mowatt financial Planning

mowatt financial planning
Mowatt Financial Planning: May 2010

Wednesday, 19 May 2010

What will the coalition mean?

The Conservative/Liberal coalition are likely to change a few things that will affect our finances. The emergency budget is planned for the 22nd June so nothing definite until then. Some of the anticipated changes are:

Personal allowances
- increase from 2011 focussed on lower earners

National Insurance Contributions
- the proposed (under Labour) employee contribution increase from 2011 to go ahead but employer contribution increase will not

Increase in Capital Gains Tax to 40%

End to compulsory annuity purchase with pension fund at age 75 - although whether it is moved to 80 or this will apply only after a minimum income has been secured is unknown

Child Trust Funds/Child Tax Credits
Reduction in the number of families who will qualify

Obviously we will know more detail come the 22nd of June. The need for action now is limited but if a CGT liability is going to be unavoidable, it could make sense to sort this now to avoid a potentially higher tax.

One thing is certain - this emergency budget is likely to be a lot more interesting than the last Labour budget.

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