We have received several enquiries in recent days following the Chancellor’s budget announcements this week relating to the well-publicised changes in pension rules.

Whilst a relaxation was well trailed, the proposed complete removal of the lifetime allowance has surprised many.

As you’d expect, we are discussing the potential opportunities these changes bring and observing the wider discussions across our profession with interest.  With these things, the devil is always in the detail.

Our initial reaction is cautious optimism, but if something seems too good to be true, then that often is the case.  For example, it may have escaped the attention of some that at present only the removal of the lifetime allowance charge (not the lifetime allowance as a whole) will occur from 6 April.  Furthermore, those with protection will only be allowed to make further contributions after 6 April if they wish to remain protected.  

To add to the mix, Labour are already promising to roll back these changes if they are voted in at the next general election which opinion polls suggest they are.

We won’t be advising any changes of tack with our clients’ pensions strategy without seeing how this picture evolves.  This means no action prior to 6 April this year at the earliest.  The last thing we want our clients to do is make irrevocable changes, only to find after the next general election we wish we’d stuck with what we had in the first place.

We anticipate discussions surrounding these new rules to be at the forefront as we continue our planning work with our clients over the next twelve months.  If you’d like to have a chat about it in the meantime, please do not hesitate to get in touch.

Posted by: Matthew Kiddle | Posted in: News