Winter 2022 Newsletter

The winter edition of our newsletter explores the Autumn Statement, retirement in 2023, changes to NICs, pre-inheritance gifting to adult children and more

24/01/2023
Tier 2_Landscapes
Read full reportWinter 2022 Newsletter
pages

Few will have been surprised at the contents of Jeremy Hunt’s November Autumn Statement, but the detail confirmed what the febrile reaction to his predecessor’s ’unorthodox’ mini-Budget of September foretold – a strategy of tax increases, and extended tax threshold freezes. The Institute of Fiscal Studies has called it “a new era of high taxation”. Added to double digit inflation, ongoing energy price challenges and the resulting cost of living pressures, the picture feels less than rosy.

But there are ways to feel more in control as so much last year did not. Our feature for this edition of our newsletter summarises the major changes from the Autumn Statement likely to affect taxpayers and highlights key areas where tax planning ahead of 6 April 2023 could make a real difference. For example, if additional-rate taxpayers delay pension payments until the new tax year they may gain more tax relief than topping up before the deadline. Realising capital gains before next April could also be a wise move as the annual exemption will halve in 2023/24, and then again the following year.

Alongside analysis of the impact of the Autumn Statement, changes in the investment markets and consumer spending habits our other stories include:

Retirement now and later – Annuity rates have improved significantly this year, making them more attractive for those concerned about retiring now as the country enters a recession. At the same time, numbers of over-65s in employment are also rising as people stay in work longer to delay receiving their pension longer to top up their income.

Untangling NICs developments – After seven months of the increased rate, NICs have returned to their 2021/22 level creating administrative headaches. The timing of any bonus and decisions on bonus or dividends are even more crucial following the Autumn Statement.

Inheritance gifting – why wait? – Children born in the 1980s and later are likely to be less financially secure than their parents. Increasingly adults are being gifted money by their parents to help them out with house purchases, funding business ideas or just the cost of living. But such gifting should be carefully managed.

Download and read the full newsletter at the link below.

Read full reportWinter 2022 Newsletter
pages

Important information

The views and opinions contained herein are those of Benchmark Financial Planning. They do not necessarily represent views expressed or reflected in other Benchmark Financial Planning communications, strategies or funds and are subject to change. This document is intended to be for information purposes only and it is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. Information herein is believed to be reliable, but Benchmark Financial Planning does not warrant its completeness or accuracy. The data has been sourced by Benchmark Financial Planning and should be independently verified before further publication or use. No responsibility can be accepted for error of fact or opinion. Benchmark Financial Planning is not responsible for the accuracy of the information contained within linked sites. Reliance should not be placed on the views and information in the document when taking individual investment and/or strategic decisions. Past Performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested.

Issued by Benchmark Financial Planning Limited. An Appointed Representative of Best Practice IFA Group Limited which is authorised and regulated by the Financial Conduct Authority, the registration number is 223112. Registered office: Broadlands Business Campus, Langhurst Wood Road, Horsham, West Sussex, RH12 4QP. Registered in England and Wales No 07572431.

Topics

Benchmark Financial Planning is an Appointed Representative of Best Practice IFA Group Limited which is authorised and regulated by the Financial Conduct Authority, the registration number is 223112. Registered office: Broadlands Business Campus, Langhurst Wood Road, Horsham, West Sussex, RH12 4QP. Registered in England and Wales No 07572431.

The Financial Ombudsman Service is available to sort out individual complaints that clients and financial services businesses aren't able to resolve themselves. To contact the Financial Ombudsman Service, please visit www.financial-ombudsman.org.uk

The guidance and/or advice contained within this website are subject to the UK regulatory regime and are therefore targeted at consumers based in the UK.