Budget 2015: Pension Headlines
Yesterday the Chancellor George Osborne, delivered his 2015 budget, the last before the General Election. We have highlighted below the key pension headlines that were announced:
- A person's personal income tax allowance will be going up from £10,800 in April 2016 ,to £11,000 in 2017. (You can read more about personal allowances and income tax rates here)
- A person's lifetime allowance will go down from £1.25 million to £1 million from April 2016, although no changes were announced regarding the £40,000 annual allowance that can be paid into a pension arrangement each year. (You can find out more about the Lifetime Allowance here)
- A new personal savings allowance was announced, which means £1,000 of interest will be earned tax free for basic tax payers.
- The Government will allow individuals who have purchased annuities in the past, the opportunity to sell their policy and reallocate the payments to a third party from April 2016. The Government has launched consultation on the workings of this traded annuity market which is expected to apply various controls on the market. The consultation closes in June 2015, where we will have more details then.
If you want to talk through how any of these changes might affect you, please call one of our pension technical specialists on 0300 123 1047 or you can use our live web chat service (service opening hours Mon-Friday 9-5pm).