Tony Byrne, managing director of Wealth & Tax Management, has already begun the process with his personal pension.
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CHANCELLOR of the Exchequer Rachel Reeves has announced that Labour’s first budget will be on October 30. As Labour has pledged not to increase Income Tax, National Insurance or VAT for working people and has previously announced that Corporation Tax will not be increased, that still gives them a variety of options to tax us more heavily.
So Capital Gain Tax, Inheritance Tax and pensions are all likely to be taxed more.
Before the election, Labour stated that they would reintroduce the Lifetime Allowance if elected when the Conservatives announced that the Lifetime Allowance was to be abolished. Subsequently, Labour dropped it from their election manifesto.
However, I strongly suspect Labour will raid pensions again because there is an alleged £22 billion taxation shortfall.
Pensions are a soft target and previously Labour governments have hit pensions twice during the last Blair/Brown governments. IHT and CGT are unlikely to raise anywhere near as much taxation as pensions.
I have already started the process of transferring my SIPP (Self-Invested Personal Pension) into an overseas pension called a QROPS (Qualifying Recognised Overseas Pension Scheme). The pension scheme is based in Gibraltar.
The reason for doing this was because Gibraltar does not have a Lifetime Allowance and, being a tax haven, it has a friendly, welcoming attitude to entrepreneurs and high net worth individuals. They would be foolish to impose high taxes on pensions as it would create a financial drain on the country if they were to do so.
Needless to say, you need to take expert pensions advice because it is complicated and because every individual’s situation is different. You will also need tax advice from a specialist in this area of taxation. We can help you with all of this.
For advice on transferring your pension overseas, take advantage of a one-hour Discovery Meeting either at our offices or via a video conference call at our expense worth £270 to each of the first three readers who contact us before 30 September 2024. You know it makes sense. We offer a great cup of coffee too. Ring us on 01908 523740 or for free on 0800 980 4516 or email wealth@wealthandtax.co.uk and quote SEPTEMBER 2024 OFFER to book your free discovery meeting.
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RISK WARNING: The Financial Conduct Authority does not regulate tax planning. The information contained within this article is for guidance only and does not constitute advice which should be sought before taking any action or inaction. All information is based on our current understanding of taxation, legislation, regulations and case law in the current tax year. Any levels and bases of relief from taxation are subject to change. Tax treatment is based on individual circumstances and may be subject to change in the future. This article is based on my own observations and opinions. They do not represent the company’s views.
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