The following changes were announced to pensions:
Pensions tax relief consultation
- Following consultation on the system of pensions tax relief ths summer. The government is considering the responses received and will publish its response at Budget 2016.
Dependant Scheme Pensions
- Legislation will be introduced to simplify the test that takes place when a Dependant’s Scheme Pension is payable. (Finance Bill 2016)
- Following the introduction of a single tier pension from 6 April 2016, legislation will be introduced to enable the pension tax rules on bridging pensions to be aligned with Department for Work and Pensions legislation.
Automatic enrolment minimum contribution rates
- The government will delay the next two scheduled increases in automatic enrolment minimum contribution rates by 6 months each, to align these changes with the start of the tax year.
Secondary market for annuities
- The government will remove the barriers to creating a secondary market for annuities, allowing individuals to sell their annuity income stream. The government will set out further details on this measure, including the framework for the consumer protection package, in its consultation response this December. (Finance Bill 2017)