20th March 2015 at 11:25am
Standard Life’s Consumer Finance Expert Julie Hutchison shares the 8 things you need to know from the Budget 2015.
Budget 2015 – Video
Here are 8 things you need to know about Budget 2015….
Most of us will keep more of our income and pay less tax. The first £10,600 of income will be tax free for most of us from 6 April.
If your total income is under £15,600, you won’t need to pay tax on your savings income from 6 April. Don’t forget to fill in form R85 to register for tax free interest with your bank or building society.
If you’re a parent of one of the 6 million children who have a child trust fund, then you’ll be able to transfer it to a Junior ISA from 6 April. This is good news as it means you’ll have more choice about how to save for your youngster.
Around 4 million married couples and civil partners qualify for a new tax cut from 6 April. This applies as long as neither of you pay pays tax at 40% or 45% and if one of you is on a low income under £10,600. You can claim this tax cut online so you transfer some of your tax free allowance to your other half.
You might inherit more of a loved ones pension tax free from 6 April. That’s because the pension death tax of 55% is being scrapped. If someone dies before age 75, with some types of pension, it’ll be passed on tax free. And if someone dies after age 75 and you inherit their pension pot, it’s your income tax rate which applies to whatever money you decide to take out from that pension pot.
If you’re one of the 10 million or so people who have to file a tax return each year, the good news is that digital tax accounts are being introduced from 2016. This means you won;t be faced with a blank tax return anymore and lots of it will already have been completed for you.
ISAs are changing from 6 April. The savings limit goes up to £15,240 and you can use that for cash, stocks and shares or a bit of both.
And finally, pensions are changing from 6 April. From age 55, you’ll have the flexibility to spend what you want when you want from some types of pension. But don’t forget, the money has to last a life time, so don’t feel pressured to take it all in one go because you don’t want to sleepwalk into a tax bill either.
That’s it for this Budget 2015 update….