“‘This time it feels different’: What could happen to pensions in the Budget?”

Sep 26, 2024 | Pensions

An independent (financial adviser’s) view

Speculation is still rife about potential Budget tweaks and/or big changes to pensions. The tax-free lump sum is one that many are worrying about. I can’t see it going altogether, but it is currently capped at around £256,000, a quarter of the now-abolished lifetime allowance (I know). So the cap could be reduced; but how much would that raise to fill the £22bn black hole? Not a lot. Similarly, the annual allowance, the amount you can pay in and still get tax relief was increased to £60,000 from £40,000. It, too, could be reduced, although it was increased to keep doctors and consultants and others in big final salary schemes from ending up with unexpected tax bills and so retiring early. So, really? I’m not convinced; but if there are any radical changes, I didn’t say that, and you heard it here first. No easy answers, I’m afraid.

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“HMRC: ‘digitalising tax process could close gap’”

“HMRC: ‘digitalising tax process could close gap’”

You, like a majority of both taxpayers and accountants, may have been sweating and cursing over a keyboard last week to submit a last-minute tax return. Many by the end of that accursed process will have been shouting ‘bring back paper!’, a vain and pointless hope, I’m afraid.