Exemption from Income Tax for employer-provided pensions advice
07 December 2016
A clause introduces a new income tax exemption to cover the first £500 worth of pensions advice provided to an employee (including former and prospective employees) in a tax year. The measure will take effect from 6 April 2017.
Geographical extent – The changes extend to all four nations of the UK. The draft legislation details the legislative amendments required for both Great Britain and Northern Ireland.
The new exemption will allow advice not only on pensions, but also on the general financial and tax issues relating to pensions, allowing individuals to make more informed decisions about saving for their retirement.
The changes replace existing provisions which limited the exemption solely to pensions advice and was capped at £150 per employee per year.
If you have any questions about this change, or comments on the legislation, please contact the Employment Income Policy Team by email: firstname.lastname@example.org.