03.10.2007

New state pension rules on the way. Capital allowances to be overhauled from March 2008.

Our Alerts provide details of key changes, issues and opportunities, and include our suggested actions and links to more information. If you need additional information or have any concerns regarding any of the areas below please contact us or a member of your client service team at Scott-Moncrieff.

New State Pension Rules on the Way

The Pensions Act 2007 is the biggest overhaul of state pension entitlement since they were introduced. The Act goes a long way to improve the pension rights of many workers who have not been able to pay NIC throughout their working life. The minimum term for a full pension will reduce from 44 and 49 years to 30 years for those due to retire on or after 6 April 2010. This also means that fewer people will need to pay voluntary contributions to make up their pension rights. There will also be a gradual increase in the state pension age and better rights for carers.

Capital Allowances Changes Afoot

The complete overhaul of capital allowances form March 2008 may mean that some businesses will need to plan in advance. We do not have absolutely all of the details, but some advance information is available. It is possible that more will be announced in October, as we are expecting the Pre Budget report to be delivered then rather than its traditional timing of December. For those who are constructing a new property, or refitting an existing property, the changes may mean a reduction in allowances on integral fixtures, but contracts placed before March 2008 will be taxed under the existing rules. Keep a lookout for more information!

If you like to be notified when our next Business Alert is published please contact Kelly Drew.