Savings and Pensions
Individual Savings Accounts (ISA)
The investment limits for ISA have not changed since 2017/18: they are £20,000 for a standard adult ISA (within which £4,000 may be in a Lifetime ISA), and £9,000 for a Junior ISA or Child Trust Fund. These will now remain fixed until 5 April 2030.
Pension contributions (Table B)
In advance of the Budget, there was speculation that the Chancellor could raise significant tax revenues from pension schemes: she might restrict the tax relief on pension contributions or change the rules on drawing benefits, or impose Employer NIC on employer contributions to employees’ funds. On the other hand, this could also have discouraged pension saving and could have been seen as a tax on ‘working people’. In the event, she made no changes.
The maximum amount that can be withdrawn as a tax-free lump sum remains £268,275 unless the person is entitled to ‘protection’ in relation to the original introduction of the Lifetime Allowance or any of the subsequent reductions of the limit.
The only changes relating to pension funds were a specific change to the rules involving transfers of UK pension funds to other foreign arrangements, with effect from 30 October 2024, and the inclusion of unused funds and death benefits in the IHT estate on death from 6 April 2027, described in the IHT section below.