AJ Bell lays the odds for UK post-Brexit reforms
By Kirsten Hastings, 1 Jul 16
With UK chancellor George Osborne having abandoned his plans to generate a budget surplus by 2020 following Brexit, AJ Bell senior analyst Tom Selby gives his odds on whether HM Treasury will adopt any of the six radical money saving options available to them and if the Pensions Bill will be delayed.
“Widely believed to be a potential frontrunner to fundamental pension tax relief reform, the Lifetime Isa remains in the gestation phase and crucial details have yet to be clarified about how it will work in practice.
“For example, we still don’t know whether contributions above £4,000 ($5,356, €4,823) a year that wouldn’t receive the 25% government match will be allowed.
“The Treasury has also yet to confirm whether borrowing will be permitted, or the criteria for accessing your pot penalty-free before age 60 expanded.
“Given these uncertainties, April 2017 now looks extremely ambitious as a launch date. On the other hand, any move to ditch a policy likely to prove popular with younger voters disillusioned by the Brexit vote would be politically risky.”
