9th December 2014

Scottish Widows: 2014 Autumn Statement Summary

Recently The Chancellor of the Exchequer, George Osborne, delivered the 2014 Autumn Statement.

You can now access our detailed summary of the Statement, highlighting the key issues that may affect you and your clients.  

2014 Autumn statement summary

Some of the highlights include:

• The Chancellor confirmed the abolition of the 55% tax charge on pension death benefits and on joint life or guaranteed term annuities.
• ISAs will retain their tax-free status when passed on to a spouse or civil partner following death. Following the significant increase to ISA subscription limits earlier this year, the annual limit rises by a further £240 to £15,240 on 6 April 2015.
• On the inheritance tax front, the government will not now introduce a single settlement nil-rate band following consultation launched after Budget 2014.
• A number of other changes have emerged piecemeal under the banner of 'Freedom and Choice in Pensions' since the March Budget:
• Flexi-access drawdown (FAD) - All new drawdown plans taken out from 6 April 2015 will be flexi-access drawdown, allowing unrestricted access to income.
• Capped drawdown - No new capped drawdown post 5 April 2015; existing plans retain standard annual allowance where income remains in GAD limits.
• Money Purchase Annual Allowance (MPAA) - Anti-avoidance measure introduced to prevent abuse of the new flexibility, set at £10,000 a year from 6 April 2015 and applies where benefits are taken flexibly.

We’ll be in touch in the coming weeks with our in-depth analysis of the planning opportunities arising from the 2014 Autumn Statement. In the meantime you can read our retirement planning guides or visit the adviser hub for the latest insight.

If you have any questions about the announcement please contact your account manager.

Budget