magazine archive

magazine archive

Ask Tom

What do I need to know about the Scottish budget?

Thursday 13 Feb 2020

I know everyone is focused on the main UK Budget next month, but is there anything I need to be aware of from the Scottish Budget? I live in Ayrshire and have taxable income of £45,000 a year and pay around £5,000 a year into my ISA. I also receive about £3,000 in dividends via my general...

Help, I’ve missed the full tax relief on my pension

Thursday 06 Feb 2020

I’ve been paying into my workplace group personal pension (GPP) for just over three years and only just realised I’m missing out on pension tax relief. I earn £70,000 a year and pay about £5,000 of this into my GPP (matched by my employer). However, I’ve only been receiving basic-rate (20%) tax...

Should I use a Lifetime ISA for retirement savings?

Thursday 30 Jan 2020

I’ve been saving in a SIPP but wanted to know if the Lifetime ISA is worth considering for some of my retirement money (I already own a house)? I’m paying in about £5,000 a year so far and receiving 40% tax relief (20% automatically and 20% through my tax return). Matt Tom Selby, AJ Bell Senior...

‘How could inflation measurement changes affect my income?’

Thursday 23 Jan 2020

If the Government replaces RPI with CPIH, what will happen to existing contracts? I am currently in receipt of an annuity paying just over £15,000 that increases in line with RPI, while my wife has a small defined benefit pension which also enjoys RPI-linked rises. Will our incomes effectively be...

‘How do VCT and EIS products work alongside a pension?’

Thursday 16 Jan 2020

I’ve maxed out my pensions lifetime allowance of £1,055,000 and am looking for alternative ways to invest my money in a tax efficient way. Can you explain how VCTs and EIS product work? David Tom Selby, AJ Bell Senior Analyst says: ISAs are the best known alternative to pensions, allowing you to...

‘How does the lifetime allowance test at 75 work?’

Thursday 19 Dec 2019

My SIPP is currently worth £900,000. If I crystallise the fund into drawdown today, will that mean I avoid a lifetime allowance charge if it subsequently grows in value above £1,055,000? Romesh Tom Selby AJ Bell Senior Analyst says: There are a number of ‘benefit crystallisation events’ which HMRC...

‘How much can I pay into a SIPP when I’ve also got a defined benefit pension?’

Thursday 12 Dec 2019

I’m a civil servant and fortunate to have a defined benefit pension. I plan to retire prior to my scheme’s normal pension age and intend to leave this pension preserved as long as possible. I will be receiving a lump sum in the region of £60,000 from some investments and I’m considering adding this...

‘What would happen to pension tax relief under Labour?’

Thursday 05 Dec 2019

What would happen to pension tax relief under Labour? I know they’ve proposed increasing income tax for the wealthiest but wouldn’t this just encourage more people to pile money into pensions? Jeffrey It’s impossible to know for sure what either of the major political parties will do on pension tax...

‘Am I getting value for money with my workplace pension?’

Thursday 28 Nov 2019

I’m just getting started saving in a pension (bit of a delay as was focused on paying off some credit card debts and saving for a house in my twenties). I’ve been automatically enrolled into a scheme through my employer and they are charging me 0.75%. Should I just stay where I am or move my money...

‘How much can I put in my SIPP when my only income is from pensions?’

Thursday 21 Nov 2019

I am retired and my income is all from pensions. How much can I contribute to my SIPP in this tax year? I have no other earned income and have not yet taken any income from my SIPP. Anonymous Tom Selby, AJ Bell Senior Analyst says: You are only able to make tax-relieved pension contributions up to...