Big statements were made in the Budget, but it was notable for the silence on rumoured increased to capital gains tax and inheritance tax reform. Hardly any mention at all was made on these two taxes beyond freezing the respective exemption thresholds (with the inheritance tax threshold now remaining at £325,000 since April 2009).

Whilst the Chancellor backing down was almost inevitable following Lockdown 3, the rumours will not go away and all eyes will now be on a future Budget, possibly in the Autumn, for any increases as measures are taken to try to peg back the huge deficit.

Robert Pullen, partner Blick Rothenberg

Decision to freeze lifetime pension allowance from 2022 a punitive step

“The decision to freeze the lifetime pension allowance from 2022 appears to be a punitive step which punishes today’s workers (our pension savers), whilst existing pensioners appear to remain protected via the pensions ‘triple lock’.

Whilst the absolute tax saving from this measure would appear quite limited, it could have a real impact on long-term pension savings and may actually encourage those people (e.g., NHS consultants) on attractive defined benefit pension schemes to retire earlier than they would otherwise do, so that they can avoid the punitive 25% surcharge tax associated with pension savings in excess of the lifetime allowance threshold.

If the Government is serious about ensuring that the tax burden is shared equitably across the population, it should have let the lifetime and annual pension allowances increase in line with inflation, whilst removing the triple lock which guarantees above inflation pension rises for existing pensioners.

Robert Slater, Director global mobility Blick Rothenberg.