I wasn’t expecting much pension news in the Autumn Statement.
After all, radical pension freedoms had already been announced in the Budget 2014, inheritability of pensions was announced at the Conservative Party Conference and the Taxation of Pensions Bill has revealed yet more detail. So no surprise, but still relief, that there is nothing major coming out of the Autumn Statement.
Unless, that is, your spouse or partner has bought a joint life annuity. In that case, you may take some comfort that income paid to you if you survive your spouse or partner will be free of income tax if they die before age 75. Do spare a thought for those whose loved ones have already died and will continue to have their annuity income taxed. Surely this is the unfairest pension rule of all?
The Autumn Statement also ratified some announcements already made, and dismissed plans for extending tax relief on personal pension contributions beyond age 75.
With the overhaul of Stamp Duty Land Tax, it’s worth noting that the Chancellor is changing the rules for residential property, rather than commercial property. SSASs and SIPPs, of course, generally do not purchase residential property and so will be unaffected.
Find out about the new pension rules coming into force next tax year at one of our free seminars.