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Pension confusion – you ain’t seen nothing yet!

Theresa May’s decision to call a snap General Election on June 8 has sent a few ripples across the financial planning world.

Large chunks have been removed from the Finance Bill which was due to introduce measures proposed in Chancellor Philip Hammond’s first Budget to the extent which saw it reduced from 762 pages to roughly 140!

The Bill has been trimmed to allow it to pass through Parliament before it is dissolved ahead of the election – with a number of ‘contentious’ measures which would have affected financial planning withdrawn.

The result is a little surreal, as well as confusing. One pension change (the reduction of the Money Purchase Annual Allowance from £10,000 to £4,000) was ‘not introduced‘, almost one month after pension companies were told to start applying it!

Potentially good news. But both financial advisers and clients should be aware this does not mean these measures will not be introduced at a later date – especially if,  the Conservatives are returned to power with a larger majority.

Innes Reid Associate Director James Keane said: “Political pragmatism always creates financial planning problems, but can also open up financial planning opportunities.”

To discuss the implications of the election on your financial planning, call the experts at Innes Reid on 01244 347583 or by email to info@innesreid.co.uk

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