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Christmas Newsletter

Merry Christmas & Happy New Year 

from all at Cave & Sons

London Stock Exchange Christmas & New Year Trading Hours:

Christmas Eve – 0800-1230

Christmas Day – CLOSED

Boxing Day – CLOSED

Monday 29th December – 0800-1630

Tuesday 30th December – 0800-1630

New Year’s Eve – 0800-1230

New Year’s Day – CLOSED

Friday 2nd January – 0800-1630

For further information, please visit the London Stock Exchange’s website at:

http://www.lseg.com/areas-expertise/our-markets/london-stock-exchange/equities-markets/trading-services/business-days.


Autumn Statement - 

George’s Christmas Present to us all!

The recent Autumn Statement (previously called the œPre-Budget Report and now effectively a ˜mini Budget) introduced various expected announcements, along with several unanticipated surprises! We have summarised some of the more important (and relevant) announcements below.

ISAs

Under previous rules, any assets held within the wrapper of an ISA effectively lost their tax exemption upon the death of the holder. From 3rd December 2014, the surviving spouse/civil partner will inherit such investments with the tax advantages of the ISA remaining intact. To this extent, they will receive a one-off additional ISA allowance (along with their own normal annual ISA allowance) equal to the value of the assets held in the deceased persons ISA at the time of their death (irrespective of who will actually inherit the assets).

The (adult) ISA allowance will rise to £15,240 from 6th April 2015, which can be applied to either investment or cash based versions and in any combination of the two.

Should you wish to discuss whether saving into an ISA would be worth considering, or would like to discuss the rule changes, then please speak to your usual Caves adviser or contact Peter Brydon on 01604 621421 or by email at pbrydon@caves.co.uk.

Pensions/Annuities

Mr Osborne re-announced the ˜death tax abolition on (defined contribution) pension assets, meaning that with effect from 6th April 2015, beneficiaries of individuals who die before age 75 and have uncrystallised benefits or are in drawdown arrangements, will be able to receive such free of tax. This is a change to the current system, whereby in respect of the latter, tax would be payable, at a rate dependant on how the benefits were received (i.e. income or lump sum).

In addition, he has now re-aligned the rules to also include pension annuities. As a result, from April 2015 any beneficiaries of individuals who die prior to turning age 75 and have joint life or guaranteed term annuities, will receive the relevant income tax free, having previously paid tax at their marginal rate.

In the event of death after age 75, tax will continue to be paid at the beneficiaries marginal rate of tax, whether the income is received as drawdown or annuity (lump sum benefits will be taxable at a flat rate of 45%).

A further announcement made was that of allowing a joint life income to payable to any beneficiary, not just a spouse (or civil partner).

These changes do not affect those benefits that may be payable from final salary pension schemes.

Following some (informal) consultation since the March Budget, the Government has decided not to alter the age limit at which tax relief on pension contributions can be claimed, with this remaining at age 75.

These changes, along with those of the wider ˜freedoms that are due to apply to (defined contribution) pension arrangements with effect from 6th April 2015, add further weight to the argument for those considering making further contributions. Should you wish to discuss this and how some additional funding may benefit you, or would simply like to know how you could establish a new pension arrangement for you (or a member of your family), please contact your usual Caves adviser or speak with Peter Brydon on 01604 621421 or by email at pbrydon@caves.co.uk.

Cave & Sons Ltd is authorised and regulated by the Financial Conduct Authority. Financial Services Register number 143715.