“Budget rumblings: Is Labour really going to axe pensions tax relief?”

Sep 19, 2024 | Pensions

An independent (financial adviser’s) view

‘What will happen in The Budget?’ (never sure whether to capitalise, answers on a postcard, please) is still the hot topic at every meeting and on every call. As discussed, seemingly endlessly here, will it be CGT or IHT, will they have to courage to bump up income tax and, perhaps more importantly to many, what about pensions? Apart from the ‘protect hard-working families/those with the broadest shoulders’ line, there’s been precious little in the way of leaks and pointers. Tax relief, tax-free lump-sums, lifetime allowance, death benefits? I don’t think so, and perhaps the best indication that nothing will happen sooner rather than later is that Labour has committed to a review of the whole pensions system. What that will mean and how long it might take, who knows, but any radical change or even tinkering now would seem a bit daft. But, well, that’s never stopped many previous a chancellor…

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