In an article by Professional Paraplanner, London Tax Associate Christy Wilson discusses potential changes which may be announced at UK Autumn Budget later this year, including changes to the tax-free lump sum of up to £268,275 that can currently be withdrawn from a pension pot.
Professional Paraplanner reported that financial advisors have received an increasing number of calls from clients wanting to take out the 25 percent lump sum amount from their pension ahead of the Autumn Budget for fear of potential tax changes that will impact their financial planning and long-term goals. Christy noted that "pension-related areas are ones to which Labour is likely to look in order to raise revenue," including reducing the amount of cash that can be withdrawn tax-free from one's pension. "The Institute of Fiscal Studies highlighted that such a change would apply to money contributed to pensions according to the existing system meaning that this change could retrospectively impact pension planning," she said.
"Budget fear factor affecting advice calls," Professional Paraplanner, October 11, 2024
London
