Expert views on Budget 2016
By International Adviser, 17 Mar 16
Members of International Adviser’s Tax & Technical Panel give their views and insights on chancellor George Osborne’s latest budget announcement.
“The chancellor certainly kept us on our toes in the run up to the budget, with the possibility of major pensions changes mooted. In the end he followed the PM’s call to play it safe but still managed a surprise in the form of the Lifetime Isa.
“Given the challenges young people face, a saving product which encourages saving for a house deposit or retirement makes sense. However, there is a huge risk that the LIsa will encourage some under 40s to turn down the opportunity to be auto-enrolled into a workplace pension, even though that comes not only with the equivalent 25% Government bonus on personal contributions, but also with an extremely valuable employer contribution. Employers will not be allowed to pay into LIsa. The self-employed don’t benefit from an employer contribution so LIsa may suit them, and encourage earlier engagement with retirement savings.
“The big question remains, will the chancellor use a successful LIsa launch as the basis of introducing a far more radical Pension Isa?”
Tags: Budget | CGT | Tax Avoidance | UK Adviser
