Pension arrangements fail to escape Autumn Statement spotlight

Claire Carey, partner at Sackers, comments:

“Salary sacrifice has long been on HMRC’s radar, given the valuable NI savings available to those who enter into such arrangements. Today, the Chancellor announced that tax savings on salary sacrifice and benefits in kind will generally be axed. However, to the relief of many, salary sacrifice arrangements in respect of pension savings will be spared.

“However, pension arrangements have not completely escaped the Chancellor’s attention. From April 2017, the money purchase annual allowance, which comes into play when someone flexibly accesses their DC retirement savings, will be cut from £10,000 to £4,000. DC savers approaching and already in retirement will need to carefully consider how this latest potential curb on their available annual allowance might affect any planned future DC savings.”

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