Archive for August 2018

Is the LISA’s short life about to end?

The Lisa may soon end following criticism in parliament.

The Lifetime ISA (LISA) may not survive after low uptake by providers and fresh criticisms from parliament. The LISA has been reviewed by the Treasury Select Committee, which was critical of, “its complexity, its perverse incentives, its lack of complementarity with the pension saving landscape and its apparent lack of popularity with the industry and…

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OBR forecasts present need for tax increases in the Budget

Income tax increases may be coming

The long-term outlook for government finances suggests tax increases are inevitable. The Office for Budget Responsibility (OBR) produces medium-term financial forecasts alongside the Budget and Spring Statement, but that is not its only task. It is also required to take a longer-term view of the public finances, producing a Fiscal Sustainability Report every two years.…

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Residential letting to get more difficult

Tax changes will affect the residential letting market

Draft legislation concerning residential letting, released in July, contains more bad news for those renting out residential property. The Finance Bill 2018/19 draft legislation published just before the summer holidays has confirmed the following measures: From 6 April 2019, the rules for rent-a-room relief (which exempts up to £7,500 a year of income from tax) will…

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Global stock markets prove volatile after the smooth sailing of 2017

Source: LSE   The first six months of 2018 were unpredictable times for investors as global stock markets suffered a sudden bout of volatility. The unpredictability came as a major surprise after the general stability of 2017.  Once the dust had settled there was a mixture of good and bad news. The UK markets were inevitably…

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Is a flat rate scheme coming to pension tax relief?

Pension tax relief

The prospect of a flat rate of tax relief on pension contributions has resurfaced in the national press. The cost of pension relief has been chipped back in recent years, mainly by reducing the annual allowance. However, a report in The Timesin early July suggested the Treasury is looking at flat rate tax relief, which…

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