How will the Tory election win affect your family’s finances?

Although it remains to be seen whether some, or all, of the pledges made by the Conservative party before the recent general election come to fruition, here family law expert Janine Hutson explores the potential changes and the impact they could have on your family’s finances.

• The new flexible pension rules will remain in place. These new rules, which came into force in April 2015, gave individuals in certain pension schemes the ability to access their cash from the age of 55. This is good news for the individuals who qualify but specialist financial advice should be sought before funds are accessed.

• In addition to the current £325,000 inheritance tax allowance, a new £175,000 per person transferrable allowance will be available to married couples when they pass their home onto their children upon death. The inheritance tax threshold on family homes is to be increased to £1million by 2017.

• Income tax personal allowances will rise to £12,500 from the current level of £10,600. The threshold for higher rate tax will move to £50,000.

• There will be no rise in income tax, VAT or national insurance contributions before 2020.

• The scheme offering free childcare for working parents with children aged three or four will be doubled to 30 hours per week.

• 500 more free schools will be opened and the amount spent on schools nationally will be increased.

Of course, only some of the above pledges may come to fruition, but it is essential that you seek financial advice in relation to your pension options and specialist estate planning advice in relation to inheritance tax to find out how the above changes could potentially affect you.

To discuss any aspect of family law please contact Janine Hutson on 01772 258321.