It was predicted that UK Chancellor, Jeremy Hunt, might announce a significant reduction in Inheritance tax, which could benefit affluent UK citizens and even encourage them to vote Conservative in the coming elections.

Unfortunately, there was no mention of Inheritance tax concessions.

This means that expats born in the UK but living abroad, would see their children pay inheritance tax. This brings about the importance of financial planning and consulting with a financial advisor, to ensure that a financial portfolio is as tax-efficient as possible. This means finding the right solutions to protect wealth and mitigate tax.

Furthermore, LTA or Lifetime Allowance is to be abolished removing limits for retirement savings. This means that there is no longer a limit to the amount of retirement savings an individual can have before extra taxation is implemented.

“LTA Abolition – The government will legislate in the Autumn Finance Bill 2023 to remove the Lifetime Allowance. The measure will clarify the taxation of lump sums and lump sum death benefits, and the application of protections, as well as the tax treatment for overseas pensions, transitional arrangements, and reporting requirements. This will take effect from 6 April 2024.”

This could encourage increased tax-efficient retirement savings for individuals and encourage older individuals to return to work and increase contributions to their retirement savings.

The Budget speech provides an opportunity for investors to up their retirement savings, and to move their wealth into tax-efficient solutions to avoid the ‘seeming noose around the neck’ inheritance tax law.

If you are unsure about the effects of the budget on your investments or need advice on moving your portfolio, it is advisable to chat with an experienced financial advisor.