Savings & Pensions 2016-17

National Savings
Regular sums can be invested in National Savings - some products offer a tax-free return which is an attractive tax efficient investment
for higher rate and additional rate taxpayers as well as children. These are especially attractive to those investors who are more cautious than
others who like to invest on the stock exchange or other markets which might feel a suitable investment for children.

New Personal Savings Allowance
Clause 4 provides for a new personal savings allowance, with effect from 6 April 2016, for savings income paid or credited to individuals.

Basic rate taxpayers will have an annual tax free savings allowance of £1,000 and higher rate taxpayers an annual tax free savings allowance of £500.
Additional rate payers will received no such allowance.
 
ISAs - Limits for Adults
From 6 April 2014 the limit increased from £11,520 to £11,880 (with half this amount invested in a cash ISA with the cash limit of £5,940).

With the introduction of the New ISAs, the limit increased to £15,000 from 1 July 2014.

The limit has increased to £15,240 as from April 2015.

Anyone over the age of 16 can invest in a cash ISA.
 
 
 
Pensions - Standard Lifetime Allowance
The lifetime allowance (LTA) for pension contributions is to be reduced

From £1.25million to £1million, with effect from 6 April 2016. The LTA is to be increased in line with CPI from 6 April 2018.

Those who have already made contributions of more than £1million at 6 April will be protected so that the change is not retrospective.