As we navigate through the financial uncertainty brought on by the pandemic, it’s essential to stay up-to-date with personal finance news. Here are five essential updates that every UK citizen should know today.
1) Changes to Pension Tax Relief:
The UK government has proposed a new pension tax relief plan that could significantly impact how much you save towards retirement. Under the new system, tax relief would be flattened at a rate of 20%. This means basic-rate taxpayers would see no change, while higher-rate taxpayers would see reductions in tax relief. It’s essential to reassess your retirement savings strategy under the proposed system to make sure it aligns with your financial goals.
2) Stamp Duty Holiday Extension:
The UK government has extended the stamp duty holiday till the end of June. This means that you will not pay any stamp duty on the first £500,000 of a residential property’s value till the end of June 2021. This initiative aims to provide a financial boost to the property industry and make it easier for people to buy homes.
3) Brexit Impact on Financial Services:
Following Brexit, the UK has lost its EU passporting rights, which allowed financial services companies to operate across the EU’s single market. The UK has proposed a new “equivalence” regime that would allow UK firms access to the EU market. However, the EU has yet to agree to these terms. This uncertainty may impact UK citizens’ access to financial products and services.
4) Changes to Furlough Scheme:
The UK government has extended the furlough scheme till the end of September 2021. However, from July 2021, employers will have to contribute a portion of the employee’s salary to the scheme. This means that employees could see a reduction in their income depending on the employer’s contribution.
5) Cryptocurrency Regulation:
The UK government has proposed new legislation that would significantly affect how cryptocurrencies are traded and stored. The proposed law would require crypto businesses to register with the Financial Conduct Authority and implement stricter anti-money laundering measures. This move aims to tackle the potential risks associated with crypto and protect investors.
In conclusion, staying informed about personal finance news is crucial to make informed decisions about your finances. Keep an eye on these updates and seek professional advice if necessary to make sure your financial strategy aligns with your long-term goals.
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