Budgets and Acts

Each year the Chancellor delivers a pre-budget report (referred to as the Autumn Statement nowadays) which is then followed by his Budget in March.

Budgets

2016 Autumn Statement

  • Income tax
  • Money purchase annual allowance
  • Pension scams
  • Salary exchange
  • Foreign pensions
  • Insurance premium tax
  • Life insurance policy part surrenders and part assignments
  • ISA

2016 Budget Summary

  • Income tax – personal allowance increase
  • Lifetime ISA – announcement
  • ISA – overall maximum contribution increase
  • Help to save – initiative for low incomes
  • Annual allowance – confirmation
  • Technical amendments to support pension flexibility
  • Dependant scheme pension – authorised limit calculations
  • Bridging pensions
  • Pension dashboard
  • Pensions and inheritance tax
  • Financial advice market review – employer arranged pensions advice
  • Salary exchange – government review
  • Class 2 NI contributions – abolished from April 2018
  • Strengthening the incentive to save – consultation on pension tax relief

2015 July Budget Summary

  • Personal allowances
  • Increase in the Inheritance Tax threshold
  • Reduction in annual allowance - taper on high incomes and the alignment of PIPs
  • Consultation on pension tax relief
  • Taxation of lump sum death benefits
  • Lifetime allowance - reducing to £1 million
  • Salary exchange - government to monitor its use
  • Pension transfers - consultation
  • Pension Wise - extending access to the over 50s
  • Secondary market for annuities

2015 Autumn Statement

  • Basic state pension - increased rate
  • New state pension - starting rate
  • Automatic enrolment - minimum contribution increases
  • Pension tax relief - consultation published before next Budget
  • IHT and undrawn pension funds
  • Secondary market for annuities

2015 Budget

  • Personal allowances
  • Traded annuities – consultation
  • Decrease in the lifetime allowance
  • Joint Life and guaranteed term annuities
  • Independent advice paid for by an employer

 2014 Autumn Statement

  • Personal allowances
  • Joint Life annuities – taxation of beneficiaries income
  • Tax relief on pension contributions – unavailable on contributions for over 75s
  • State pensions

2014 Budget

  • Personal allowances
  • Increase in maximum drawdown limit
  • Increase in the limit for triviality and 'stranded pots'
  • Reduction in the minimum income requirement (MIR) for flexible drawdown
  • Pensions liberation
  • Pensioner savings bonds

The government will be consulting on:

  • Ability to take all defined contribution pension savings as a lump sum at retirement
  • Financial guidance at retirement
  • Increase in the minimum pension age
  • Pension contributions after age 75

 

2013Autumn Statement

  • Pension drawdown – GAD rates remain unaltered
  • State pensions – age increases; confirmation of basic state pension and voluntary NI contributions
  • Lifetime allowance - individual protection
  • Personal allowances
  • Rates and Allowances - Tax and tax credit rates and thresholds for 2014-15

Budget Summary 2013

  • Personal allowances
  • State pensions – new state pension to commence from April 2016
  • Lifetime allowance - individual protection
  • Lifetime allowance - primary and enhanced protection
  • The Pensions Regulator - new objective
  • Pension Drawdown - increase in max GAD from 100% to 120%
  • Residential property in SIPPs and SSASs – consultation

2012 Autumn Statement

  • Reduction of annual allowance – reduce to £40,000 from 6 April 2014
  • Reduction of lifetime allowance - reduce to £1.25million from 6 April 2014
  • Increase in GAD limits
  • Consultation on deficit recovery plans
  • Other consultation - on the tax policies announced at Budget 2012
  • Rates and Allowances - Tax and tax credit rates and thresholds for 2013-14

2012 Budget Summary

  • Tax rates – additional rate reducing from 50% to 45% from 6 April 2013
  • Personal allowances
  • State pensions - confirmed that the State Pension will become a flat rate for future pensioners
  • Child benefit - new income tax charge will apply to families receiving Child Benefit
  • Pension contributions for a spouse
  • Employer asset backed pension contributions - limit tax relief available to employers
  • Lifetime allowance - fixed protection
  • Annual allowance –‘scheme pays’ rules
  • Qualifying Recognised Overseas Pension Schemes - new conditions to qualify as a QROPS
  • Qualifying life assurance policies – introduction of an annual limit of £3,600
  • Cluster polices – new rules

2011 Budget Summary

  • The restriction of tax relief through reduced annual allowance
  • Removing the need to buy an annuity by age 75
  • 'Disguised Remuneration' restrictions which effectively end the tax attractions of Employer Financed Retirement Benefit Schemes
  • The reduction of the lifetime allowance from 6 April 2012.
  • New state pension – end of contracting out for defined benefit schemes

2010 June Budget

  • Personal allowance - basic rate tax limit increasing so that higher rate taxpayers don't benefit from the increase.
  • Basic state pension - triple lock from 6 April 2011
  • The requirement to buy an annuity by age 75 will be removed from 6 April 2011.
  • Annual allowance – reduction proposed the anti-forestalling regime currently in place is unaffected.

2010 Budget Summary

  • Personal allowance
  • Tapering of tax relief - anti-forestalling measures
  • Reduction of personal allowances for those earning £100,000 or more from April 2010
  • Increase of the annual ISA allowance to £10,200 to all borrowers from April 2010.
  • Standard lifetime allowance and annual allowance will rise to £1.8 million and £255,000 respectively
  • Small lump sums rules to be extended to personal pension

2009 Budget Summary

  • Income Tax changes
  • Limiting tax relief for high income individuals
  • Anti-forestalling
  • Pension Credit - capital disregard

2009 Pre-Budget Report

  • National Insurance contributions increased
  • Anti-forestalling extended
  • Consultation on the restriction of tax relief from 6 April 2011
  • Tax on short service refund lump sums increased
  • Auto-enrolment contributions re-phased
  • Basic State Pension

2008 Budget

  • Personal Income Tax and NI contributions
  • Capital Gains Tax
  • Inheritance Tax
  • Investments
  • Business tax
  • Pensions
  • Tax tables facts and figures and NI

2008 Pre Budget Report

  • Personal allowance
  • Rate of income tax
  • National insurance contributions
  • Lifetime allowance
  • Annual allowance

 2007 Pre-Budget Report

  • Inheriting tax-relieved pension savings
  • Spreading of tax relief for pension contributions
  • Inheritance Tax and Alternatively Secured Pension
  • Scheme investments
  • Tax-free lump sums
  • Inheritance tax on overseas pension savings
  • State Second Pension

Acts

Some Acts are deemed so important that they merit their own article.

Pensions Act 2008

  • Abolition of safeguarded rights
  • Revaluation of accrued benefits for deferred members under a final salary scheme
  • Pension Protection Fund (PPF) and pension sharing

Automatic enrolment

  • Qualifying earnings
  • Automatic enrolment schemes
  • Qualifying scheme and quality requirement
  • Deduction of contributions
  • Right to opt out/In
  • Penalties

 

Finance Act 2008

  • Pre A-Day protection of tax-free cash
  • Additional authorised payments
  • Inheriting tax-relieved pension savings
  • Benefit Crystallisation Event 3 - increasing a scheme pension
  • Investment-regulated pension schemes (occupational pension schemes only)
  • Employer contributions

Finance Act 2007

  • Alternatively secured pensions
  • Pension term assurance
  • Who can establish a personal pension scheme
  • Transfers and enhanced protection
  • Transitional protection
  • Ill-health retirement

 

 

Last updated: 16 Mar 2016

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