In the lead up to the 2016 Budget on 16 March, there was considerable speculation in the press around potential changes to the tax relief provided on pension contributions. One of the other options considered was the possible introduction of ‘pension ISAs’. However, neither of these potential changes took place in practice.
Key changes from last week were;
The government is considering limiting the range of benefits that attract income tax and national insurance relief when provided as part of salary sacrifice schemes. However, pension scheme salary sacrifice won’t be affected.
As ever, we will continue to monitor the government’s proposals and consultations and will keep you updated.