Following our article in last week’s Weekly Tax Matters, the press have reported that George Osborne is no longer expected to announce pensions changes at the Budget on 16 March. Previously, it had been anticipated that the Chancellor may have announced reforms to the taxation system, such as a move to an ‘ISA-style’ system, but a Treasury source is reported to have said that it is “not the right time” for such changes. It remains to be seen whether the Chancellor will revisit the changes at a later date, or if reform is now off the table completely for this Government
The consultation has forced the pensions industry and employers to think about the place of pensions. Once we have more clarity on 16 March, thoughts are likely to turn to the implications for longer term planning, especially if future changes are not ruled out. In addition, the complexities of the tapered Annual Allowance and lower Lifetime Allowance will come in to force on 6 April 2016 regardless.
With major pensions reform now appearing to be off the table, it remains to be seen what other tax surprises the Chancellor may have up his sleeve. To keep up to date on the tax announcements at the Budget, you can visit our external webpage. We’ll also be holding a webinar at 9am the day after the Budget, looking at the tax implications for businesses, individuals and employers.