The government has "cast a cloud" over tax relief on pensions, says John Cradden in The Sunday Times. News of the government's proposal to introduce a single 33% rate of tax relief on pension contributions and restrict the tax-free lump sum element of any pension to e200,000 (the rest will be taxed at 20%) has already prompted many high-earners either to maximise their pension contributions now or retire early. But while the proposals may not come in until 2014, plan now.
The age at which you can take the 25% tax-free lump sum will rise from 50 to 55 in April, says Nina Montagu-Smith in the same newspaper. Given it can take 40 days to unlock it, should you rush to access your lump sum now?
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Inheritance tax investigations catch out 1200 more families in HMRC crackdownWhere there is a suspicion inheritance tax has been underpaid, HMRC has extensive powers to check the deceased individual’s financial affairs and chase what is owed. Will you pay more?
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Bank of England expected to cut interest rates despite sticky inflationEconomists and industry experts think that a weakening economy will force the MPC to stick to its cutting schedule in spite of inflation running above its target.
