Budget  

Guide to pension tax and the Budget

  • Describe some of the changes to the pension tax system
  • Identify the impact this will have on tax saving
  • Explain the significance for financial advisers
CPD
Approx.30min
Guide to pension tax and the Budget
Chancellor of the exchequer Jeremy Hunt holds the budget box on Downing Street in London, March 15 2023. (Reuters/Peter Nicholls)

Introduction

By Melanie Tringham

The Budget last week took everyone by surprise when Jeremy Hunt announced the abolition of the lifetime allowance.

While Labour immediately announced they would bring it back if they came into office, for now it has dramatically altered the pension landscape. 

There were other changes too, to the annual allowance and money purchase annual allowance, all providing a more benign landscape for pension saving.

This could have consequences for the assets people invest in, the size the pension pot grows to over one's lifetime, and the consequences of that for financial planning.

This guide is worth an indicative 60 minutes of CPD.

In this guide

CPD
Approx.30min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. Announcements in the Budget mean that those that have taken some money out of their pensions can now top it up with more contributions, true or false?

  2. According to the first feature, what is the verdict on the impact the changes will have on those nearing or at retirement age?

  3. What impact will the changes have on pension sharing orders?

  4. In the third feature, what does Josh Ross-Field say will be the impact of the changes on VCTs and EISs?

  5. The impact of the taxation changes on pension funds' investment will mean investors can take more risk with their pension fund, according to the third feature, true or false?

  6. According to the fourth feature the possibility of the Labour Party reinstating the lifetime allowance will mean more opportunities for financial advisers, true or false?

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • Describe some of the changes to the pension tax system
  • Identify the impact this will have on tax saving
  • Explain the significance for financial advisers

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