The key here is to take good financial advice and not “throw the baby out with the bathwater”. Some pensions arrangements are very valuable, especially defined benefit pensions, even after a tax charge so stopping your pension to avoid this tax is not necessarily the best thing to do.
In this Budget, the Chancellor has started raising taxes on the long road to strengthening the public finances. People from all across the wealth spectrum will start to suffer some degree of pain as a result. “Tax Day” later this month may enlighten us on what’s in store further down the road.
But just like a doctor treats bodily aches and pains, a good review of finances with a financial adviser could take the sting out of any potential additional tax pains or, at least, make them hurt a little less.
Les Cameron is head of technical at Prudential UK
