Good news for pension savers, the Treasury has announced it will delay making any changes to pensions tax relief until Spring 2016 during the next Budget.
Chancellor George Osborne said “We have taken significant steps to encourage saving, not least by giving pensioners control over their pension pots in retirement and by trusting those who have saved all their lives with the money that they have earned and put aside,”
“It is a completely open consultation and a genuine Green Paper, and we are receiving a lot of interesting suggestions on potential reform. We will respond to that consultation fully in the Budget.”
We are very pleased that the government has chosen to delay final decisions on changes to tax relief as this is a very complex system and we are sure the government would not want to dissuade people saving into pensions.
Although, we still believe high earners will have reduced tax incentives to save into pensions in the future.
Of late, we have seen more enquiries from high earners looking to maximise the incentives available and we expect this to continue in the run up to 5th April 2016.
It is important to take professional advice before making any decision relating
to your personal finances. Information within this blog is based on our
current understanding of taxation and can be subject to change in future. It
does not provide individual tailored investment advice and is for guidance
only. Some rules may vary in different parts of the UK; please ask for details.
We cannot assume legal liability for any errors or omissions it might contain.
Levels and bases of, and reliefs from taxation, are those currently applying
or proposed and are subject to change; their value depends on the individual
circumstances of the investor.