Budget 2015: Pension and Annuity Changes
Pension Freedoms Confirmed
Pension freedom and choice will go ahead as expected on 6 April 2015. The new pension freedoms will allow pensions to be drawn using Flexi-Access Drawdown without any maximum limit each year.
Budget 2015: Tax and Personal Allowance changes
The personal allowance and higher rate threshold for 2015/16 will remain at £10,600 and £42,385 respectively, as announced in December 2014.
Budget 2015: IHT threshold unchanged, Deeds of Variation at Risk
Inheritance tax (IHT) threshold unchanged at £325,000. Many commentators had expected an increase in the Nil Rate Band, but this speculation was unfounded.
Budget 2015: EIS and VCT Rules Changed
VCTs and EIS will no longer be able to invest in a company that is more than 12 years old, except where the investment will lead to a substantial change in the company’s activity, or where where the total investment represents more than 50 per cent of turnover averaged over the preceding five years.
Budget 2015: Flexible ISAs
New fully Flexible ISAs will allow savers from Autumn 2015 to withdraw from their Cash ISA and reinvest into it in the same year without any loss of tax benefits.