Pension Update - Post Budget
Despite a number of rumours circulating pre-budget about the possibility of Tax free lump sums being either removed or restricted, no changes were implemented.
Despite rumours that income tax relief for higher earners could be reduced or a “flat-rate” of tax relief be introduced on future pension contributions, no changes were implemented.
The big headline was of course pension death benefits to become subject to Inheritance Tax. This proposed change is not due to come into effect until 2027, whilst discussions are held with the pension industry as to how this change is implemented and how it works in practice. 2027 clearly gives some time for this decision to be watered down (if required) or even amended, but certainly for now, there appears to be no immediate requirement to make changes to pensions resulting from the budget.
As always, the devil is in the detail, which will now begin to circulate, and if there are any changes within this we will update further.
The FSWM Team