With the budget due on the 11th of March, the area of pensions is expected to be very much in the spotlight. With the Government now having a healthy majority there are the numbers to actually make some policy decisions.
Three areas are being reviewed namely:
The ongoing situation with auto enrolment ; net pay v relief at source and the effect on low earners.
Potential changes to the lifetime allowance; highlighted by the Doctors in the NHS.
Finally, a potential complete overall of the pension tax relief system. There is the opportunity of a review of pensions taxation; which could eradicate /reduce the implications of some of the anomalies in pension tax relief and potentially boost the Treasury coffers or at least keep it cost neutral. The majority in parliament lends itself to making some coherent decisions. The last significant pension tax relief reform was in 2006. It is time and need for this to be improved.
Rob Weaver is an author for accountingcpd. To see his courses, click here.