The new budget by Rachel Reeves changed how britʼs think about their money-management (its quite different now)
Starting from apr-2027‚ pension-holders face big changes in inheritance rules; many people need to re-think their plans. Here are key points to consider:
- Moving £20k yearly from pension to ISA could be smart
- Second-home buyers now pay 5% extra tax instead of 3%
- Family business inheritance gets £1m tax-free limit
- Spouse-to-spouse pension transfer stays tax-free
- Trust-based pension plans need review
The stamp-duty changes hit quick - properties worth £350k now need £22‚5k in tax payments which is way more than before. People who made deals before oct-31 dont need to worry about new rates
For business owners its getting more complex: Mike Ambery from Standard Life points out that money-management needs careful planning - pension-to-isa moves might cost extra in taxes. The new rules mean family companies worth over £1m face 20% tax when passed down
Remember money taken from your pension beyond the 25pc tax-free cash is subject to income tax
The death-in-service benefits changed too; police officers families might lose up to 40% of payments. For big estates worth £2m-plus the tax could reach 91% when combining different tax types