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Try it nowBudget update
Following on from the general election, the new government’s first Budget took place on 11 March 2020.
The Chancellor of the Exchequer, Rishi Sunak, delivered his first Budget in the House of Commons, announcing the government's tax and spending plans for the year ahead.
Although there had been rumours of potentially significant changes in pension tax relief in the run up to the Budget, the pension-related announcements were not as major as expected.
Changes were announced in the following areas:
Tapered Annual Allowance
The Budget saw an increase in the Tapered Annual Allowance (which reflected the Conservative manifesto pledge to review this area). From Monday 6 April the income threshold will be increased to £200,000, an increase of £90,000 from its current amount.
The new rule will affect those who have an ‘adjusted income’ above £240,000 - the £200,000 allowance plus the £40,000 Annual Allowance you can save into a pension.
However, the minimum level of Annual Allowance applying under the taper system reduces from £10,000 to £4,000, so some high earners will lose tax relief.
You can learn more on the Annual Allowance (including the tapered Annual Allowance) at Gov.uk/tax-on-your-private-pension/annual-allowance
Lifetime Allowance
The maximum amount you can save in a pension over a lifetime (Lifetime Allowance) will increase from £1,055,000 to £1,073,100 for the 2020/21 tax year.
Seeking feedback on the tax relief system
The Budget announced that there is to be a call for evidence about how tax relief applies under net pay arrangements. The alternative tax relief system, referred to as ‘relief at source’, takes contributions from income after tax, with the pension scheme reclaiming basic rate tax relief from HMRC.
Matt Riley
Manager
Matt joined Zedra Governance Limited (formerly PTL) in January 2008 having previously worked for Mercer Limited, Hazell Carr and Prudential.
As a Manager for the company's Birmingham Office, Matt’s responsibilities include working closely with Client Directors and individually liaising with Employers, Trustees and Members to ensure the smooth running of their pension schemes. Matt’s current portfolio of clients covers ongoing, paid-up and winding-up schemes. In addition, Matt has experience of schemes that have transferred or are in the process of transferring to the Pension Protection Fund and Financial Assistance Scheme. Matt also works closely with clients in relation to risk registers and internal controls.
Matt particularly enjoys resolving issues in a fair and pragmatic way ensuring that the right result is reached for the member or employer.
Sam Burden
Client Director
Sam Burden joined Zedra Governance (formerly PTL) in 2022. He is an Accredited Professional Pension Trustee (AMAPPT) and an Associate of the Pensions Management Institute (APMI)
Sam has more than 25 years’ experience in the pensions industry gained with WTW, KPMG, and Standard Life working with a wide range of pension schemes and sponsoring employers. His trustee appointments include DB, DC and hybrid pension schemes and he has experience of handling a broad range of projects relating to the management of pension schemes.
Beyond his pensions experience Sam is a former Birmingham City Councillor where he chaired the audit committee and a current charity trustee.
Payam Kazemian
Client Director
Payam Kazemian joined Zedra Governance Limited (formerly PTL Governance Limited) in 2021. He is an Accredited Professional Pension Trustee (AMAPPT) and an Associate of the Pensions Management Institute (APMI).
Payam has more than 17 years of experience in the pensions industry. Through his current role as a professional trustee, as well as previously as a pension’s de-risking and investment structuring expert at financial institutions including Goldman Sachs and Deutsche Bank, he has had overall responsibility for creating investment, de-risking, journey planning, and governance solutions for a wide range of UK DB pension schemes. He currently holds a number of board positions (as Chair of Trustees) and sole trustee in his professional trustee capacity. Payam has been involved with a number of pensions projects including pensions buy-in, pensions buy-out, GMP equalisation, investment strategy reviews, and dialogue with the pensions regulator. Payam looks to create and believes in a collaborative relationship between the sponsor, the trustee, and all other parties involved as this results in best member outcomes and helps deliver pragmatic solutions for scheme. Aside from his pensions experience, Payam holds a Ph.D. in Materials Science from the University of Cambridge.
