News

Budget Update October 2024

Following on from the budget on Wednesday 30th October, please see below for a summary of changes that impact SSAS pension schemes – it is important to understand that this information is provided as a high level summary, and does not constitute financial or tax advice for our scheme Members.

What was announced?

Whilst Inheritance Tax (IHT) thresholds have stayed the same, and have been frozen until 2030, it has been announced that from 2027, pension savings will form part of a person’s estate for IHT planning purposes. This means that whilst assets in a SSAS are currently considered to be outside of a person’s estate, from 2027, this will not longer be the case.

What does this mean for pension savings?

It means that from 2027, assets held within a pension scheme will be considered as part of a Member Trustee’s Estate when they pass away. This is regardless of the age a scheme Member is at the time of death, unlike the income tax rules.

We strongly recommend that any scheme Member with assets over and above £325,000 inside AND outside their pension scheme seeks advice regarding inheritance planning, as we fully appreciate that many scheme Members will have opted for pension saving as part of their overall estate planning, and this new budget changes long standing plans for many.

If you have any specific matters you would like to discuss, please contact us at pensions@haywardsestini.com.

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