As you will be aware the Chancellor, Alistair Darling, has published his 2010 Budget. Below you will find a summary of the main announcements.

Change to Personal Allowance

No changes to basic and higher rates, however from April 2010 there will be an additional rate band of tax. In April 2009 Budget the Government announced that it would be introducing a new 50% rate of tax on income above £150,000 from April 2010.

In April 2009 Budget the Government announced that with effect from 6th April 2010 individuals receiving an income of more than £100,000 per year would face a cut in their Personal Allowance. This would reduce by £1 for every £2 of income above £100,000.

This was restated in the March 2010 Budget.

Inheritance Tax

The nil rate band of Inheritance Tax will be frozen at £325,000 until 2014/2015.

Stamp Duty Allowance

For first time buyers Stamp Duty Allowance will double from £125,000 to £250,000 (from midnight on 24th March).

This is anticipated to be funded by a new 5% band of tax being introduced in the 2011/12 tax year on properties sold for £1,000,000 +.

Capital Gains Tax

The current CGT rate remains unchanged. However, Entrepreneurs’ Relief for CGT will be extended from £1m to the first £2m of qualifying gains made over a lifetime. This takes effect from April 2010.

Annual ISA limit

As announced earlier, for savers, from April 2010 the annual ISA limit will rise from £7,200 to £10,200. Future ISA limits will be indexed by RPI.

Winter Fuel Payments

The Government will guarantee payments for another year – this will be at least £250 for pensioners (£400 for those over-80′s).

Business Rates

Business rates will be cut for one year from October for SMEs (Small and Medium Enterprises).

Tax credit

Individuals over the age of 60 will now be eligible for Working Tax Credit provided they work for at least 16 hours a week.

National Insurance

In the March 2010 Budget it was restated that employee, employer and self-employed rates of National Insurance contributions (NICs) will increase by 0.5% from April 2011 in addition to the 0.5% increase announced in 2008. However the level at which people start to pay NICs will increase in April 2011 by £570 above the level previously announced.

Personal pensions tax relief

In their April 2009 Budget, the Government announced that with effect from 6th April 2011, tax relief on pension contributions would be restricted for those with gross income in excess of £150,000. These are referred to as the ‘permanent changes’.

The Act also included ‘anti-forestalling restrictions’ to prevent higher earners from paying unusually large pension contribution to take advantage of current tax benefits prior to the permanent changes coming into play in 2011.

Alongside the March 2010 Budget, the Government has outlined its plans for introducing these changes.

In 2009 Legal & General paid 93.6% of their critical illness claims. Only 6.4% of claims were declined – one of the lowest ratios in the industry.

The average payment for a critical illness claim was £70,731. The average age of claimant was 44. The most common conditions claimed for were Cancer, Terminal illness, Heart Attack, Stroke and MS.

 Out of the declined claims, 1.8% were for non-disclosure and 4.6% were for not meeting the policy definition. In total, £152 million was paid out to 2,149 individuals and families, making their lives easier at an extremely difficult time.

Managing Director of Protection at Legal & General, Bernie Hickman, said:

“We’re in the business of paying claims and that should be the main purpose of any insurance provider. We should be there when people need us most, so to have to decline 148 claims during the course of last year is disappointing.

“We have worked tirelessly to combat non-disclosure and we have succeeded in reducing these declined claims year-on-year. However, in an ideal world, no policyholder would ever have a claim declined. If you suffer from an illness or condition that is covered on your policy and you have answered all the questions fully at the time of applying, then we will pay out. This is the way it should be for everyone.

“Protection offers added peace of mind and is good for individuals, for their families and for the State. Fully protected people are less likely to suffer financial hardship, less likely to rely on sick pay and benefits and less likely to require help and handouts from friends and family. Paying out on critical illness claims is absolutely essential to our financial well-being as a society.”

Bernie Hickman chairs the ABI committee that, in 2008, brought about the introduction of the ABI Protection claims code. The new rules resulted in a vast improvement for customers across the industry and an improvement in claims ratios from all providers. This has been a vital step in restoring consumer trust in the industry.

1 Stop Financial Services can help you evaluate the importance of protecting your lifestyle and family with Critical illness protection plans. We can establish the level of cover required and provide you with competitve quotes as to the cost of this essential cover.

Tim, Andy and their wife’s had a very enjoyable evening attending the Radio Pembrokeshire Local Hero Awards on Thursday 25^th February. 1 STOP Financial Services sponsored the Volunteer of the Year and were delighted to spend the evening with the winner Jenni Blair.

 It was very humbling to be at the presentations where local people of all ages were presented with the following awards:

Contribution to the Community Award with Chevron, Pembroke Refinery

• Youth Group of the Year with McDonalds
• Outstanding Bravery Award with The Tenby Observer
• Young Achiever of the Year with Milford Haven Port Authority
• Good Neighbour Award with The Giltar Hotel, Tenby
• Volunteer of the Year with 1 Stop Financial Services, Haverfordwest
• Young Carer of the Year with West Wales Properties
• Adult Carer of the Year with Harris Brothers Tyres
• Contribution to Charity Award with Murco
• Adult Achiever of the Year with South Hook LNG
• Dad of the Year with Folly Farm
• Mum of the Year with Folly Farm

The evening was hosted by Ben & Gareth from Radio Pembrokehire who both done a fantastic job of keeping the evening flowing.

1 STOP Financial Services are very pleased to be associated with the awards and support the local hero’s in our community, for the hard work and dedication they provide.