According to the latest reports, the Government is set to scrap the planned cut to pension tax relief for higher earners.
The news comes following the resignation of the former Chancellor Sajid Javid, who had intended to include a cut in tax relief on pension contributions for individuals earning £50,000 or higher per year from 40 per cent to 20 per cent.
However, the new Chancellor Rishi Sunak has now put the cut on hold, with some experts stating that the changes to the system would have been complex and could have caused issues in the short term.
With the Budget set to take place on 11 March, despite some concerns that the resignation of Sajid Javid would cause issues, many people are now looking at what changes will be announced.
The Government announced the return of the Pension Schemes Bill in the Queen’s Speech in December 2019, with the policy including new rules for pensions dashboards. The Department for Work and Pensions (DWP) originally planned to launch the first dashboards during 2019 but the idea was not officially given the green light until late last year.
Minsters confirmed via the Queen’s Speech that the dashboards will provide “plain information” and that the legislation will include “new powers to compel pension schemes to provide accurate information to consumers”.
Individuals will be able to access all the information about their pension and potential retirement income from any device, whereas currently, they can only look at different pension pots separately.
To find out more about how Kirk Newsholme Financial Planning can help, please contact Richard Leonard at Richard.Leonard@knfp.co.uk or by calling 0113 204 4215.