UK Pensions Briefing: Budget October 2024

What's changed?

• Inheritance Tax (IHT) payable on unused DC pots and lump sum death benefits from DB schemes.
• Gibraltar and EEA exemption removed from overseas transfer charge.
• Employers' NICs increased from 13.1 per cent to 15 per cent; reduction in threshold from £9,100 to £5,000.

What's staying the same?

• State pension triple lock maintained.
• IHT nil-rate band frozen at £325,000.
• Annual allowance unchanged at £60,000.
• 25 per cent tax free cash unchanged.
• Tax relief on contributions maintained at savers' marginal rates.
• Freeze on income tax thresholds remains until April 2028.

As usual in the run-up to a financial statement from the Government, there were many pensions rumours circulating before the Autumn Budget on October 30, 2024 (Budget Day). Tax-free lump sums, tax relief on members' contributions and the level of the annual allowance were all seen as possible targets for the Chancellor. In the event, none of these speculative