Latest Blogs
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Tilley: Rebooting the FOS makes sense
I’ve written before about the lack of coherence in the UK’s pension complaints landscape and it remains a source of real frustration for those of us working in the sector.
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Lisa Webster: Pension age uncertainty lingers on
We’ve known for many years that normal minimum pension age, NMPA it's known, is going up.
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Tilley: Are we asking too much of pension savers?
Working in UK pensions, I’ve always accepted that the system evolves. Fiscal pressures change, demographics shift, and governments recalibrate policy objectives. But even allowing for that, the pace and volume of legislative change in the pensions space over the last few years feels unprecedented, and in my view increasingly problematic.
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Lisa Webster: Beware IHT and pensions double taxation
One of the most disliked aspects of bringing pensions into the estate for inheritance tax (IHT) purposes from 6 April 2027 is the double taxation that will occur when the member dies on or after their 75th birthday.
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Lisa Webster: Should tax-free cash always be taken?
Since the Lifetime Allowance was abolished and replaced with the Lump Sum Allowance (LSA) and lump sum and death benefit allowance (LSDBA), we have seen an increase in SIPP members who want to take drawdown only – foregoing the right to take the associated pension commencement lump sum (PCLS).
Popular News
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SPP elects Hymans Robertson’s Cooper as president
The Society of Pension Professionals (SPP) has elected Calum Cooper, partner & head of pension policy innovation at Hymans Robertson, as its next president for a two-year term which began on 1 June.
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Pension VfM framework must be for savers: SPP
The Society of Pension Professionals (SPP) has urged the Government’s proposed pension Value for Money framework to be directed to help savers, not just trustees, regulators and governance bodies.
Angela Byrne has been appointed as CEO of Standard Life’s pension and savings business.
The Chancellor announced in the Budget that the freeze on inheritance tax thresholds will be extended for a further year to 2030-31.
By then the government will rake in a predicted £14.5bn per year from the tax.
IHT receipts are forecast to raise £9bn in 2025/26, a 4.5% increase from last year with receipts expected to continue to increase over the forecast period.
Receipts will continue to climb, driven by rising house and equity prices and the impact of the polices announced at the Autumn Budget 2024, reaching £14.5bn in 2030/31.
Relative to the OBR’s March forecast, receipts are expected to be £0.8bn lower by 2029/30 due to lower in-year outturn which is only partially offset by higher forecast equity prices.
Simon Martin, head of UK technical services at Utmost Wealth Solutions, said: “Inheritance tax receipts are set to increase from last year and over the forecast period as frozen thresholds, rising asset prices, a tightening of the regime at the Autumn 2024 Budget and extending the freeze on IHT free allowances combine to drive increasing collections for the Treasury.
“It sets the scene for continued demand for professional advice as high-net-worth clients look to understand how they may be impacted.”
Rachael Griffin, tax and financial planning expert at Quilter, said: “Inheritance tax is one of the UK’s most hated taxes. What was once a tax on only the wealthiest families will increasingly impact those with even relatively modest estates, who after a decade of frozen thresholds alongside rising house prices, will be snagged by the tax. Add to that the significant changes coming in April 2027, when pensions will be drawn into taxable estates, and the government looks set to cash in on an ever-expanding pool of taxpayers.”
She pointed out that alongside the freeze on thresholds, inheritance tax free allowances have also been frozen until 2030-31.
Ms Griffin said: “While they won’t be getting any more generous, maximising every available allowance will be vital for families looking to ensure they pass on as much of their wealth as possible, while leaving as little as possible in the hands of the taxman.”
The government will put a cap on salary sacrifice on pensions to save around £4.7bn, it was revealed in the Budget.
The Budget rumours in recent weeks have sparked a record tax year so far for the number of people paying into SIPPs, stocks and shares ISAs, cash ISAs, JISAs and LISAs from Hargreaves Lansdown.
Retirees are living longer than they ever expected – and their finances may not be keeping pace, according to new research.
HMRC has agreed to exempt pension administration professionals from new requirements requiring ‘tax advisers’ who interact with HMRC on behalf of clients to register with HMRC and meet new minimum standards from 1 April 2026.