The full Budget papers released by the Treasury showed the Government intends to consult on the matter and to implement the Financial Advice Market Review in full.
The details have been partly outlined in Treasury documents, just released, although it was not mentioned in George Osborne’s speech.
In other key announcements, the Government said it would:
• Consult on introducing a Pensions Advice Allowance to allow people before the age of 55 to withdraw up to £500 tax free from their defined contribution pension to redeem against the cost of financial advice.
• The exact age at which people can do this will be determined through consultation. This means that a basic rate taxpayer could save £100 on the cost of financial advice
• Increase the existing £150 Income Tax and National Insurance relief for employer-arranged pension advice to £500
The Budget papers stated: “The government welcomes the recommendations of the Financial Advice Market Review, which aims to support the provision of affordable and accessible advice for everyone, at all stages of their lives.
“FAMR was a joint review between the Financial Conduct Authority and Her Majesty’s Treasury, and its recommendations were published on 14 March. The government commits to implement all of the recommendations for which it is responsible.”