In March, the UK government announced changes to the tax regime
surrounding pensions as part of the annual Budget.
In this piece, we take a deep dive into what these changes are,
who they affect, what employers should be doing in response and
ask: is this really a big deal?
What is changing?
Since 2006 there has been a concerted effort by the UK
government to encourage saving into private pensions. This has been
done through introducing favourable tax structures and of course
the pensions auto enrolment regime that HR professionals will be
familiar with.
The changes in the budget focus on the former, expanding the tax
benefits (and removing certain tax costs) associated with pension
contributions for high earners. The changes are in large part
motivated by particular issues in the UK's public health sector
where senior doctors retire early because of the limitations on the
pensions regime, particularly the lifetime allowance.
