Although there were no changes to the tax-free lump sum or tax relief on contributions, there were a few changes that could impact BCF members which we have summarised below:
Salary Sacrifice
If you are an employee who contributes through a salary sacrifice scheme agreed with your employer, the Government has put in place some annual limits. From 6th April 2029 pensions salary sacrifice contributions will be capped at £2,000 per year. You and your employer will pay National Insurance employee and employer contributions on any contributions over this amount, but the other tax reliefs you currently enjoy will remain.
Pensions and Inheritance Tax
As we mentioned in the recent newsletter, the Government has announced that it intends to bring pensions within the scope of Inheritance Tax from 6th April 2027 and some further practical details were announced in the Budget
Approaching pension age? Many assume they'll automatically receive a full State Pension at age 66 (the current State Pension age). This is not always the case. But currently there is a ONE-OFF OPPORTUNITY to fix your pension. Keep reading…
