The Chancellor’s windfall from better-than-expected borrowing forecasts meant that he did not have to cut back pension tax relief in this Budget.
Here’s our summary of the proposed changes with links to Treasury documents if you would like more detail.
The Personal Allowance the amount you earn before you have to start paying income tax will increase by a further £650 in April 2019 to £12,500. The amount people will have to earn before they pay tax at 40% will increase from £46,350 to £50,000 in April 2019.
The Scottish Parliament will set their own rates and bands for Scotland in its Budget due on 12 December.
The lifetime allowance for pensions will increase from £1,030,000 to £1,055,000 for 2019/20.
4.43 of HM Treasury - Budget 2018
The FCA will publish a discussion paper by the end of 2018 to explore how effectively the UK’s existing fund regime enables investment in patient capital. This will accompany the ongoing work of HM Treasury’s Asset Management Taskforce to explore the feasibility of a new long-term asset fund.
The Department for Work and Pensions will consult in 2019 on the function of the pensions charge cap to ensure that it does not unduly restrict the use of performance fees within default pension schemes, while maintaining member protections.
The FCA will consult by the end of 2018 on updating the permitted links framework to allow unit-linked pension funds to invest in an appropriate range of patient capital assets.
5.51 of HM Treasury - Budget 2018 and HM Treasury - Regulations to ban pensions cold calling - consultation response
The government has published a response to its consultation on cold calling alongside the Budget and will shortly be implementing legislation to make pensions cold calling illegal.
The DWP will consult later this year on the detailed design for the Pensions Dashboard and on how an industry-led approach could harness innovation while protecting consumers. DWP will work closely with the pensions industry and financial technology firms.
This winter, DWP will publish a paper setting out the government’s approach to increasing pension participation and savings persistency among the self-employed. This follows the 2017 review of automatic enrolment and will focus on expanding evidence through a programme of targeted interventions and partnerships.
The adult ISA annual subscription limit for 2019-20 will remain unchanged at £20,000.
The junior ISA annual subscription limit for 2019-20 will be uprated in line with CPI to £4,368.
The lifetime ISA annual subscription limit for 2019-20 will remain unchanged at £4,000.