The Chancellor announced plans to abolish the 55 per cent tax applied to UK pension pots upon the holder’s death. These changes will come into effect from April 2015.
The Treasury predicts the new policy will cost approximately £150m per year. Of course, until his Autumn Statement, we won’t know how he intends to pay for it.
The decision goes a lot further than the reduction that most people were expecting, and will come as a much needed piece of good news at the Conservative party conference.
Much of the conference has so far been dominated by the news that Mark Reckless is to follow Douglas Carswell in defecting to the UK Independence Party. He timed his announcement perfectly to cause maximum disruption to the party conference, and David Cameron is now under mounting pressure to calm the nerves of an anxious Conservative party amongst rumours of more defections to come.
Read the full article in The Independent.
Does the scheme just benefit the wealthy? What about those struggling to save towards retirement? Read more in the Financial Times.