Summer Budget

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Lump sum death benefit charge confirmed

Lump sums paid to beneficiaries will be taxed at the recipient’s marginal rate from next year, the Government has confirmed. Under the changes to the treatment of pensions on death announced at last year’s Autumn Statement, the Government announced pensions in drawdown would be taxed at the beneficiary’s marginal rate if the member died over […]

Banks face ‘short-term pain’ over profit charge

Chancellor George Osborne says the Government will “gradually” reduce the bank levy over the next six years but plans to hit the sector with a new charge on profits. Under proposals laid out in the Budget, the bank levy rate will decrease from 0.21 per cent to 0.18 per cent from 1 January 2016 and will […]

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Another pensions revolution? Osborne eyes radical tax overhaul

Chancellor George Osborne has fired the starting gun on radical proposals that could rip up the pensions tax system. In a consultation published as part of this week’s Budget, the Conservatives’ first in 18 years, Osborne says he wants to create a “lasting system” that “stands the test of time”. Pensions experts have long called […]

HMRC clamps down on fund manager performance fees

The Government is clamping down on individual fund managers looking to mitigate the tax applied to their performance fees. HMRC says it is aware of fund managers claiming their funds are “investing”, rather than “trading”, with a view to linking their performance fees to the performance of the underlying funds (or “carried interest”) which is […]

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Budget: Labour backs personal allowance reforms

Labour interim leader Harriet Harman has backed Chancellor George Osborne’s plans to cut taxes for working people but cautioned that Britons will still be worse off. Responding to Osborne’s Summer Budget today, Harman said Labour would support the Chancellor in his efforts to raise the personal allowance to £11,000 and increase the 40p threshold to […]

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Budget: Govt to align pension input periods with tax year

The Government plans to align the period over which the amount of money saved into a pension is measured with the tax year. Under current rules, the pension input period against which the annual allowance is tested does not have to be aligned with the tax year, and in many cases is not. However, from […]

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Budget: Govt reveals where £70m of bank fines will be spent

The Government has revealed where it will spend £70m worth of bank fines over the next five years. Historically, excesses in FCA fine revenue were directed back to firms to reduce regulatory costs. But since April 2012 the fines have been passed directly to the Treasury instead. In 2014/15, FCA fines totalled £1.42bn, of which […]

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Budget: Govt extends pension tax relief cut

The Government has expanded its expected reduction to pensions tax relief for people earning less than £150,000. Originally the Government had indicated people earning over £150,000 would see their annual allowance tapered to a minimum of £10,000. This is to fund an increased inheritance tax threshold to £1m for couples. It was not clear how […]

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Budget: Govt confirms Pension Wise expansion

The Government has confirmed it will extend the Pension Wise guidance service to those aged 50 and above. In the Budget today, the Government also announced a further marketing drive to promote awareness of the service. Initially the Treasury said only people within six months of their 55th birthday could use Pension Wise. But last […]

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Budget: Govt delays secondary annuities reforms

The Government has delayed plans to introduce a secondary annuity market amid concerns about the impact rushing the reforms could have on savers. The reforms, which will allow people to cash in their annuity, were due to be implemented in 2016. However, the Treasury has confirmed this deadline has now been pushed back to 2017 […]

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Budget: Osborne increases personal allowance to £11,000

Chancellor George Osborne has increased the personal allowance to £11,000 from 2016/17. The change to the threshold goes beyond the original Conservatives plans for a personal allowance of £10,800 next year. The Government plans to raise the allowance to £12,500 in the term of the parliament. Osborne said: “We will now legislate so that the […]

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Budget: Govt to monitor cost of salary sacrifice schemes

The Government will “actively monitor” the impact of salary sacrifice schemes on tax receipts. In today’s Budget, the Government expresses concern over the growth of salary sacrifice schemes. The Budget document says: “Salary sacrifice arrangements can allow some employees and employers to reduce the income tax and National Insurance that they pay on remuneration. “They […]