As many pensions and tax efficient investments experts nervously awaited the Chancellor’s Budget, here’s a summary showing how the changes could affect you.
Self-Styled Pension Expert Jeremy Clarkson Shares His Views On Pensions Below
A Summary Of The Changes To Pensions And Tax Efficient Investments
In recent weeks, the pensions industry and the tax efficient investments industry were both concerned about detrimental changes that could be announced in the Chancellor’s 2017 Budget. Here’s a round-up of what’s new.
What Changed In Pensions?
It’s surprised many, but absolutely nothing changed.
What’s more, not even a consultation on any sort of pension reform was announced.
It’s left the pensions industry somewhat perplexed and undecided as to whether this is good or bad news. Whilst many believed this was a missed opportunity, just as many were relieved and even pleased to see no changes, given the financial uncertainties surrounding the Brexit talks.
What Changed In Tax Efficient Investments?
The chancellor outlined various measures to support research and development and technological innovation.
The only change was a surprise doubling of the EIS investment limit for ‘knowledge-intensive’ companies.
It’ll mean the amount you can invest goes up from £1 million to £2 million, providing any amount over £1 million is invested in one or more knowledge-intensive companies. Your full investment could receive a potential 30 per cent tax relief of £600,000.
While the Chancellor was vocal on EIS investments, he was surprisingly quiet on VCTs, which was left to a paper published online.
Here’s a useful article with a lot more detail about the Tax Efficient Investments changes.
A Lighter Hearted Look At Pensions
Prior to the Budget, Jeremy Clarkson made a comment about driverless cars, saying:
I drove a car the other day which has a claim of autonomous capability and twice in the space of 50 miles on the M4 it made a mistake, a huge mistake, which could have resulted in death.
In response to this, as the Chancellor announced Government support for autonomous vehicles, he said:
...not the first time you’ve been snubbed by Hammond and May.
In a bombshell exposé, Clarkson is, in fact, a self-styled pension expert, as you can see in this video.
Please Share This
If you’ve found this page of interest, please would you kindly send a link to it to your friends and colleagues using the buttons below. You’ll be helping us out, and they might like it too. Thanks, it's much appreciated.
AJ Bell Is Often The Best Value SIPP For Stockmarket Assets
Over time, charges can wipe out a huge part of your fund. We like AJ Bell because there are no set-up costs. If you hold passive funds, which is our preference, or shares, investment trusts, EFTs, gilts or bonds, you pay one small fixed fee no matter how large your fund. And when you come to draw your benefits either as occasional drawdown or UFPLS payments, there's a small charge for the whole year no matter how many times you access your money (many SIPP and SSAS providers charge more than this for each payment). However, you should always compare charges in detail, because AJ Bell could be more expensive than other providers, depending on the type of stockmarket assets you hold.
Get Valuable SIPP And SSAS Insights Emailed Directly To Your Inbox Every Monday
As SIPPclub neither advises on, nor arranges, nor recommends specific investments or strategies, we're unable to say whether a SIPP or SSAS or any investment within it is right for you. Ultimately, it’s your money and your decision, and you should only proceed once you're satisfied you've undertaken sufficient due diligence. If you need advice, you should speak to your trusted adviser, or you could find a local adviser from Unbiased.co.uk. Alternatively, we'd be pleased to introduce to a suitably qualified independent financial adviser.
Please read our full Terms which includes criteria for SIPPclub membership.