The Finance Act 2017 received Royal Assent on 27 April 2017.
Due to the snap decision to call a General Election on 8 June 2017, the Finance Bill was shortened. Two areas of draft pensions tax legislation were taken out of the Finance Bill and do not, therefore, appear in the Finance Act.
- The reduction in the money purchase annual allowance from £10,000 to £4,000 from 6 April 2017, affecting those who have flexibly accessed pension savings.
- The income tax exemption for employer-arranged pension advice (which changes the scope of the advice that can be provided and increases the amount from £150 to £500 from 6 April 2017).
Our communication suggests the course of action that trustees and employers may wish to take until further clarity is obtained.
The Pension Schemes Act also received Royal Assent. This act introduces the new framework for master trusts.