Welcome to the News Section of the Website. This section will be updated as new information arrives.

November 2017 Budget: what it means for pensions

The Autumn Budget, announced on 22 November 2017, avoided any substantial changes to pensions.

The fear that the Chancellor was plotting a raid on pensions proved to be unfounded,with no changes to pensions tax relief. Indeed, there was very little in this Budget about pensions at all, but there are a few points you might be interested in.

State Pension
The basic state pension will rise by 3% in April 2018. Annual increases in the state pension are covered by the ‘triple lock guarantee’, which ensures that it rises each year by either September’s Consumer Prices Index (CPI) inflation figure, average wage growth or 2.5% – whichever is highest. This year, the CPI of 3% in September 2017 dictated the increase to the state pension.

Lifetime Allowance
The lifetime allowance for pension savings – the total value of pension benefits you can receive in your lifetime without having to pay a tax charge – will also increase in line with CPI, rising from £1 million to £1.03 million in April 2018.

Income tax
The personal allowance – the amount you can earn before you pay income tax – will rise from £11,500 to £11,850 in line with inflation in April 2018. The higher-rate tax threshold will also increase for people living in England, Wales and Northern Ireland, from £45,000 to £46,350.

Capital gains tax, savings and dividend taxes
No changes to capital gains tax or taxes on savings or dividends, and no changes to inheritance tax either.

For more information on the Budget, please click here.

Pensions News 37 & Annual Funding Statement

Pensions News 37 and the Annual Funding Statement are now available.

In this Pensions News issue: Plan accounts summary, Investment changes, Jargon buster, New Coats CEO and more.

View these documents online at our new My Coats Pension site (you will need to register if it’s your first visit):

You can also view them online in the member-only section (you will need the secure area password): click here

Budget 2017: what it means for pensions

Philip Hammond’s Budget, announced on 9 March 2017, did not introduce any major unexpected changes to pensions or income tax.

As expected, the personal allowance is rising from £10,000 to £11,500 from 6 April 2017 – reducing an ordinary basic rate taxpayers annual income tax bill by £100.

The Government recently held a consultation on Pension Scams (this term covers any fraudulent activity designed to deny people full enjoyment of their pension savings), and advised that the outcome of this is yet to be published. (The Pensions Advisory Service has produced an online tool for people who fear they have been approached by pension scammers. If you’re concerned about pension scams, you can view this tool by clicking here.)

We previously advised that the Government had introduced the Money Purchase Annual Allowance (MPAA) in 2015; this restricts future defined contribution pension saving to £10,000 a year once a person has exercised the new ‘freedom and choice’ flexibilities.  This allowance will be reduced to £4,000 a year from 6 April 2017.

There are also changes being introduced in relation to overseas transfers; these will be subject to a 25% charge in certain circumstances, and will also continue to fall under the scope of the UK tax regime in the 5 years following the transfer.  Members with deferred pension rights who are under normal retirement age have a right to request a transfer value.  For the avoidance of doubt, pensions already in payment cannot be transferred out of the scheme.

For more information on the Budget, please click here.

Coats announces 2016 full year results

Coats has announced its financial results for the year ended 31 December 2016.

To view the announcement, please go to the news section of the website

2017 Pensioner Payment Dates

The January 2017 payment was made on 20 December 2016. A full list of the pay dates for 2017 is detailed below:

  • January – Tuesday 20 December
  • February – Wednesday 1 February
  • March – Wednesday 1 March
  • April – Friday 31 March
  • May – Friday 28 April
  • June – Thursday 1 June
  • July – Friday 30 June
  • August – Tuesday 1 August
  • September – Friday 1 September
  • October – Friday 29 September
  • November – Wednesday 1 November
  • December – Friday 1 December