Autumn Statement 2016: Good and bad rabbits

Other ‘good bunnies’ included a ban on letting agents’ fees and plans to tackle pension scammers.

You may be surprised that the Chancellor left higher rate tax relief on pension contributions alone. But Moneywise users will be relieved that the state pension triple lock will remain in place for the remainder of this parliament, ensuring that pensioners receive an annual increase in income equivalent to whichever is greatest - inflation, the increase in earnings, or 2.5%

According to our poll, this was top of your wish list for the Autumn statement.

However, many savers (and their advisers) will welcome a pretty uneventful Autumn Statement, having already been dealing this tax year with:

 

The negatives included another hike in insurance premium tax, which is likely to be passed on to consumers.

Plus, Chancellor Philip Hammond’s raid on salary will hit many professionals who receive work-place perks. The tax and employer National Insurance advantages of salary sacrifice schemes will be removed from April 2017. This will mean that employees swapping salary for benefits will pay the same tax as the vast majority of individuals who buy them out of their post-tax income.

The main pensions bombshell was the announcement of a consultation on reducing the Money Purchase Annual Allowance, the amount retirement savers are able to pay into their pension once they have accessed their savings, from £10,000 to £4,000 next April

Finally, a key statement from a pretty uneventful Autumn statement related to the scrapping of the Spring Budget. In Mr Hammond’s words: "So the spring Budget in a few months will be the final spring Budget. Starting in autumn 2017, Britain will have an autumn Budget, announcing tax changes well in advance of the start of the tax year. From 2018 there will be a Spring Statement, responding to the forecast from the OBR, but no major fiscal event."