With the 26 Nov Budget in mind the Institute for Fiscal Studies (IFS), the UK’s leading independent economics research institute has published (13 Oct) a chapter from their 2025 ‘Green Budget’ titled: Options for tax increases
In it they say there is:
“A widespread expectation that tax rises will be the key feature of the Budget…. but such increases are not inevitable.”
We fundamentally disagree with the option being highlighted again by the IFS who say in the section ‘Taxation on pensions’
“Another feature of the system that is ripe for reform is the tax-free 25% offered on all pension withdrawals …… the current cap of £268,275 – which was introduced by the last Chancellor……could be cut. An IFS report from February 2023…….set out an option for a cap along the lines that was introduced, but with the example provided of a cap of £100,000.”
The impact such a reduction would have on Armed Forces retention and commitment has been highlighted by the Society on numerous occasions, including in the run up to the 2024 Autum Budget and more recently in this update following media speculation.
We are also supporting this Pension Tax Lock Petition and would encourage everyone to sign it – the Government need to understand the potential consequences of their decisions.
