Autumn Budget 2021: Pensions and IHT largely untouched by chancellor

Net pay review

Julia Bahr
clock • 3 min read

Chancellor Rishi Sunak largely resisted the temptation to tinker with pension and inheritance taxes to fund his spending plans in his Autumn Budget on Wednesday.

Prior to announcing the Autumn Budget, Sunak indicated he would fund spending pledges through tax rises. Experts expected inheritance tax (IHT) to be a likely target. IHT is largely paid on death and can therefore not be avoided unlike other taxes, which experts often say makes it a good candidate for a potential tax rise. A flat rate for pensions tax relief has been often rumoured over the past few years, while the pensions lifetime annual allowance has been chopped frequently in the last decade. However, the nil-rate band hasn't increased since 2009 and sits at £325,000, with a 40% ...

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