The new Chancellor of the Exchequer, Kwasi Kwarteng, introduced several tax cuts in his mini-budget Fiscal Statement, dubbed “plan for growth”. This statement follows through on Liz Truss’s leadership pledge of reversing National Insurance and dividend tax increases and addressing the rising cost of living causing a significant impact across the country.
Mini Budget 2022 – a summary
What does the mini-budget mean for your savings and pension?
Due to the abolition of the additional tax rate of 45%, all taxable income over £37,700 will be taxed at 40% (32.5% for dividends). Furthermore, due to the abolition of the additional rate tax band, the maximum level of tax relief on pensions will be at the higher rate of 40%, and despite the reduction of the basic rate income tax, personal pensions will still be able to claim 20% basic rate relief until April 2024.
Pension legislation has been the subject of huge changes in recent years, as such, saving for retirement remains a very complex area with varying rules and regulations. Our pension specialists can help you to make the most of your pensions and other assets and achieve your retirement goals.
By choosing Springfield Financial for retirement and pension planning advice you benefit from regular reviews where we will assess your current financial position, the continuing suitability of our recommendations to meet your ongoing income requirements and the performance of any underlying holdings. We will also plan for passing any remaining funds on to your chosen beneficiaries, tax efficiently, following your lifetime.
Keep on top of your finances with independent financial advice from Springfield Financial.
Wherever you fit into the financial planning cycle, it is important to review your position regularly and to receive high quality, ongoing independent advice from a trusted financial professional. Springfield Financial are an award-winning firm of Chartered Financial Planners with over 100 years of financial planning experience.
With regard to our retirement and pension planning services, two of our financial planners specialise in providing later life financial advice, with our managing director specialising in the protection of family wealth, so if you would like to learn how to make the most of the economic changes in the new Fiscal Statement, please don’t hesitate to get in touch. We provide face-to-face advice to individuals and businesses throughout Preston, the Ribble Valley, the Fylde Coast, the Lake District and beyond.
For further information or to arrange an initial no-obligation consultation, please call 01772 729 742.