With political focus turning to the EU referendum, the furore surrounding the March budget seems to be a distant memory. Whilst plans to introduce further cuts to tax relief on pension contributions, or remove the tax free lump sum at retirement were shelved, it’s worth remembering two significant changes in pension rules still came into force on 6th April:
- A reduction in the Lifetime Allowance to £1 million.
- The introduction of a reduced Annual Allowance on pension contributions by high earners.
How long further reform to pension tax relief stays on the back burner remains to be seen but it’s widely expected in the industry that this hasn’t been forgotten and will be revisited during the course of this parliament.