Autumn Budget 2024

What the Budget means for pensions and investments

Helping you navigate the changes to pensions and investments

If you want to know how the Autumn Budget impacts pensions and investments, you're in the right place. We've untangled the changes to work out what the key takeaways are and what they mean for pensions and investments. In this article, we've outlined each change to pensions and investments in simple terms, so you have a better idea of where you stand.

The key takeaways

On 30 October, we heard from Chancellor Rachel Reeves, outlining the Government’s first Autumn Budget Statement. It set out the Government’s spending priorities, including additional investment in the NHS.

For wealth customers, we believe the Budget brings stability. There are no changes to pension tax relief, the tax-free lump sum, the annual allowance, national insurance related to employer pension contributions, or ISAs. This stability may help people when thinking about planning for their future financial goals.

That said, the Budget does announce changes to capital gains tax and inheritance tax, which will affect some of our customers and those at different stages in their financial journeys.

We’ve picked out a few important points below and what they could mean for you and your money. As always, speak to your adviser for help making significant financial decisions.

Aviva is committed to supporting all of our customers in planning their financial futures.

The details of the changes to pensions and investments

Capital Gains Tax (CGT)

  • Capital gains tax on investments sold outside of ISAs (such as those held in a General Investment Account) or other tax shelters, will rise from 10 to 18% for basic-rate tax payers, and from 20 to 24% for higher-rate taxpayers, meaning people will pay more tax when selling their investments. This brings the rates in-line with those for residential property, which are not rising.
  • The tax-free allowance has been lowered, meaning the amount of profit you can make before paying tax, from £6,000 to £3,000. 

Inheritance tax (IHT) and estate planning

  • The amount you can pass on without paying inheritance tax stays at £325,000 (plus an extra £175,000 if you leave your home to your children or grandchildren) until 2030.
  • But, from 2027, any unused pension savings when you pass away will be counted as part of your estate for inheritance tax. Currently, pensions are exempt. This means that your pension savings may be taxed when you pass away.

ISAs

  • The maximum you can save or invest in an ISA (£20,000) and Junior ISA (£9,000) will remain the same until 2030.

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Log in to your account to see your pension and/or investment details and manage any changes. 

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