The first Budget from a Labour government since March 2010, and the first ever from a female Chancellor, proved to be the defining event that had been widely anticipated. From the moment in late July when Rachel Reeves unveiled her famous “£22 billion black hole” and announced means-testing for the winter fuel payment, it was clear her Budget premiere would be a challenging one for both the government and the population of the UK.
In the event, the Chancellor delivered tax increases amounting to £41 billion by 2029/30. By far the largest element of this was the expected rise in employer’s national insurance contributions (NICs).
Other significant tax increases included higher capital gains tax rates, increases in stamp duty and a future reduction in inheritance tax business and agricultural reliefs.
One surprise of UK Budget 2024 however, is the potential impact on anybody who holds a UK pension.
Up until now, UK pensions have been sheltered against inheritance tax, however this will now be changing. Unused pension funds and death benefits payable from a pension will be brought into a person’s estate for IHT purposes from 6 April 2027.
Looking forwards, how does this affect you and what are your options? Below is the HMRC Technical Consultation paper.
As with all issues of UK inheritance tax legislation, which the former chancellor Roy Jenkins once famously described as “a tax paid by those who distrust their heirs more than they dislike the revenue”, there are always options; put simply you can…
1. Spend it.
2. Gift it.
3. Protect against it.
Each option needs to be explored and planned for, however since there are, from a financial planning perspective, 2 basic concerns for most people: living too long or dying too soon.
Now, more than ever there is a need for unbiased, fee based, long term financial advice.
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At Blackden Financial we have been advising our clients in Switzerland for the past two decades on just such decisions, so for a no obligation meeting call, +41 22 755 0800, by e mail info@blackdenfinancial.com or complete our Contact Form here
One of our team will contact you and arrange a suitable time to discuss how our service can work for you, and how to get the ball rolling.