In this episode of On The Money, Kyle Caldwell discusses the importance of getting your finances in shape ahead of major rule changes that will come into effect from April 2027. The changes include the reduction of the cash ISA allowance to £12,000 for those under 65, the introduction of inheritance tax on unspent pension funds, and the potential exclusion of money market funds from stocks & shares ISAs. Caldwell is joined by Craig Rickman, personal finance editor at interactive investor, to explore these changes and how they will impact individuals. Rickman emphasizes the need for people to plan ahead and make the most of the current tax year to avoid losing out on tax-efficient savings opportunities. The discussion covers the importance of using cash ISA allowances before they are reduced, the potential impact on savings tax rates, and the role of money market funds in stocks & shares ISAs. Rickman also highlights the changes to pension rules, including the introduction of inheritance tax on unspent pension funds, and the importance of planning ahead to avoid unexpected tax bills. The conversation concludes with a focus on inheritance tax gifting rules and the need for individuals to carefully consider their financial planning to maintain their lifestyle in retirement while reducing their inheritance tax liability.
