1GJgFA7

2.85 Making ISAs more flexible – Individuals will be able to withdraw and replace money
from their cash ISA in-year without it counting towards their annual ISA subscription limit, and
the government will change the rules in autumn 2015 following technical consultation with ISA
providers. (2)
2.86 Lifetime Allowance for pension contributions – The government will reduce the
Lifetime Allowance for pension contributions from £1.25 million to £1 million from 6 April
2016. Transitional protection for pension rights already over £1m will be introduced alongside
this reduction to ensure the change is not retrospective. The Lifetime Allowance will be indexed
annually in line with CPI from 6 April 2018. (Future Finance Bill) (7)
2.87 65+ bond extension – The extension of the availability of 65+ bonds through National
Savings and Investments (NS&I) until 15 May 2015 is estimated to generate £3.2 billion of
additional sales. (5)
2.88 Accessing guidance and key information about pension benefits – Additional
funding of £19.5 million in 2015-16 will be provided to support the new pension freedoms
and the new pensions guidance service, Pension Wise. This funding will extend the availability
of state pension statement and pension tracing services. It will also provide for extra delivery
capacity for Pension Wise: the government has put plans in place in case there is a need to draw
on Department for Work and Pensions resources to help manage any initial spike in demand for
the service. (6)
2.89 Bad debt relief on investments made through the Peer-to-Peer (P2P) lending
industry – As previously announced at Autumn Statement 2014, the government will introduce
a new relief to allow individuals lending through P2P to offset any losses from loans which go
bad against other P2P income. It will be effective from April 2016 and through self assessment
will allow individuals to make a claim for relief on losses incurred from April 2015. (Future
Finance Bill) (n)
2.90 Premium Bond investment limit – The planned increase to the NS&I Premium Bond
investment limit to £50,000 will take place on 1 June 2015, providing further support for savers.
Inheritance tax
2.91 Deeds of variation – The government will review the use of deeds of variation for tax
purposes.
2.92 Inheritance Tax changes to support the new digital service – As announced at
Autumn Statement 2014, the government will make minor changes to legislation dealing with
interest to support the introduction of the new Inheritance Tax (IHT) digital service announced in
Autumn Statement 2013. (Future Finance Bill)
2.93 Inheritance Tax exemption for medals and other awards – As announced at
Autumn Statement 2014, the government will extend the existing IHT exemption for medals and
other decorations that are awarded for valour or gallantry. From 3 December 2014 it will apply
to all decorations and medals awarded to the armed services or emergency services personnel,
and to awards made by the Crown for achievements and service in public life. (Finance Bill 2015)
2.94 Inheritance Tax exemption for emergency services personnel and humanitarian
aid workers – As announced at Autumn Statement 2014, the government will extend the
existing IHT exemption for members of the armed forces whose death is caused or hastened
by injury while on active service to members of the emergency services and humanitarian aid
workers responding to emergency circumstances. It will have effect for deaths on or after 19
March 2014. (Finance Bill 2015)
2.95 Inheritance Tax and trusts – As announced at Autumn Statement 2014, the
government will not introduce a single settlement nil-rate band. The government will introduce
Budget 2015
79