View more on these topics

Is there a summer tax storm on the way?

Following the surprise return of a majority Conservative government, George Osborne announced that he will deliver a second budget statement on 8 July this year.

The need for such an action almost certainly stems from the Tories’ pre-election promise to pass a law preventing the increase of several key taxes during this parliamentary term.  This law will significantly reduce the options available to the chancellor as he seeks to generate Treasury income for the next five years.

So the second budget is not unexpected. The real question is where will the extra money come from? Tackling tax evasion and aggressive tax avoidance will only take the government so far; what they will need are some genuine and guaranteed wins for the Treasury in the short term.

It seems likely that one target here may (again) be a radical change to the tax reliefs inherent in UK pension savings. There is broad political consensus that such reliefs need to be revisited in a post auto-enrolment world, and indeed every party manifesto made reference to this. And with so much money being spent on pension tax reliefs each year, this could well be a key target.

Another consideration is the persistent suggestion that pension savings and tax advantages should perhaps be levelled with other forms of saving (such as ISAs). A persistent advocate of this policy is the think tank the Centre for Policy Studies. This grouping does appear to have the ear of policy makers, so this could also potentially feature.

That said, it should be noted that the new pension freedoms are already likely to be creating a huge positive return to the Treasury coffers. These freedoms allow many savers to (effectively) bring forward their spending of retirement savings, with the associated tax implications that this implies. And the March budget announcement to further restrict the lifetime allowance for pension savings from 2016 will also be beneficial to the Treasury. So it’s quite possible that the chancellor may consider that pensions should be left alone for the moment.

We shall have to wait and see, but it would be prudent to expect at least some further change to this area. It could be another stormy and turbulent period for pensions.

Recommended

5

FCA takes over 13 weeks to approve DA advisers

The FCA took an average of over 13 weeks to approve financial advice firms moving from appointed representative to directly authorised status last year. A Freedom of Information request submitted by Money Marketing reveals the regulator received 171 AR to DA applications in 2014, of which it determined all but one. The quickest decision was […]

Barclays-HSBC-London-Canary-Wharf-2012-700x450.jpg
2

Markets review to push for tougher punishments for traders

A Government review of UK markets is expected to call for more powers to ban individuals involved in misconduct. The FT reports the Fair and Effective Markets Review will also call for harsher sentences for insider trading and other forms of white-collar crime. The review was established by Chancellor George Osborne last June and aims […]

HMRC-Building-700x450.jpg
4

Experts issue SSAS abuse warning

Pension providers are warning small self-administered pension schemes are being used in ways that are not in the best interests of clients. In 2014 HMRC was given new powers to tackle pension plans being registered and used for early access to funds, known as pension liberation schemes. As part of the changes, made to the […]

Martin-Wheatley-Speaking-2013-700.450.jpg
1

Wheatley: Banks’ middle management is regulatory ‘blind spot’

Banks’ middle management is a regulatory “blind spot”, according to FCA chief executive Martin Wheatley. Speaking at a ResPublica banking event in London yesterday, Wheatley said middle managers play a “critical, but underplayed” role in restoring trust and confidence in banking. He said they influence a greater number of colleagues on a day-to-day basis than […]

thumbnail

What employers should expect over the next five years

A major feature of our articles is looking into the Jelf Employee Benefits crystal ball to predict changes and trends that may influence the short and medium term shape of UK employee benefits.  By flagging such changes early we aim to provide our followers with the tools to make sensible and informed decisions on their benefits offerings.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com