New Tax Changes Coming Into Effect This Year
There’s not long left to go until the new tax changes will be coming into practice! I’ve already highlighted some of the big changes likely to affect a lot of you, such as the changes in the childcare voucher scheme, and changes in the pension taxes which you may of already seen. However, with the new tax year literally just around the corner, I’ve decided to do a summary of the other things to look out for over the coming weeks.
- Help For Young Savers
So firstly, as I have already mentioned, if your child was born between September 1 2002 and January 2 2011, and they have a child trust fund, you can now move it into a junior Isa. Child trust funds are far more poor paying than Junior Isa’s. Click here for more details on transferring child trust funds into junior Isa’s.
- More Tax Free Earnings
Secondly, the amount we all have to be earning before we get charged income tax will be rising from £10,000 to £10,600 in the new tax year. For older savers born before April 6 1938, it will stay at £10,660. The married couples allowance rises to £8,355 to £8,165. A typical taxpayer will save £825 as a result of the increase in the amount that people earn before they start paying tax!
- More Tax Free Savings
Come April 6th 1.5 million of us will no longer have to pay tax on our savings of up to £5000. The starting rate of savings tax will be cut from 10% to 0% of savings up to £5000.
- Passing On Your Isa
Inheritance tax is due to change for the better. From 6th April, if a spouse or partner should die, then they can pass any Isa savings to their loved one as a one-off extra tax free allowance, whereas it previously wouldn’t of been tax free allowance
- Less Tax On Savings
The tax relief for the less well off is going to be scrapped, and if you don’t have an income above £15,600 then there will be no tax to pay on your savings income of that price.