The Autumn Budget was delivered on 22 November and contained few surprises for those in the pensions industry. Many of the pensions-related announcements had been previously confirmed by the Government. The key changes announced by Philip Hammond were as follows:
- The lifetime allowance will be increased in line with CPI from April 2018, rising to £1,030,000 for the 2018/19 tax year.
- The basic state pension and the new state pension will both be increased by 3% in April 2018, with the basic state pension rising by £3.65 per week and the full new state pension rising by £4.80 per week.
- The Government will include a power in the Finance Bill 2018 for HMRC to register and de-register unauthorised master trust scheme and schemes with a dormant company as a sponsoring employer.
- With effect from April 2019, the Government will "modernise" tax relief for employer premiums paid into life assurance products or some overseas pension schemes. This means that the relief will be extended to cover policies where an employee nominates an individual or registered charity to as a beneficiary.
- The Pensions Regulator is going to "clarify" guidance on how trustees can include investment in assets with long-term investment horizons (such as venture capital, infrastructure and other illiquid assets) in a diverse portfolio. This proposal forms part of a package of measures aimed at supporting long-term investment.
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