Pension Relief and the budget

[freespeech]

I'm hearing a few noises that the Chancellor may change arrangements for tax relief in next weeks budget. Hope not.......I assume that will only impact "new" payments and nothing already paid or due when the pension is taken (ie the 25% tax free bit).

[RobertT]

Budget time usually coincides with financial journalists commenting on what might happen to the various benefits of pensions.
It usually concerns tax relief and whether that will continue at current rates, the 25% tax free limit when taking the lump sum and the triple lock on state pensions.

I think I read somewhere, that there's about 130 different taxes and reliefs concerning income tax, pensions, CGT, IHT, etc. So there's plenty of room for cuts in all sorts of areas.

It's usually just guesswork to fill some column inches, so all you can do is wait until the 3rd March and see what Rishi has planned.

[Woody Guthrie]

The only good thing about having a Tory government is that they're usually terrified to go after pensioners.

The poor and the disabled are fair game but pensioners are their core voter base.

[JKSmudge]

There is talk of removing the 40% rate of relief on payments INTO pensions for higher earners. This has nowt to do with the 25% Tax-free lump sum and certainly not heard of anything regarding that.

[NorthernBoy]

Always speculation about pension changes ahead of every budget, more so this time due to the nations finances.

Anything is possible and yes it’s possible 40% rate relief might get removed. Cant see the 25% tax free lump sum being taken away, at worst they may but a limit on it, but that won’t affect people with the sort of lumps sums on here.

Personally I don’t foresee any big changes as they have been successful in getting people to save more with compulsory schemes, so I can’t see it changing at least at the bottom end.

However, if you are thinking of paying in a lump sum to your sipp, it may be worth doing now to ensure you definitely do get the tax relief.