Another year, another budget, but how does the 2013 Budget impact retirees? Here are the highlights:
- Government confirms review of GAD calculations.
- Flat Rate pension of £144 per week confirmed to commence from April 2016 – there will be protection for Basic and Additional State Pensions already accrued at a higher level.
- No change in Government’s decision to phase out Age-related Income Tax Allowance – likelihood of one allowance for all from 2015 at the latest.
- IHT Allowance – Freeze on IHT threshold at £325,000 until 2019 confirmed.
- Annual Allowance for maximum pension contributions reduced from £50,000 pa to £40,000 pa from April 2014.
