Changes to ISA and PEP regulations
- All existing PEPs become ISAs.
- ISA allowances increase to £7,200 from £7,000.
- For the first time cash ISAs can be transferred into stocks and shares.
Maxi and Mini ISAs will not exist - there will simply be cash & stocks and shares ISAs.
Changes to pension tax relief - Personal Pensions
The basic rate of tax changes from 22% to 20% on 6 April 2008. This will affect your personal pension because the tax relief which the Government adds to your pension contribution will also be reduced.
Changes to pension tax relief - Corporate Pensions
The change in basic rate tax will impact on the following policies: Group Personal Pension, Group Stakeholder and Company Pensionbuilder. Employers with these policies should increase their employees' net contributions from 78% to 80% to ensure the same gross amount is paid to employee policies after 6 April 2008. |
