The Autumn Budget

Hi. My name is Alistair McQueen, Head of Savings & Retirement at Aviva.

Budgets tend to be significant financial events, and this year’s Autumn Budget was no exception.

For our wealth customers, I’d suggest the word that maybe proceeded this year’s Budget, speculation, can now helpfully be replaced with the word stability. And this stability can help us plan for the financial future.

Why do I say stability? Well, the Budget included no changes to pensions tax relief; no changes to the pensions tax-free-lump-sum; no changes to the pensions annual allowance; no reintroduction of the pensions lifetime allowance; no changes to how national insurance relates to employer pension contributions; and no changes to ISAs. Stability.

Yes, there were changes in capital gains tax and in inheritance tax. These may have implications for some of our customers.

For capital gains tax, pensions and ISAs will continue to carry their exemption from this tax, but if your product is exposed to CGT, this tax is set to rise with immediate effect. For inheritance tax, from April 2027, private pensions wealth is to be included within an individual’s estate and will then become subject to inheritance tax from that day forward. Exactly how this inheritance tax change will work is subject to government consultation.

Now as always, there are many moving parts in any Budget, and different changes may have different implications for different people.

At Aviva, we’re committed to helping you plan for your financial future.