Financial & Legal News

Autumn statement – Pearsons Jonathan Beardmore puts his own unique slant on George Osbornes statement.

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This week Chancellor, George Osborne made buying mansions a lot more expensive.  Bad news if you’re buying an 18 bedroom mock Tudor stately home, still it’s a good idea to take your lumps now and avoid the alternative of a yearly mansion tax that seems to be gaining  political traction every week.

If you did have a large stamp duty bill that appeared out of nowhere overnight, at least you could now fly young Matilda and Harry to Verbier at a slightly reduced rate, so in essence every cloud…

The Chancellor used all his political cunning to tax things that are fashionably unpopular, banks, Non-doms and the super-rich and to give to the less fortunate, this includes 2 billion to the NHS and under 16s flying to ski resorts .

There has however been a very quiet revolution for those who have been prudent enough to save for their futures and we have travelled a long way from the days of Gordon Brown’s pathological hatred of pension drawdown.

So what is this revolution we speak of? Well simply put it is the government rewarding savers and trusting people to manage their own money!

In the last twelve months we have seen the increase in ISA (now called NISAs) allowances and an overhaul in their flexibility, personal pensions have been freed from ludicrous annuity rules and are now viewed as a legitimate option for those looking to invest for their futures.

Yesterday NISAs were once again in the spot light.  In the past, financial planners have had to grapple with the tax efficiency offered by NISAs verse the potential Inheritance tax implications. Since April’s budget the bigger NISA can not only hold IHT efficient AIM shares but now NISA Allowances can be passed from one spouse to another.

Regardless of your political persuasion the Chancellor’s decisions on both pensions and NISAs have allowed for simplicity and far more effective financial planning.

In addition the introduction of graduated Stamp duty rates has allowed for people to choose a home based on their needs rather than the stamp duty bandings and it might just slow down the property boom at the upper end of the market.

Although there will always be those who scream from the side-line about people blowing their pensions on Ferrari’s or Yachts, the reality is that people who are given the freedom to act in their best interest and receive good advice will ultimately make good decisions.

The Autumn statement a lot like the budget has allowed us a few more significant tools to help our clients achieve their goals for which I think we should all be thankful.

Please note that the information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by Pearson Solicitors and Financial Advisers Ltd or any of its members or employees. Professional legal advice should be obtained before taking, or refraining from taking, any action as a result of this article.

This blog was posted some time ago and its contents may now be out of date. For the latest legal position relating to these issues, get in touch with the author - or make an enquiry now.

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