Autumn statement: a quiet one for the pensions industry
Thursday 4th December 2014
The Chancellor gave his Autumn Statement on 3 December. In contrast to the 2014 Budget when the Chancellor announced that the restrictions on how members with money purchase benefits may take those benefits were to be abolished, the Autumn Statement was a quiet one for the pensions industry.
The pensions announcements were:
- From April 2015, where an annuitant dies before age 75 any resulting dependant’s annuity will not be subject to income tax. A joint life annuity may also be passed on to any beneficiary with the same tax treatment. This will bring annuities in line with unused drawdown benefits.
- The basic state pension payable from April 2015 will increase by 2.5%.
Terry Saeedi, partner and head of the Gordons pensions team said, “The pensions industry will be heaving a sigh of relief that the Autumn Statement contained no major pensions announcements. The Budget 2014 flexibilities which come into force in April 2015 heralded a major change to the way members may take their money purchase benefits and the industry faces a lot of work to be ready for then.”