2 3
The Power Of Now by Eckhart Tolle
Eckhart Tolle’s “The Power of Now” is a seminal work that has transformed the lives of millions. Through compelling teachings, Tolle encourages readers to live in the present moment, breaking free from the shackles of past regrets and future anxieties. This journey into mindfulness promises profound insights that are both practical and spiritual.
Tolle’s guidance is accessible and transformative, promoting a deep sense of peace and clarity. As you embrace the present, you’ll uncover the true essence of wellbeing, with each chapter providing tools to cultivate a life of serenity and purpose.
Mindfulness: A Practical Guide To Finding Peace In A Frantic World by Mark Williams and Danny Penman
In “Mindfulness: A Practical Guide to Finding Peace in a Frantic World,” Mark Williams and Danny Penman offer a step-bystep programme to combat stress and anxiety. This book is rooted in scientific research and presents mindfulness as an effective method for improving mental health.
The authors provide an easyto-follow eight-week plan for integrating mindfulness into daily routines. Through guided meditations and practical exercises, readers learn how to reduce stress and enhance their overall well-being.
The Happiness Project by Gretchen Rubin
Gretchen Rubin’s “The Happiness Project” is a captivating exploration of personal transformation. Rubin begins a year-long quest to boost her happiness, sharing her journey with wit and wisdom. Her honest reflections and practical advice make this book an engaging read. Rubin’s insights are relatable and actionable, encouraging readers to reflect on their lives and make meaningful changes.
Focusing on small, manageable goals, “The Happiness Project” empowers you to cultivate happiness in everyday life.
by Dr. Nicole LePera
Dr. Nicole LePera’s “How to Do the Work” offers a holistic approach to healing and self-discovery. Known as “The Holistic Psychologist,” Dr. LePera provides a blend of psychology, mindfulness, and self-care practices to guide readers on their path to wellbeing.
This book is a comprehensive guide to understanding and overcoming limiting beliefs and patterns. Through practical tools and exercises, Dr. LePera encourages readers to take control of their mental and emotional health, fostering resilience and selfawareness.
“Atomic Habits” by James Clear delves into the power of small changes. Clear presents a compelling argument that tiny adjustments to your daily routine can lead to significant improvements in your wellbeing. His methods are grounded in psychology and neuroscience, offering evidence-based strategies for habit formation.
Clear’s approach is refreshingly straightforward, providing readers with clear steps to cultivate positive habits. Focusing on incremental change, “Atomic Habits” empowers you to achieve your goals and enhance your quality of life.
Discussing finances can evoke anxiety or discomfort, and this tension doesn’t ease when family members are involved. Nevertheless, some parents of adult children may want to be responsible for discussing their financial future— particularly retirement and estate planning. Doing so ensures their children can provide support or fulfil their wishes as needed.
Open conversations can provide financial planning opportunities and improve your loved ones’ future finances. The sooner you talk about money, the better your chances are of protecting your legacy and boosting your children’s financial security.
How can you make financial planning conversations go smoothly?
estate
Let’s begin with inheritance, which is a hugely emotive subject. While discussing who will inherit a portion of your estate after you have passed away might seem difficult, doing so could prevent future difficulties or disagreements. You can explain your plans and why you have made certain decisions.
This could also provide an opportunity to consider if your Will needs updating. For example, you might need to amend your Will to ensure your estate can
benefit from the residence nil rate band, which could reduce your estate’s Inheritance Tax (IHT) bill.
Although you’ll want to avoid giving away money that you might need in the future – towards care costs, for example – you might wish to consider passing on some wealth to future generations within your lifetime. Using pensions, Trusts and life assurance are just some ways you can do this. This can be complicated, but we can work with you to give you peace of mind that you’ve laid the firmest foundation for your family’s future.
It’s possible to gift taxefficiently during your lifetime using various allowances and exemptions. For instance, you can give away up to £3,000 per year free from IHT. Additionally, you can make small gifts of up to £250 per person per tax year. Further, tax-free gifts, such as Potentially Exempt Transfers (PETs), become exempt from IHT if you live for at least a further seven years after making the gift.
Dealing with a deterioration in mental capacity can be particularly tough on your family. If you can no longer make decisions for yourself, you’ll want to ensure someone you trust is legally in this position. You can put in place a Power of Attorney, a legal document enabling you
to name one or more people to look after your affairs if you lose capacity.
Without this document, an application must be made to the Court of Protection (the Sheriff Court in Scotland), which can be a complex, costly and lengthy process for your loved ones.
Discuss where you’ll safely leave basic details of your bank accounts, savings, investments and utility providers. Compiling a list of this information is time well spent and could be invaluable to your family if you lose capacity or pass away. Talking to your family about inheritance might seem difficult, but we can help start the conversation and guide you through what may be an emotional process.
Building a succession plan that suits your needs ensures you have laid the firm foundations for your family’s future. It’s crucial to regularly review and update this plan to adapt to any changes in your personal circumstances or legislation.
The planning process leads to understanding each family member’s motivations and personal drivers. This will enable you to assess the direction of your vision and the options available to your family to create a plan for your family’s future.
Are you ready to manage your family’s financial future?
Please contact us for more comprehensive advice on managing your family’s financial future, including estate planning, lifetime gifting and setting up a Power of Attorney. We’ll assist you in navigating these challenging discussions and ensuring your financial legacy is secure.
Adrian Tomaino Regional Sales Manager
Talking to your family about inheritance might seem difficult, but we can help start the conversation and guide you through what may be an emotional process.
Nobody wants to consider what would happen if they became too ill to support their family financially. Financial protection is essential to creating peace of mind for your loved ones, but understanding what cover you may need can be confusing.
Have you considered the implications financially if someone in your family were unable to earn money, became ill or were to die prematurely? It’s not something we like to think about, but if you have left regular employment and are now either retired or have become self-employed, then any previous protection you received from an employer becomes your responsibility.
Think about the regular items you and your family spend money on – holidays, socialising, club memberships, family events. Paying for these could become more difficult without the right protection in place.
Covering essential costs first
Start by covering your debts and other essential costs, such as mortgage payments, council tax, utilities and food costs. You can then consider additional protection for other priorities.
The main types of protection
include:
Healthcare Insurance
Most UK residents are entitled to free healthcare from the NHS. However, some individuals also opt for private medical insurance. Also known as ‘PMI,’ it pays some or all of your medical bills if you’re treated privately. Basic policies typically cover the costs of most inpatient treatments, and more comprehensive policies extend their coverage to outpatient treatments.
Critical illness cover pays a tax-free lump sum or regular payments upon diagnosing a specified critical illness. A lump sum could help you to take time off, modify the house, pay for medical treatment, or give you time to recuperate or adjust to your new condition. You can also build in children’s cover – a lump sum payout if they are diagnosed with a critical illness could allow you to take unpaid leave to care for them.
Income protection pays out a regular income to replace income you’ve lost through being unable to work due to sickness or disability. You can choose to take cover for a set period of time –for example, one to three years or until age 65 – and delay the start of payments for a number of months, both of which can help
keep premiums down. You can also choose your level of cover –usually somewhere between half and two-thirds of your income.
Life Insurance
Life insurance pays out on death and can provide a lump sum or regular monthly payments over a specified timeframe – say, until children reach a certain age. The payments can help pay off or cover a mortgage, pay for school fees and cover lost income.
In the event of your death, the size of your estate could determine whether your family or other beneficiaries become liable for Inheritance Tax. This tax can place a significant financial burden on your loved ones if insufficient funds are readily available or if adequate plans are not in place.
Without proper planning, your family may be forced to sell valuable assets, such as the family home, to cover the tax bill. Therefore, it is crucial to consider all available options to protect your estate and ensure that your beneficiaries receive their intended inheritance.
One effective strategy is to set up a Trust for your dependants. A Trust offers several advantages
that can alleviate the financial strain on your family. It pays out quickly upon death, eliminating the need to wait for probate to access the funds.
A Trust also falls outside of your estate, meaning there is no Inheritance Tax liability as long as it has been in place for seven years before your death, assuming the 14-year rule isn’t invoked. Additionally, some Trusts allow you to decide exactly how much money goes where and when, giving you greater control over the distribution of your assets.
Another critical component of Inheritance Tax (IHT) planning is considering pensions. Pensions generally fall outside your estate, offering a significant advantage in reducing potential IHT liabilities.
However, the rules governing pensions can be complex, necessitating professional advice. It is essential to inform the pension scheme of the right beneficiaries and keep your nomination forms up to date to ensure your family benefits as intended after your death. It is also important to note that a nomination form is not legally binding on the trustees. The pension trustees have discretion in order to ensure the benefits
are outside the estate of the individual for IHT purposes.
Properly managed pensions can offer substantial tax advantages and financial security for your loved ones. Regularly reviewing your pension arrangements is vital to maintaining the effectiveness of your inheritance planning strategy.
Reviewing and updating your financial plans regularly is crucial to protect your inheritance effectively. Life changes such as marriages and births, or changes in tax laws, can significantly impact your current strategy.
Staying proactive ensures that your estate remains optimally managed and protected.
Inheritance planning is a complex field requiring careful consideration and expertise. Seeking professional advice can help you navigate the intricacies of Trusts, pensions and tax implications, ensuring your legacy is preserved for your loved ones.
Understanding and choosing the right financial protection ensures that your family remains financially secure despite unforeseen circumstances. Assess your needs and make informed decisions to safeguard your loved ones’ future. If you require further information to make informed decisions about financial protection, please contact us for expert guidance.
Have you considered the implications financially if someone in your family were unable to earn money, became ill or were to die prematurely?
Tim Robinson Financial Planner
Maintaining a healthy lifestyle begins with the foods we choose to consume. Eating a balanced diet rich in nutrients fuels our bodies and supports overall well-being. With numerous options, selecting the right foods is essential for sustaining energy and promoting longevity. This article delves into a selection of wholesome foods, each offering unique benefits to keep you healthy.
Leafy greens like spinach, kale, and Swiss chard are nutritional powerhouses packed with vitamins, minerals, and antioxidants. Rich in vitamins A, C, and K, these greens support immune function, bone health, and vision. Additionally, they are high in dietary fibre, which aids digestion and helps maintain a healthy weight.
Incorporating leafy greens into your meals is simple and versatile. Add them to salads, smoothies, or stir-fries to boost your nutrient intake effortlessly. Their lowcalorie content makes them an ideal choice for those looking to manage their weight while still providing essential nutrients.
Berries, including blueberries, strawberries, and raspberries, are celebrated for their high antioxidant content. These antioxidants combat free radicals
in the body, reducing oxidative stress and lowering the risk of chronic diseases such as heart disease and cancer. Berries are also an excellent vitamin C, fibre, and manganese source.
These tasty fruits can be enjoyed fresh or frozen, making them a convenient addition to any diet. Sprinkle them over breakfast cereals, blend them into smoothies, or enjoy them as a healthy snack. Their natural sweetness is a delightful way to satisfy sugar cravings without consuming processed sweets.
Whole grains like quinoa, brown rice, and oats provide essential carbohydrates for energy, alongside fibre, B vitamins, and minerals such as magnesium and iron. Unlike refined grains, whole grains retain all parts of the grain, ensuring a greater nutrient profile that supports digestive health and reduces heart disease risk.
Incorporating whole grains into your meals provides a sustained energy release, keeping you fuller for longer. Use them as a base for salads, a side dish, or a hearty breakfast option. Their versatility and satisfying taste make them a staple in any balanced diet.
Healthy fats in foods like avocados, nuts, and olive oil are crucial for brain health, hormone balance, and reducing
inflammation. They are rich in monounsaturated and polyunsaturated fats, which help lower harmful cholesterol levels and protect against cardiovascular disease.
Adding healthy fats to your diet can be as simple as drizzling olive oil over salads, snacking on a handful of nuts, or enjoying avocado on whole-grain toast. These fats enhance the flavour of your meals and provide satiety, helping to control appetite and maintain a healthy weight.
Lean proteins, such as chicken, fish, and legumes, are vital for muscle repair, immune function, and healthy metabolism. They offer essential amino acids and are generally lower in saturated fats, making them heart-healthy.
Include a variety of lean proteins in your diet to ensure a broad spectrum of nutrients. Grill, bake or steam these proteins to retain their health benefits and avoid added fats. Pair them with vegetables and whole grains for a balanced and nutritious meal.
Adopting a diet rich in these nutritious foods can significantly impact your overall health and well-being. By embracing a diverse and balanced diet, you nourish your body and lay the foundation for a longer, healthier life.
Healthy fats in foods like avocados, nuts, and olive oil are crucial for brain health, hormone balance, and reducing inflammation.