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NEWS

TAX LEGISLATION

Some Useful Fact & Figures (as at 01/01/2010)
Bank of England Base Rate 0.50%
RPI Rate of Inflation 3%
Capital Gains Tax Allowance £10,100 per annum
Inheritance Tax Threshold £325,000
Stocks & Shares ISA £7,200 per annum
£10,200 over 50*
Tax Relief on Pension Contributions 20%
Income Tax Threshold Under 65 £6,475
Income Tax Threshold 65-74 £9,490
Income Tax Threshold 75+ £9,640
Age Allowance £22,900
Earnings before higher rate tax £37,401
New Tax Rate for Higher Earners 45% for earnings over £100,000
50% for earnings above £150,000
Level of FTSE 100 5,413
Eagle FS Telephone Number 01584 877726

What you might get in any one year (based on long term averages – cannot be guaranteed.

Asset Type
Long Term Annual Returns *
Cash
4.4%
Bonds
5.6%
Property
6.0%
Others
10.0%
Equities
11.0%
Total
*For Unit Trust & OEICS

GOVERNMENT LEGISLATION

Pension Legislation

The Government are undertaking discussions regarding compulsory contribution to Personal Accounts provided by the Government.

Updates on this subject will be provided when concrete information is provided.

Pensions higher rate tax relief further restricted from 9 December 2009 for incomes over £130,000 in addition to incomes over £150,000 introduced in April 200

Income - Incapacity Benefit
From 27th October 2008 the Government have introduced a new system for Long Term Incapacity.

Incapacity Benefit has now been replaced by Employment & Support Allowance [ESA].

The change reduces the Statutory Sick pay period from 28 weeks down to 13.

Beyond this point an individual has to apply for ESA. They will be medically assessed and are required to score at least 15 points before being accepted for further benefit payments.

The estimate is that only 50% of applicants will qualify for further benefit payment.

80% of that initial 50% may then qualify for Work Related Activity payment and will be re-assessed every 2 months. It is estimated that the other 20% may qualify for the Support Group allowance which will be higher than the work related with not further assessment requirement.

The Government’s aim is to reduce Long Term sick benefits from 2.7 million people down to 1.7 million by 2015 with the final target being reduced down to 700,000.

State Benefits
Basic state pension will rise by 2.5% in April 2010

Taxes
Inheritance tax to be frozen at £325,000 until 2011

VAT to return to 17.5% from 15% from 1 January 2010.

National insurance rates to rise by 0.5% from April 2011

Increase in corporation tax for small businesses to be deferred

Inheritance Tax

Law
New data protection laws will come into force on 6/4/2010

The Information Commissioner’s Office (ICO) will be able to order organisations to pay up to £500,000 as a penalty for serious breaches of the Data Protection Act. The ICO has produced statutory guidance about how it proposes to use this new power, which has been approved by the Secretary of State for Justice, and has been laid before Parliament earlier in January

 

Registered Office: Eagle Financial Services, Suite 8, 54 Broad Street, Ludlow, Shropshire SY8 1NH
Telephone: (01584) 877726 Fax: (01584) 879913
Registered in England and Wales. Company Registration No.04357292

Eagle Financial Services Limited is authorised and regulated by the Financial Services Authority. The Financial Services Authority does not regulate will writing, taxation and trust advice and some aspects of offshore investment and commercial mortgages.

Our FSA Register number is 400826
You can check this on the FSA’s Register by visiting the FSAs website www.fsa.gov.uk/register or by contacting the FSA on 0845 606 1234

Further financial information is available on the Financial Services Authority’s consumer website http://www.moneymadeclear.fsa.gov.uk/home.html

The information contained in this web site is for general information only and is not financial, investment or tax advice. It is also subject to the UK regulatory regime and is therefore restricted to consumers based in the UK. If you would like to discuss a particular issue or generally ask us how we can advise on your particular situation then please contact us.