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Try it nowAutumn Budget 2024
The main announcements in relation to pensions were:
Tax paid on inherited pension to change from April 2027
The government announced several measures to reform Inheritance Tax (IHT) in this Budget.
As it stands at the moment, beneficiaries don’t pay inheritance tax on pension savings they will inherit. This is because your pension isn’t currently included in the calculations of your ‘estate’.
If the value of your ‘estate’ is over the tax-free threshold of £325,000, then your beneficiaries pay tax on anything above it. The threshold can be higher for some beneficiaries.
In the Autumn Budget, it was announced that the current tax-free threshold of £325,000 will remain the same until 2030.
It was also announced that from April 2027, pensions will be included in the calculations of the value of your estate. Because of this, they could be subject to IHT. This measure will only affect beneficiaries of pensions which haven’t yet been
claimed and any death benefits due.
Whilst this change will impact both Defined Contribution (DC) and Defined Benefit (DB) schemes, it is expected to impact unused DC funds more as funds used to provide a dependants’ scheme pension, common within DB schemes, will remain out of scope
of IHT.
The government are yet to confirm exactly how implementing the changes will work. We’ll provide more detail as we know more.
The State Pension to increase from April 2025
Pensioners will get a 4.1% boost to their State Pension from next year.
This is because the government will maintain the State Pension triple lock for the duration of this parliament.
The full new State Pension will increase to £230.30 a week (£11,975 a year) and the full, old basic State Pension will go up to £176.45 a week (£9,175 a year).
Tax-free overseas transfers to be reduced
Individuals who want to transfer their pension to an overseas pension provider, called a Qualifying Recognised Overseas Pension Schemes (QROPS), may have to pay a 25% tax charge unless an exclusion applies.
One of the exclusions to this charge was previously in relation to QROPS established in the European Economic Area (EEA) or Gibraltar.
The government have announced that from 30 October 2024 the exclusion in respect of the EEA or Gibraltar will no longer apply in order to address the risk of individuals receiving double tax-free allowances.
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.
