Revealed: Changes To Pensions Imposed In The Budget

Revealed: Changes To Pensions Imposed In The Budget
Underwater by Andy Deitsch. Why?

As many pensions and tax efficient investments experts nervously awaited the Chancellor’s Budget, here’s a summary showing how the changes could affect you.

Self-Styled Pension Expert Jeremy Clarkson Shares His Views On Pensions Below

A Summary Of The Changes To Pensions And Tax Efficient Investments

In recent weeks, the pensions industry and the tax efficient investments industry were both concerned about detrimental changes that could be announced in the Chancellor’s 2017 Budget.  Here’s a round-up of what’s new.

What Changed In Pensions?

Nothing!!!

It’s surprised many, but absolutely nothing changed. 

What’s more, not even a consultation on any sort of pension reform was announced.

It’s left the pensions industry somewhat perplexed and undecided as to whether this is good or bad news.  Whilst many believed this was a missed opportunity, just as many were relieved and even pleased to see no changes, given the financial uncertainties surrounding the Brexit talks.

What Changed In Tax Efficient Investments?

Almost nothing!!!

The chancellor outlined various measures to support research and development and technological innovation.

The only change was a surprise doubling of the EIS investment limit for ‘knowledge-intensive’ companies. 

It’ll mean the amount you can invest goes up from £1 million to £2 million, providing any amount over £1 million is invested in one or more knowledge-intensive companies.  Your full investment could receive a potential 30 per cent tax relief of £600,000.

While the Chancellor was vocal on EIS investments, he was surprisingly quiet on VCTs, which was left to a paper published online.

Here’s a useful article with a lot more detail about the Tax Efficient Investments changes.

In short, there are no material changes to either pensions or tax efficient investments announced in the 2017 Budget.  But as both of these tax-privileged areas cost the Exchequer billions every year, there could be some detrimental moves at some point in the future.

A Lighter Hearted Look At Pensions

Prior to the Budget, Jeremy Clarkson made a comment about driverless cars, saying:

I drove a car the other day which has a claim of autonomous capability and twice in the space of 50 miles on the M4 it made a mistake, a huge mistake, which could have resulted in death.

In response to this, as the Chancellor announced Government support for autonomous vehicles, he said:

...not the first time you’ve been snubbed by Hammond and May.

In a bombshell exposé, Clarkson is, in fact, a self-styled pension expert, as you can see in this video.

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