Tax help for older people
Following changes announced in the Chancellor’s Autumn Statement and the last Budget, these points may be of interest to older people.
In line with government policy, the basic State Pension will be increased by 2.5% in April 2015; a cash increase of £2.85 per week for recipients of the full basic state pension. Pension Credit will rise by the same amount as the cash increase in basic state pension.
Currently, a spouse, partner or beneficiaries pays income tax on inherited pensions at their marginal rate. Where the first payment of an annuity is after 5 April 2015, they will be tax free if you die before age 75. Additionally, a joint-life or dependant’s annuity will now be able to be paid to anyone after you die. On their subsequent death any value protection or remaining guarantee period can be paid to anyone.
Tax Help for Older People (operated by registered charity no 1102276), offer free tax advice to older people on incomes below £20,000 a year. The Helpline number is 0845 601 3321 or geographical 01308 488066.