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In his second Budget since the Government’s significantly-reduced majority, it was a startling fact that Phillip Hammond did not mention the word ‘pension’ at all! As suspected, the Government’s Brexit focus meant less of an emphasis on the pension policy areas that are usually subject to Government meddling, but it came a surprise that the world of pensions would again be spared of any changes at all.
In recent months, there have been murmurings of some inevitable tinkering to the tax relief rules. The lack of a strong Government stifles any big reforms such as a wholesale change to tax relief. However with the Government’s significant spending commitment to the NHS, it was widely predicted that there would be some minor changes to tax relief, most likely a reduction in the relief awarded on pension contributions.
It would be comforting to think this is a part of a planned period of stability on pension reform, but in reality it a more likely a reflection of the Brexit distractions coupled with a paper thin majority preventing any significant changes.
The one change that has been confirmed in the Budget papers is the modest uplift in the lifetime allowance. As previously announced, this will increase in line with the Consumer Prices Index £1,055,000 from April next year. This is still a far cry from the level of £1.8m back in 2012, however in these times, we need to be thankful for small mercies!
This information reflects the regulatory and taxation situation as it affects pensions at the time of publication in April 2017 and is provided to the best of our knowledge. It is not a complete representation of the pensions legislator landscape and is for guidance and information purposes only. We cannot be held responsible for any errors, omissions or subsequent legislative changes.
For further information on your pension scheme administered by Morgan Lloyd, or any enquiry, please do not hesitate to call and one of our team members will be happy to helpView more