Despite the Chancellor's "u turn" last weekend on promised changes to pension contribution tax relief, he could still boost tax revenues by changing the way tax-free lump sums from pension funds can be taken, warns rural insurer NFU Mutual.
"It's been reported that the Chancellor won't be announcing changes to tax relief on pension contribution - but the Treasury still needs to refill its coffers," said Sean McCann, chartered financial planner at NFU Mutual.
Mr McCann went on: "One thing the Chancellor could do is restrict the tax-free sum people can currently take from their pension funds once they reach 55. In most cases people can take up to 25 per cent of their pension pot as a tax-free lump sum. This is a popular measure - especially for tenant farmers, who often use the lump sum to help buy a home for their retirement.
"Restricting this sum, either to a lower percentage of the pot, or to a maximum sum could mean farmers have to work longer before retiring and make it more difficult for them to hand over family farms to the next generation."
Market round-up
C&D Auction Marts Ltd had 5198 prime hoggs forward at their weekly sale in Longtown on Thursday that included 2000 Hill and North Country Cheviots. The firm also held its annual show and sale of Cheviot prime hoggs when 30 pens of 20 were presented for judging. The Hill Cheviot championship was awarded to Messrs Cartner, Blackwoodridge House for a pen that scaled 53kg apiece and realised £102, while the champion North Country Cheviots came from Messrs Douglas, Whitehope, Yarrow for 52kg hoggs that also went on to fetch £102.
Top prices on the day were £115 per head and 271p per kg, with the overall average levelling at 194.5p (+0.8p on the week).
Another good show of 3647 cast sheep saw heavy ewes sell to £144 for Texels and average £85.05 (+£4.13), while light ewes peaked at £82 for Blackfaces and levelled at £55.45 (+£1.42).Rams sold to £146 for a Texel and averaged £88.98.
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