To discuss what this means for you and your business get in touch or speak to your usual Crowe contact.
The abolition of the lifetime allowance on pension savings from 6 April 2023, removes the potential 55% income tax charges. However, the 25% tax free allowance remains frozen at the current maximum of £268,275.
An increase in the annual allowance from £40,000 to £60,000 will also encourage workers to build up pension pots as they continue to work, without paying additional tax.
New apprenticeships targeted at the over-50s will refine existing skills programmes to make them more accessible to older workers, giving them the skills and support they need to find a recognisable path back into work. More detail is awaited: will targeted tax or NIC reliefs apply?
Employers will welcome additional childcare support.
They will need to consider how to communicate these changes to their employees and review how their talent pool can be expanded as a result. The pensions changes will tempt highly skilled employees to return to and stay in the workforce. They will also bring lower employer tax costs and compliance complexity in respect of globally mobile employees.
Consultations into the operation of share schemes (share incentive plans and save as you earn), the role they should play and how they can be simplified were also announced. This comes off the back of the tax-free limits for approved schemes being doubled to £60,000. We await detail on Returnerships and this.