George Osborne will deliver the latest review into the country’s finances on Wednesday, with announcements expected on tax credits and pension tax relief among other subjects.
Matthew Hall, head of tax and partner at accountancy firm Wilkins Kennedy, said: “We already know that soon there will be no more coal being put on the fire (or at least in the power stations) and I find it hard to believe that ‘Ebenezer’ (Scrooge) will be full of seasonal gifts this year.
“With two budgets under his belt so far this year, and a commitment to deliver a £10bn surplus by 2020, this Autumn Statement is likely to be action-packed and barring any ghostly visits the night before, the Chancellor will stick to his plans.”
Mr Hall said there may be some insights on the Chancellor’s review, announced in the July Budget, of the idea to tax pensions like ISAs. But it may be avoided, he said, adding: “Walking in the shadows of such drastic recent pension reform, the Chancellor may elect to take more time.”
Old Mutual Wealth pensions technical expert Jon Greer said: “The way I see it, the spending review and Autumn statement is an opportunity for the Chancellor to set the scene on a few rolling items ahead of the budget in March 2016.
“Consumers should also see it as a signal to undertake a review of their finances, both ahead of the statement itself and ahead of the budget and tax year end in April 2016. We do not expect to see any significant announcements this time but then nobody was expecting that in March 2014 either.
“As well as funding ahead of the Autumn statement, consumers should also be looking at the previous years’ annual allowances that may have gone unused.”
Gareth James, head of technical resources at AJ Bell, said his firm wants to see the amount that can be contributed to a pension each year by people with no relevant earnings, currently £3,600, should be aligned with the Junior ISA allowance. He said it would encourage greater savings, particularly for children.
He said: “Aligning this with the JISA allowance to create a single, consistent children’s saving allowance across both JISAs and pensions would make it easier for parents and grandparents to understand how much they can invest. It would also enable those with income from sources other than traditional earnings to save more for their retirement.”
Tom McPhail Head of Retirement Policy at Hargreaves Lansdown, said plans for a secondary annuity market could again feature on Wednesday.
He said: “Having announced a delay to the secondary annuity market earlier this year, the Treasury and the FCA have been working hard to develop a framework to allow annuity holders access to the pension freedoms. They are working towards a launch in April 2017; it is possible we will see some output from the Treasury alongside the Autumn Statement.”
Tina Riches, national tax partner at Smith & Williamson’s had one clear wish for the Chancellor.
She said: “With the Autumn Statement coming up, we would benefit from some radical simplification or even a one-in-two-out policy on tax law.”
And she predicted: “Cuts in reliefs in respect of inheritance tax, pension contributions and interest on business borrowings could feature high on the Chancellor’s shortlist.”