April 2016 - Moore Stephens Financial Services

Lifetime ISA vs your workplace pension

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In almost all circumstances, your workplace pension, which includes employer pension contributions will offer better value than a Lifetime ISA (LISA). This may be a bold statement to make, but the maths stack up. The LISA allows you to contribute up to £4,000 per annum from April 2017. On top of your £4,000, the Government will add a 25% bonus, thus meaning the maximum annual amount which could be saved…

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Capital gains tax – 2016/17 tax rates and the under-used annual allowance

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Capital gains tax applies to the sale of most investments, but different rates apply depending on what type of asset the gain arose from. Many people don’t realise that each individual is automatically entitled to a capital gains annual allowance. In the 2016/17 tax year, each person is able to incur capital gains of £11,100 before any tax becomes due. George Osborne announced in his March 2016 Budget that once…

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Tax Evasion & Tax Avoidance; What is the difference?

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In simple terms, tax evasion is illegal whilst tax avoidance is legitimate. Tax and evading or avoiding it has been very much in the news of late, but there seems to be a great deal of confusion about the difference between evasion and avoidance with many people incorrectly assuming that they are one and the same thing. If you are resident in the UK, deliberately trying to evade a tax…

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The Cameron Files

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Without wishing to become political, the Cameron inquisition does raise important points for future financial planning. Without entering the debate over offshore funds, the issue over the gift from his Mother is of relevance to many people. Mr Cameron is the Prime Minister of the United Kingdom and like many, not all, but many before him, he has emanated from a fortunate background. It seems incredulous then that the outrage…

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What is the Lifetime Allowance value trap?

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The Lifetime Allowance is the total value of pension savings which you are able to accrue throughout your lifetime before incurring a tax charge. From 6th April 2016, the Lifetime Allowance will reduce to £1 million. Over the past 10 years, the Lifetime Allowance has fallen from a high of £1.8 million to the present level. Consecutive Governments have chipped away at the Lifetime Allowance as a way of taxing…

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