Karen Barrett, Chief Executive of Unbiased.co.uk, comments on the outcome of pensions, VAT, National Insurance and IHT in the pre-Budget report
Pensions
“It was announced in the Pre-Budget Report 2009 that the government is to continue to restrict higher rate tax relief on pension contributions for those earning more than £150,000 but the report announced this amount includes employers’ pension contributions. Those with incomes below £130,000 before the inclusion of employer pension contributions will not have their pension tax relief restricted other than by the existing annual and lifetime allowances.
“Our research shows personal retirement planning is a primary concern for consumers, and over the last the last three years it has been the biggest driver for those seeking expert advice from an independent financial adviser. Last month alone, over a third (37%)* of people searching for a local IFA on Unbiased.co.uk were looking for help with their personal retirement planning and we expect this demand to continue following this announcement.”
VAT
“With VAT going back up to 17.5% on 1st January 2010, it is even more important for consumers to ensure they are being as tax efficient as possible in other areas. With over half (53%)** of people thinking that tax has already gone up in general over the past year, and almost two thirds of the population (60%)** already stating their ‘tax burden’ is unfair or very unfair, this increase to VAT is only set to further increase these views. With 81%** of the population stating they haven’t taken any steps in the last 12 months to reduce the amount of tax they pay personally or as a family, now is the time for them to take tax action and ensure they are being as tax efficient as possible and making the most of the tax breaks available.”
National Insurance
“The increase of national insurance contributions by 0.5% in April 2011 will put further strain on people’s personal finances. Although it will be good news for those earning less than £20,000 per year that their national insurance contributions will be unaffected, consumers earning more than this will need to make sure they plan their finances carefully to take the additional outgoings into account.”
Stamp Duty
“The Chancellor announced that the Stamp Duty holiday will come to an end on the 1st January 2010. This means only properties under £125,000 will be exempt from paying Stamp Duty instead of those under £175,000, which has been the limit for this year. Almost one in five (17%)** of people state stamp duty on home purchases is the tax they most resent having to pay, and this increase to the threshold will only cause further resentment.
IHT
“Even though the IHT threshold has been frozen at £325,000 as announced in the pre-Budget report, individuals still wasted £2.2billion*** during 2009 alone through failing to properly plan their inheritance. With IHT being charged at 40%, many can face a hefty tax bill on their loved ones estates after they die. Everyone should ensure they have a valid will in place to leave the best possible future for their loved ones after they die.”
“To make sense of the announcement and for independent financial advice on all of their personal finance matters, consumers can go to Unbiased.co.uk to find an Independent Financial Adviser near them, by carrying out a free and confidential search.”
ENDS
* Stats taken from Unbiased.co.uk Advice Driver’s report http://www.unbiased.co.uk/find-an-independent-financial-adviser/media/ifap-research/top-10-advice-needs/
**Research carried out for Unbiased.co.uk by Opinium Research between 11.02.09 and 13.02.09
*** TaxAction 2009 report produced for IFA Promotion by RAKM, based on a specially commissioned analysis of HMRC and a range of other official data sources.
For further information on Unbiased.co.uk, the professional advice website pleases contact:
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Karen Barrett, Chief Executive |
Anna Schirmer/Jennifer Comerford/ Anna Moulds |
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Unbiased.co.uk |
Lansons Communications |
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020 7833 3131 |
020 7294 3682 |
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Notes to Editors
Unbiased.co.uk, the professional advice website
Unbiased.co.uk is the free and confidential UK-wide search service matching consumers with the most appropriate local professional advisers for their needs. In 2008, Unbiased.co.uk fulfilled over half a million searches for local, professional advice.
The portal currently houses three professional advice searches: ‘find an IFA’, ‘find a mortgage adviser’, and ‘find a solicitor’, and is inviting accountants to sign up for its ‘find an accountant’ service. These searches enable consumers to find relevant professional advisers by postcode, area of specialism and payment method, amongst other options.
IFA Promotion, the organisation behind Unbiased.co.uk, is now in its 20th year, and was set up to promote the benefits of independent financial advice to the consumer.
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