Pensions: Labour to “restrict pension tax-relief”

iStock_000024336538_ExtraSmallEd Balls, Labour’s Shadow Chancellor, has announced he will look to restrict the tax-relief paid on some pension contributions should there be a change of Government in 2015. Contributions to pensions currently attract tax-relief. Basic rate tax-payers receive 20% relief, effectively turning an £80 contribution to £100; higher rate tax-payers can claim back additional amounts subject to an overall cap in contributions. Higher rate tax-relief to be abolished? However, the merits of higher rate tax-relief has been continually debated and it now seems Labour are set ...

Taxman targets buy to let investors

Red and White target with three arrowThe taxman is targeting people who have sold properties without declaring the profit and who have therefore avoided paying the tax due. Her Majesties Revenue & Customs (HMRC) has launched ‘The Property Sales’ campaign, targeted at investors who have sold properties for a profit, either in the UK or abroad, but who have not declared the sale and have so far avoided paying the necessary tax. With the exception of an individual’s main residence, any property sold for a profit ...

7 tips to stop inflation attacking your finances

The latest inflation figures saw a sharp rise in the rate at which prices are rising. Inflation is hugely dangerous to our income and savings, even relatively low levels can be hugely destructive, eating away at capital and reducing the buying power of our wages or pensions. The Bank of England has the job of trying to keep inflation under control, although for some years now they have struggled to keep it at the 2% target set by the government. Indeed many economists believe a combination of rising food and energy prices, along with the effects of Quantitative Easing, could mean inflation ...

Savings: Inflation wipes off 10% of the value of savings

A new report by Moneyfacts has shown that the recent high levels of inflation have wiped nearly 10% off the real value of people’s savings over the past five years. Savers, and those people on fixed incomes, for example retirees who have bought a level Annuity, have seen the destructive power of inflation over the past couple of years. Moneyfacts says that £10,000 saved five years ago would now have the buying power equivalent to £9,208, assuming basic rate tax had been deducted and an average rate of interest received....