Budget Autumn 2017 Pension Tax Relief

Retyre

I've read a number of pundits entertaining the possibility that the Chancellor may "rebalance" the tax regime in favour of the young. Some go further in suggesting that pension tax relief especially for those of us with a few grey hairs may be in the cross hairs.

Following the debacle with NICS last time round, personally I wouldn't bet on this (and lets face it in a way one is because if it were to happen you'd be far better making your lump sum contributions before the budget!). That said the corollary is that there may well be some political traction in doing something for the young.........

Whats your view on the chances that this might happen? Many thanks in advance for your thoughts.

ScoobyZ

Buy 2 get 1 free?

http://www.telegraph.co.uk/finance/personalfinance/pensions/11730761/Welcome-to-Britains-new-world-of-buy-two-get-one-free-pension-saving.html

Been on the cards for a while. Put off for the Brexit vote, and then again probably because of the election.

robin61

Not sure that it will get support from their own MPs. But I guess we will see. I'd have thought the last thing Hammond wants is another budget u turn.

michaels

There is also the question of db and sal sac and the fact that pension income is taxable. Suely the annual allowance and tfls are more at risk?

Alexland

I think most voters would have sympathy for assistance targeted at the young but unless he has found a money tree then I don't think they will want it to be at the expense of the middle aged and elder voters. He probably doesn't have enough political or financial legroom to make any substantial giveaways.

Thrugelmir

There's an annual budget deficit still to be bridged. The low hanging fruit has been picked already. I'm sure every avenue is being explored by the Treasury.

robin61

michaels wrote: »

There is also the question of db and sal sac and the fact that pension income is taxable. Suely the annual allowance and tfls are more at risk?

It would be a brave Government that decided not to honour the Tfls. People have been investing in their pension schemes with the understanding they will be getting a nest egg to enjoy their hard earned retirement. I doubt very much that this Government has the confidence to do such a thing. More changes to the annual allowance probably more likely.

Apodemus

Tax treatment of Pension contributions would be very difficult to change in the middle of a tax year, so at worst implementation would be deferred to next April.

bigadaj

robin61 wrote: »

It would be a brave Government that decided not to honour the Tfls. People have been investing in their pension schemes with the understanding they will be getting a nest egg to enjoy their hard earned retirement. I doubt very much that this Government has the confidence to do such a thing. More changes to the annual allowance probably more likely.

The majority of people with pensions probably don't realise there is a tfls, certainly if a few years away from retirement.

EdSwippet

Apodemus wrote: »

Tax treatment of Pension contributions would be very difficult to change in the middle of a tax year ...

And yet, in Dec 2009 Alistair Darling did exactly this at the tail end of the last Labour government. Difficult then, but not something to rule out entirely. Governments of all stripes rarely let impracticality stand between them and a tax grab.

westv

I am 100% certain no change to 25% lump sum.