Chancellor Rachel Reeves is likely to take a close look at pension tax relief as she looks at ways to raise money for the Treasury in her first Budget next month, consultants LCP have warned.
As Benjamin Franklin, one of the founding fathers of the US, famously said: “In this world, nothing is certain except death and taxes.” When it comes to the realm of pension saving in the UK this is certainly true.
As we enter the new tax year we also enter a new era for pensions as I don’t think anyone, outside of government, saw the abolishment of the Lifetime Allowance (LTA) coming.
The Institute for Fiscal Studies (IFS) has been spending a lot of time recently looking at pensions. Before Christmas we had a paper on the tax treatment of pensions on death, and now they have followed this up with their blueprint for a better tax treatment of pensions.