As the country begins to digest Brexit, analysts continue to predict what may or may not happen in the wake of the vote.

Of course, no-one knows the Treasury’s next move, and until there is some political stability at the top it is impossible to second guess the financial path ahead. However, there are a number of potential changes which could be put in place to boost government coffers.

Under the so-called ‘pensions freedoms’ of 2015, individuals can choose to pass their pension pots on to loved ones tax-free as pensions no longer form part of a person’s estate for inheritance tax purposes. If someone older than 75 dies, their heirs pay income tax at the marginal rate and no tax charge applies if aged under 75 (subject to them having available lifetime allowance remaining).

Abolishing the death tax due on pensions may appear ‘generous’ if the UK faces economic difficulties although reversing this move would certainly prove unpopular.

Similarly, the tax relief on pensions for higher rate earners is another potential target. This is a political football which is bounced around before every Budget and Election. It continues to generate interest because it costs the government some £34billion a year – a useful sum for a potentially cash-strapped country.

Other economists suggest that the lifetime and annual allowances could be cut again although both have already faced substantial reductions in the last five years.

The yet to be launched Lifetime ISA could be delayed while the Treasury attempts to stabilise spending. Despite being less than nine months away from its launch date, key details involving contributions and withdrawals from the fund have yet to be clarified leaving some to assume the property ISA could be a casualty of Brexit – a further disappointment to young people likely to be the most disillusioned by current politics.

Are you making the most of current opportunities for tax-free savings before any changes come into play? For more information, please contact us on 020 7636 7006.