On 30 October the Chancellor of the Exchequer delivered the government’s Autumn Budget for 2024. The main announcements in relation to pensions were:

The State Pension to increase from April 2025

It was confirmed that the government will maintain the State Pension triple lock for the duration of this parliament.  This means that there will be an increase of 4.1% to the State Pension from next year.

Inheritance tax and pensions

It was announced that from 6 April 2027 most unused pension funds and lump sum death benefits will be included within the value of a person’s estate for Inheritance Tax purposes.  These changes will not take effect until 6 April 2027 and there is currently a government consultation underway looking at the detail of this change, its implementation and operation.

The Uniper Group Trustee and Company will be monitoring the position and providing updates to members in due course, as the details are confirmed.  Please note, neither the Trustee nor Company are authorised to provide you with financial advice.  If you feel you require financial advice you can find an advisor in your area by looking at: www.unbiased.co.uk

The full consultation can also be found here: Technical consultation - Inheritance Tax on pensions: liability, reporting and payment - GOV.UK

Overseas transfer charge

Individuals who choose to transfer their pension to an overseas pension provider, called a Qualifying Recognised Overseas Pension Schemes (QROPS), may have to pay a 25% tax charge unless an exclusion applies.  From 30 October 2024 the exclusion in respect of the EEA or Gibraltar will no longer apply.