Now that year end planning has been completed the Finance Bill sets the backdrop for the new tax year, we have picked out the main points and summarised the areas that will influence our discussions with clients:
- Pension Drawdown; a triple boost for drawdown users as income limits are returned to 120%
- Pension Lifetime Allowance; a cut to 1.25 million confirmed for 2014 new protection options create a funding window
- Pension Annual Allowance; reduction to 40,000 confirmed for 2014 still opportunities for carry forward at 50,000
- Maximum Investment Plans (MIPs); 3,600 contribution cap confirmed, there are alternatives available
- Bonds; changes to tax relief for periods spent abroad will create winners and losers
- Residency; new statutory residency test gives more certainty over tax status
- Tax Allowances; use them or lose them becoming even more important
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