Tax centre
Pre-Budget Report 2007
Pensions
Pension credit
The pension credit standard minimum guarantee will be uprated to £124 a week for single pensioners and £189 a week for couples in 2008/09.
Pension annuity reform
The Government has consulted with interested parties about the development of pension products that combine pension fund withdrawal with a guaranteed income. However, the Government has decided not to change the rules, because it says a change would increase the complexity and only affect a small number of people with large pension savings.
Pensions – spreading of contributions
The Finance Bill 2008 will contain legislation, effective from 9 October 2007, to prevent the ‘spreading rules’ for pension contribution tax relief being circumvented by routing payments through a new company.
Pensions – other changes
The inheritance of tax-relieved pension savings using scheme pensions or lifetime annuities will be subject to unauthorised payment tax charges and, where appropriate, inheritance tax. The measure is effective for surrenders of benefits after 9 October 2007 and for increases in pension rights attributable to the death of a member when the member dies after 5 April 2008.