Newsletter January 2021
IFS: ‘People born in the 1980s face long wait for inheritance’
The average person in their 30s and early 40s faces a wait until they are 64 to inherit their parents’ wealth, according to the Institute of Fiscal Studies (IFS).
The average age of those losing their last surviving parent is tipped to rise from 58 for those born in the 1960s to 62 for those born in the 1970s and 64 for those born in the 1980s.
Get in touch with Herts & Essex Financial Services for help planning your estate. http://www.handefs.co.uk/our-services/estate-planning
Value of defined-benefits pension pots ‘to fall in 2030’
Retirees can expect to see their future payments fall from 2030, after a planned change to the way inflation is calculated.
Many of those with defined benefit or final-salary workplace pensions see their pension payments rise annually in line with the cost of living.
Inflation is currently calculated using various measures, including the retail prices index (RPI).
Talk to us for pension planning advice. http://www.handefs.co.uk/our-services/pensions
Changes to capital gains tax in the pipeline for 2021/22
Capital gains tax is an area that is ripe for reform in the Spring Budget on 3 March 2021, according to the Office for Tax Simplification (OTS).
Tax on gains made in the UK is charged at 10% and 20% for most taxable assets, or 18% and 28% for residential property that is not a main home.
Speak to us at Herts & Essex Financial Services about your investments. http://www.handefs.co.uk/our-services/investments-and-nisas
Stamp duty land tax holiday fuels mortgage approvals boom
Mortgage approvals in England hit their highest level in more than 13 years as buyers rush to complete house moves before the end of March 2021.
Approvals for home purchases soared to around 97,500 in October 2020, the highest since September 2007, according to the Bank of England.
The figure was 33% higher than mortgage approvals in February 2020, before the pandemic, and around ten-times higher than in May 2020.
Speak to us about your mortgage
Source: Practiceweb January 2021