A Lichfield expert says pensioners in the city are rushing to re-organise their financial affairs since the Government announced a freeze on tax allowances.
Steve Holden, tax director at HCB Solicitors, says the older generation are not only worried about their own position but they are anxious not to be a burden on their families.
From April 6 next year the Government is scrapping the age-related income tax personal allowance so those under 64 are no longer set for a boost at 65. Those currently getting extra tax-free income, will see their allowance frozen at 2012-13 levels.
“The problem is pensioners will have planned their future finances with the age-related income tax personal allowances,” Steve explained. “Now they have to think again.”
There has also been a rise in the number of pensioner couples looking at trust funds to not only protect their own assets but those of their families as well as help in paying care home fees.
Steve said: “Setting up trusts, although complicated, can make sure there is a steady income for the whole family but can also be a benefit in paying care home fees, a major drain on resources as we get older.”
Steve is also part of the Tax Help for Older People team in the UK, an independent free tax advice service for older people on low incomes who cannot afford to pay for professional advice.
“I am making an increasing number of home visits and attending more surgeries for those pensioners who meet the charity’s requirements”, said Steve. “There is no doubt that at whatever end of the economic spectrum the pensioners are, the Government’s move on tax allowances has caused a great deal of anxiety.”
