Budget 15th March2023, any pension changes predictions or views?

JoeCrystal

rickenbacker330 said:

Where’s the catch?

I am waiting for when the whole documents and factsheets get published on the Uk Treasury website!

saucer

Simon11 said:

Abolishing the LTA removes 1/3 of the post on this board!

What will we do with all that time (once the NI posts have settled down) haha

I know!  We’ll have to find new things to speculate about 

artyboy

rickenbacker330 said:

Where’s the catch?

The longer term catch is that it adds to the argument to include pensions within IHT calcs. Won't be simple to do, but if we get a hardish-left government in my lifetime, I wouldn't bet against it...

ussdave

The left wing part of me can't help but feel that abolishing the LTA entirely will benefit only the richest in society.  I appreciate it might not be a popular view given this is a pension forum but I think a higher limit and a commitment to track inflation would be a better outcome.

repeat

Any mention of the salary taper being changed?

JoeCrystal

Reforming pension tax thresholds – The government will increase the Annual Allowance from £40,000 to £60,000 from 6 April 2023. Individuals will continue to be able to carry forward unused Annual Allowances from the 3 previous tax years.

The government will increase the Money Purchase Annual Allowance from £4,000 to £10,000 and the minimum Tapered Annual Allowance from £4,000 to £10,000 from 6 April 2023. The adjusted income threshold for the Tapered Annual Allowance will also be increased from £240,000 to £260,000 from 6 April 2023.

The government will also remove the Lifetime Allowance charge from 6 April 2023, before fully abolishing the Lifetime Allowance in a future Finance Bill. The maximum Pension Commencement Lump Sum for those without protections will be retained at its current level of £268,275 and will be frozen thereafter.

Linking open and closed public service pension schemes – Open and closed public service pension schemes for a given workforce will be considered linked for the purposes of calculating Annual Allowance charges, thus allowing members to offset any negative real growth for Annual Allowance purposes in legacy public service pension schemes against the Annual Allowance. This will be legislated for through secondary legislation and will apply from April 2023 tax year.

Gerbert

artyboy said:

rickenbacker330 said:

Where’s the catch?

The longer term catch is that it adds to the argument to include pensions within IHT calcs. Won't be simple to do, but if we get a hardish-left government in my lifetime, I wouldn't bet against it...

I never understood why more fuss wasn't made at the time when it became possible to avoid IHT by passing assets on via a pension.  If you are going to have IHT at all then can't see any possible justification for it.  I suppose that was Osborne's point: to  drive a coach-and-horses sized loophole through the whole concept of IHT.  By why didn't the Labour Party make more of it?

westv

I suppose the increase in the tax free amount to 50% will have to wait until another time. 

Pat38493

JoeCrystal said:

 The maximum Pension Commencement Lump Sum for those without protections will be retained at its current level of £268,275 and will be frozen thereafter.

Does mean the tax free cash part of DC is also being frozen / capped at a fixed amount rather than 25%?  So the value of the tax free cash part will slowly fall in real terms?

artyboy

JoeCrystal said:

Reforming pension tax thresholds – The government will increase the Annual Allowance from £40,000 to £60,000 from 6 April 2023. Individuals will continue to be able to carry forward unused Annual Allowances from the 3 previous tax years.

The government will increase the Money Purchase Annual Allowance from £4,000 to £10,000 and the minimum Tapered Annual Allowance from £4,000 to £10,000 from 6 April 2023. The adjusted income threshold for the Tapered Annual Allowance will also be increased from £240,000 to £260,000 from 6 April 2023.

The government will also remove the Lifetime Allowance charge from 6 April 2023, before fully abolishing the Lifetime Allowance in a future Finance Bill. The maximum Pension Commencement Lump Sum for those without protections will be retained at its current level of £268,275 and will be frozen thereafter.

Linking open and closed public service pension schemes – Open and closed public service pension schemes for a given workforce will be considered linked for the purposes of calculating Annual Allowance charges, thus allowing members to offset any negative real growth for Annual Allowance purposes in legacy public service pension schemes against the Annual Allowance. This will be legislated for through secondary legislation and will apply from April 2023 tax year.

....aaaaaaand, THERE'S the catch. Although is PCLS a DB scheme specific term?