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Pensions
PENSIONS
STATE PENSION
The basic state pension will increase by
£3.35 to £119.30 a week. The starting
rate for the new single tier pension will
be £155.65 per week and will start in
April 2016.
AUTOMATIC ENROLMENT
MINIMUM CONTRIBUTION
RATES
The government will delay the next
2 scheduled increases in automatic
enrolment minimum contribution rates
by 6 months each. This will align these
changes with the start of the tax year.
UPRATING OF PENSION
CREDIT
The single rate of the standard minimum
guarantee will rise in line with earnings
by £4.40 to £155.60 per week, and the
couple rate will rise by £6.70 to £237.55
per week.
The savings credit threshold will rise to
£133.82 for a single pensioner and to
£212.97 for a couple. This will reduce the
single rate of the savings credit maximum
by £1.75 to £13.07 and the couple rate by
£2.68 to £14.75.
PENSIONS TAX RELIEF
CONSULTATION
In Summer Budget 2015, a consultation
on the system of pensions tax relief was
launched. This process is ongoing and is
expected to be concluded and a response
published at Budget 2016.
SECONDARY MARKET FOR
ANNUITIES
The government will remove the barriers
to creating a secondary market for
annuities, allowing individuals to sell their
annuity income stream. There will be a
consultation document this December.
BRIDGING PENSIONS
Following the introduction of a single tier
pension from 6 April 2016, legislation will
be introduced in the Finance Bill 2016 to
enable the pension tax rules on bridging
pensions to be aligned with Department
for Work and Pensions legislation.
DEPENDANT SCHEME
PENSIONS
Legislation will be introduced in the
Finance Bill 2016 to simplify the test that
takes place when a dependant’s scheme
pension is payable.
VAT
SANITARY PRODUCTS
£15 million in VAT is currently collected
on the sale of sanitary products. EU rules
preclude the government from removing
this tax and so instead an annual fund will
be established over the life of the current
parliament from the VAT collected. This
fund will be donated to women’s charities.
SIXTH FORM COLLEGES
As part of the government’s one-off
restructuring of post-16 education and
training, sixth form colleges in England
will be given the opportunity to become
academies, allowing them to recover their
non-business VAT costs.
The sixth form colleges will have the option
of joining a multi academy trust if they
choose to.
NEW SINGLE
TIER PENSION
£155.65
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