Sarah Bradford pulls apart the pension pronouncements, which included tackling pension fraud, the lifetime allowance and the state retirement pension.
Legislation is to be introduced to extend HMRC’s powers to refuse to register, and to de-register, pension schemes to master trusts that do not have authorisation from the Pensions Regulator under their new authorisation regime.
The powers will also be extended to pensions schemes with a dormant company as a sponsoring employer. The aim of this legislation is to make HMRC’s tax registration regime more effective at preventing fraudulent pension schemes. The measure will take effect from 6 April 2018.
Lifetime and annual allowances
The lifetime allowance, which places a cap on tax-relieved pension savings, is increased in line with the Consumer Prices Index to £1,030,000 for 2018/19. The lifetime allowance was previously reduced from £1,250,000 to £1,000,000 with effect from 6 April 2016.
No changes were announced to the pensions annual allowance, which remains at £40,000, or to the money purchase annual allowance, which remains at £4,000.
State retirement pensions
The basic state pension (payable to those achieved state pension age before 6 April 2016) is increased by 3% in line with the triple lock, rising by £3.65 per week from April 2018 from £122.30 per week to £125.95 per week.
The single-tier state pension (payable to those who reach state pension age on or after 6 April 2016) is also increase by 3% in line with the triple lock, rising by £4.80 per week from April 2018, from £159.55 to £164.25.