The Chancellor of the Exchequer, Rachel Reeves, delivered her second Budget on Wednesday 26 November. With lots of speculation and rumours, most of the feared changes to private pensions did not materialise.
Tax-free cash remains unchanged, with the current Lump Sum Allowance remainng at £268,275.
There are no changes to Annual Allowances or rates of tax relief, or tax on pension income.
However, there will be changes for employers using salary sacrifice arrangements for employee pension contributions from 6 April 2029, which will limit the benefit of national insurance contribution savings to those sacrificing up to £2,000 of salary. Amounts up to this will continue to receive the full benefit of national insurance savings for the employee and employer. Any excess amount sacrificed will effectively become subject to national insurance contributions.
It was confirmed that Inheritance Tax (IHT) will apply to unused pension funds from 6 April 2027, as had been previousy announced. Legislation will be included in Finance Bill 2025-26. There will still be exemptions for transfers to spouses or civil partners, and for certain lump sums paid to charities. Death in service benefits payable from a registered pension scheme and dependant’s scheme pensions from a defined benefit arrangement, or from a collective money purchase arrangement, are also excluded and will not be in scope of IHT. To ease potential issues for those dealing with IHT, it was announced that personal representatives will be able to direct pension scheme administrators to withhold up to 50% of the taxable benefits for up to 15 months, and to pay the IHT due, in certain circumstances. It was also revealed that personal representatives will be discharged from liability for pensions discovered after they have received clearance for settling the IHT due on the estate, if HMRC are satisfied that they have made every effort to locate the deceased’s pensions.
You can read more about the Budget here: https://www.gov.uk/government/topical-events/budget-2025
Note that this information is based on our understanding of current and proposed legislation and HMRC practice, which is subject to change. InvestAcc does not provide advice of any kind. Individuals should speak to their professional advisers.
November 28th, 2025
The Minerva SIPP can invest in a wider range of assets including commercial property and land, on an individual or group basis. Any combination of permitted investments may be made within a Minerva SIPP including deposit accounts, DFM, open market platform/wrap accounts, stockbroker accounts and trustee investment plans, all held together within the same SIPP.
SIPP Lite is a lower cost option, for those that do not require multiple investment accounts, or access to commercial property and land at outset. SIPP Lite members are restricted to a maximum of one investment account, to run alongside the default SIPP bank account. This investment account could be another bank account or ONE of the following: stockbroker account, DFM, open market platform/wrap account or a trustee investment plan. For individuals that require additional investments at a later date, including commercial property and land, they can upgrade their SIPP Lite plan to a Minerva SIPP.
A Small Self-Administered Scheme (SSAS) is a type of UK registered pension scheme. Each SSAS is governed by its own trust deed and rules and is a separate legal entity to the sponsoring employer. The sponsoring employer establishes the SSAS and invites members to join. Any individual employed by the sponsoring employer (or a participating employer) may join the scheme and all members are appointed as trustees alongside the professional trustee. SSAS trustees have a very wide range of investment options, including the ability to make secured loans to the sponsoring employer of up to 50% of the net asset value of the scheme, subject to certain conditions.
We have been operating in these markets for over 20 years. The SSAS business was formed in 1997, and in 2003 we launched our flagship product, the Minerva SIPP. The range is completed by SIPP Lite, which has been available since July 2012.
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