Budget: Little pension change a ‘welcome respite’
By Tom Carnegie, 22 Nov 17
It is “business as usual” for UK pensions as no major changes were included in the Autumn Budget by chancellor Philip Hammond, although some small tweaks were made to the lifetime allowance, asset management and the personal income allowance.
Lifetime allowance
As previously outlined by the government, the budget includes an increase to the lifetime allowance for pension savings. This will make it in line with the consumer price index and rise from £1m to £1.03m for 2018/19.
Les Cameron, retirement expert at Prudential, said: “It’s good to see the lifetime allowance increase is going ahead as planned. This will see a saving of up to £16,500 for those with large funds.”
AJ Bell’s Selby said: “It is particularly pleasing to see the pension lifetime allowance left alone for once and to get confirmation that it will increase to £1,030,000, in line with inflation.”
Additionally, the budget stated that, from April 2019, tax relief for employer premiums paid into life assurance products or certain overseas pension schemes will be modernised.
This is to cover policies when an employee nominates an individual or registered charity to be their beneficiary.
Tags: AJ Bell | Nucleus | Progeny | Prudential | Rachel Vahey | Tom Selby
