Welcome to ALTYX  FINANCIAL PLANNING’s Winter Newsletter

I am delighted to introduce the Winter 2016 ALTYX Financial Planning newsletter.

You will note that articles are written in English or French reflecting the significance of the matter.
I hope that you find it to be both interesting and informative.

Please do not hesitate to contact me at if you would like to discuss any of these articles or indeed have any questions.


The tapered Annual Allowance - High Earners Need to Act Now

Once again we have had some changes in the Pension world and it is time to act on this before the end of the Tax year.

In the Summer Budget this year, the Government announced that they were going to restrict the Annual Allowance limits for individuals who had ‘income’ over £150,000.  This was to ensure that the cost of tax relief was controlled and that the system became fairer for all.  The Tapered Annual Allowance will come into force from 6th April 2016.

The rate of reduction in the annual allowance is by £1 for every £2 that the adjusted income exceeds £150,000, up to a maximum reduction of £30,000.
Since their ability to pay tax advantaged contributions will reduce, these individuals with earnings above £ 150,000 may want to pay as much as they can before the reduction comes into force.

This will often mean using carry forward of unused annual allowance from previous pension input periods to boost the annual allowance available.

The Summer Budget also announced that all pension input periods must be aligned with the tax year and introduced transitional arrangements which had effect from 8 July 2015 (the date of the Budget).

These transitional arrangements mean that in many cases, more annual allowance is available than anticipated and so there may be scope for higher contributions to be paid before the reduction in annual allowance takes effect.

What is an ISA?

The Individual Savings Account (ISA) is a tax-free scheme for saving. For investors, the returns from ISA savings are free of UK income tax and capital gains tax.

With a maximum subscription of £15,240 per individual for the tax year 2015/16, a married couple/civil partners could jointly save £30,480 each year. If they saved this amount each year for ten years they would have a fund of almost £500,000 with fund growth at 5% compound per annum.

With a wide choice of investments that can underly an ISA, and its tax efficiency, an ISA is often the first port of call for an investor, particularly for higher rate and additional rate taxpayers as well as for and those restricted as to the amount of tax-relievable pension contributions they can make or benefits they can accrue because of existing pension provision.

Recent and forthcoming changes for ISAs:

Flexible ISA

Money can be taken out of an ISA at any time. However, before 6 April 2016 any money that is put back into the ISA to replace the money withdrawn earlier will count as a new subscription.

From April 2016 savers can withdraw and replace their savings in the same tax year without losing their ISA tax benefits. Savers can cover short-term needs without the long-term damage.
ISA benefits can now be passed on to spouses

Since April 2015 upon your demise, your spouse or civil partner is entitled to keep your ISA savings without losing this tax shelter. This represents a bonus for couples who have jointly saved into an ISA held in only one name.

Under the new rules, individuals will be permitted to save an additional amount in an ISA, up to the value of their spouse or civil partner's ISA savings at the time of death, without this amount counting against the surviving spouse's/civil partner's normal ISA subscription limit.

However, for deaths on or after the 3 of December 2014, an additional on-off ISA allowance is available to spouses or civil partners when an ISA saver dies, equal to the value of that saver's ISA holdings on their date of death. This effectively allows surviving spouses and civil partners to inherit the tax advantages of a deceased spouse's ISAs.

Innovative Finance ISA

Under this new account, interest and gains from peer-to-peer loans paid into an ISA can benefit from the ISA tax advantages from April 2016.



Loi de Finance pour 2016 du 29 Décembre 2015
2016 devrait voir une vraie évolution ou révolution de l’imposition des revenus en France, avec la mise en place du prélèvement à la source.
Loi de Finance pour 2016 du 29 Décembre 2015 confirme l'engagement de l'imposition à la source, en posant le principe de la présentation des modalités de cette réforme au Parlement par le Gouvernement avant le 1er octobre 2016 (art 34).

Nous avons de grands débats devant nous la date de mise en place effective étant 2018.
Life Time Allowance reducing
The standard pensions lifetime allowance (LTA), which is the total value of pension savings that can be accumulated without a tax charge, will be reduced from £1.25m to £1m from 6 April 2016.

Any excess over that limit will be taxed at 55% (if taken as a lump sum) or 25% (if used as an income) when the member starts to take their pension or benefits.

Fixed Protection and Individual Protection 2016 will be available for those with funds above this £ 1m.

Should you have any query, do not hesitate to get in contact with us. 

Automatic Enrolment
Auto-enrolment is progressively being implemented and now smaller companies will have to set up a workplace pension.

Pension contribution increases were originally scheduled for 1st October 2017 (on which date the contributions increase for employers to a minimum of 2% and 3% for employees) and 1st October 2018 (the contributions were set to increase to 3% for employers and 5% for employees).

Subject to Parliament approval the effective dates of the increases have now been delayed by six months so that they are aligned with the tax year.
The October 2017 increases will take effect from April 2018 and the October 2018 increases will take effect from April 2019.

Berangere Hassenforder
Chartered Financial Planner
Conseiller en Gestion de Patrimoine

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