2020 Budget: What could it mean for pensions?

In our latest news piece, Morgan Lloyd Technical Director, John Dowding, shares his thoughts on the 2020 Budget on March 11th, and what this could mean for pensions.

Pensions has enjoyed a relative period of stability over the last couple of years, no doubt because of Brexit distractions. The big news will likely come at this month’s Budget where it had been expected that the much talked about pension tax relief would be slashed. That was until the shock departure of Sajid Javid. It is not implausible that the new Chancellor, Rishi Sunak, might be inclined to abandon the new government’s socialist leanings, and retain the higher relief rates after all.

Whatever happens, the complex tapering rules needs some urgent attention, and not just for the well-publicised issues with doctors and other high earning NHS officials. This needs sorting for all higher earners in both the public and private sectors.

With pensions very much back in the cross hairs, we will be watching with cautious anticipation on March 11th.

Our post-budget news piece will reflect on those decisions where we will discuss the future for pensions.

The information above is based on our understanding of the legislation applicable to UK Registered Pension Schemes, and HM Revenue & Customs rules. It is provided as a summary only and should not be taken as advice - Morgan Lloyd SIPP Services Ltd and Morgan Lloyd Administration Ltd are not authorised to give financial advice and will not be responsible for any decision or action taken as a result of relying on this information. If you are a retail client you should seek financial advice from a financial adviser who is authorised by the Financial Conduct Authority and/or seek guidance from the Government’s Pension Wise service.