by
Patrick Goddard, Independent Financial Adviser
By
and large, it was the pre-election Budget that everyone expected; and it
provided at least something for most people to smile about.
Overall
there was plenty of good news for our clients at every stage of their financial
journey – along with some announcements that mean certain clients need to plan
or take action soon.
Pensioners with annuities
For those who have already retired, the biggest headline was annuities. From 2016 it is proposed that pensioners will be able to trade in their existing annuities for cash, if their provider permits it. The cash can be taken as a taxable lump sum (with the 55% tax charge abolished and tax applied at the marginal rate); or it can be used to provide a flexible annuity; or invested to provide a flexible retirement income.
