Treasury enjoys extra £400m pension tax windfall

Almost 50% more than expected

Hannah Godfrey
clock • 1 min read

The Treasury will net an extra £400m as a result of people paying tax on their retirement withdrawals, according to the Office for Budget Responsibility's (OBR) fiscal outlook.

The document, which was published alongside the Budget, revealed a significant upgrade in the estimated pension freedoms tax take for 2018/19. Based on the Spring Budget 2017 costings, which factored in a tax take of £900,000m in 2018/19, Monday's figures suggested a near 50% increase in revenue raised from the pension freedoms this year to £1.3bn, taking the grand total generated in tax by the policy to £5.5bn. AJ Bell senior analyst Tom Selby said: "The whopping £13bn cut in the OBR's borrowing forecast for this year wasn't the only windfall to land in the chancellor's pocket yester...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Retirement

Advisers warn market volatility will threaten retirement plans

Advisers warn market volatility will threaten retirement plans

More than half expect clients to postpone or change plans

Isabel Baxter
clock 26 March 2024 • 2 min read
Perfect timing: How to advise clients on the right time to retire

Perfect timing: How to advise clients on the right time to retire

Striking a balance between health, wealth and personality

Richard Hulbert
clock 05 February 2024 • 4 min read
Baillie Gifford: Enjoying later life without an income from work

Baillie Gifford: Enjoying later life without an income from work

The latest from PA’ Digital Working Lunch webinar series

Professional Adviser
clock 12 December 2023 • 2 min read