Business
Pension 25% tax-free cash under attack: falls to just 14% in Hunt stealth raid | Personal Finance | Finance
Hunt has quietly set a cap on the amount of total tax-free cash pensioners can withdraw and this will cause increasing damage to savers through a process known as fiscal drag. This happens when tax thresholds are frozen while asset values rise. It’s a common stealth tax trick.
Pension provider and financial adviser Quilter has warned the new cap is unlikely to rise now that it’s been set and this could shrink the value of the 25 percent tax-free cash for those with larger pension pots.
They risk losing thousands of pounds in tax to HM Revenue & Customs if they fail to take action.
In his March budget, Hunt abolished the pensions lifetime allowance, which capped the total amount savers can hold in their pension pots at £1,073,100, with a brutal 55 percent charge on savings on top of that.
The aim was to encourage NHS doctors to work on later in life, as many had retired early to escape the penalty.
It drew criticism from Labour who claimed Hunt was handing a tax break to the super rich, but critics failed to notice that the Chancellor had sneakily set a new maximum cap of £268,275 on the tax-free cash element for everyone.
Roddy Munro, head of tax and pensions specialists at Quilter, said this may only affect a small number of savers today but could have “major knock-on consequences” for pension planning further down the line. “More and more savers will see their tax-free cash shrink as their pension grows.”
That £268,275 figure is 25 percent of the former lifetime allowance threshold of £1,073,100. As the value of larger pension pots continues to rise, savers will escape the lifetime allowance surcharge, as it’s been abandoned. However, the frozen cap means they can no longer take 25 percent of their pension tax free.
After five years, someone whose pension is worth £1.07m today could lose nearly £37,000 of available tax-free cash as the value of their pot rises while the cap doesn’t.
Their 25 percent tax-free cash will have fallen to 19 percent of their pot in that time. After a decade it will be worth just 14 percent, at a cost of almost £70,000 in extra tax.
This could hit around 1.6million pension savers in the next three years but their numbers will rise over time. These will be primarily those in defined benefit “final salary” company schemes, who may now face a tough decision.
One option is to withdraw the tax-free cash while still within that £268,275 threshold.
However, withdrawing money from a pension before it’s needed isn’t ideal. Pensions offer attractive inheritance tax benefits, as they are not subject to IHT.
Once the money is withdrawn it will fall into the savers’ estate and may become liable to IHT when they die.
Another drawback is that once tax-free cash is withdrawn, any future growth on the money becomes taxable.
Munro suggested that pensioners consider using their tax-free £20,000 Isa allowance to shield ongoing returns.
There’s another option that has fallen out of favour but now has added benefits.
READ MORE: Brilliant pensions tax break saves thousands but millions don’t know it exists
Munro says: “Offshore insurance bonds are back in vogue following these reforms. They can help to control the tax payable, simplify tax reporting and sit within a trust for IHT-planning purposes.”
Offshore bonds are tax compliant if done properly but they can be complex so it may be worth talking to an independent financial adviser to see how they could work for you.
Pensions tax could become an even bigger issue if Labour wins the next election, because it has vowed to restore the lifetime allowance.
Plus there is always the danger that the Treasury will scrap tax-free pension cash altogether, although that would be a highly unpopular move.
Tax-free cash is a great benefit and many use it to clear their mortgage and other debts, or fund big-ticket items such as a new car, home improvements or dream holiday.
Even those with more modest pension pots need to plan their tax-free withdrawals carefully, said Dean Butler, managing director for retail at Standard Life. “Savers have to decide whether to take it all in one go or split withdrawals into chunks.”
Taking smaller, regular chunks over the years can save tax compared to taking the whole lot in one go. “Once you have used your tax-free cash, any further withdrawals will be added to your income that year may be subject to income tax.”
Tax-free cash is a brilliant perk. No wonder politicians can’t keep their hands off it.
Mumbai:
Stock market benchmark indices Sensex and Nifty rebounded sharply in morning trade on Wednesday after heavy drubbing in the previous session amid buying in blue-chip bank stocks and a firm trend in Asian peers.
The 30-share BSE benchmark gauge Sensex bounced back in early trade and later jumped 835.2 points or 1.02 per cent to 82,021.64. The NSE Nifty surged 262.3 points or 1.06 per cent to 24,946.20.
From the Sensex firms, Sun Pharma, Bajaj Finance, UltraTech Cement, Mahindra & Mahindra, Bajaj Finserv, Tech Mahindra, HDFC Bank and Tata Motors were the biggest gainers.
IndusInd Bank emerged as the only laggard.
Moody’s Ratings said on Wednesday, India is well-positioned to deal with the negative effects of US tariffs and global trade disruptions as domestic growth drivers and low dependence on exports anchor the economy.
In a note on India, the agency said government initiatives to boost private consumption, expand manufacturing capacity and increase infrastructure spending will help offset the weakening outlook for global demand.
In Asian markets, South Korea’s Kospi, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng were trading in the positive territory while Japan’s Nikkei 225 index quoted lower.
US markets ended lower on Tuesday.
Global oil benchmark Brent crude jumped 1.62 per cent to USD 66.44 a barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 10,016.10 crore on Tuesday, according to exchange data.
Retreating from early highs, the 30-share BSE Sensex tanked 872.98 points or 1.06 per cent to settle at 81,186.44 on Tuesday. The Nifty tumbled 261.55 points or 1.05 per cent to 24,683.90.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
Business
Piccadily Becomes The 1st Indian Alcobev Company To Adapt NFC Technology To Combat Counterfeiting
New Delhi, Delhi, India – Business Wire India
In a pioneering move to safeguard consumers and reinforce trust in premium Indian spirits, Piccadily Agro Industries Limited has become the first Indian alco-bev company to implement ForgeStop’s cutting-edge anti-counterfeit smart label technology for its acclaimed Indri Single Malt.
With counterfeiting rampant in India – where it’s said that more Scotch is consumed than Scotland even produces – Piccadily has taken a bold and proactive step. By integrating NFC-enabled smart labels into its packaging, the company is setting a new benchmark in authenticity and transparency, investing significantly to ensure consumers receive only genuine, original products, reinforcing trust in premium Indian spirits.
ForgeStop InfoTap Labels on Piccadily products utilize EM Microelectronic echo-V chips with 128bit AES encryption and dynamically changing tokens – giving them bank level security and making them virtually impossible to fake. They also feature tag-tamper detection – alerting a consumer if the bottle seal has ever been broken – this prevents bottle re-use, a major issue with Alcohol counterfeiting that is difficult to combat with other technologies. Its platform creates a unique digital twin of every product at the moment of production and secures the product until it’s enjoyed by the customer. The software allows for app-free authentication and provides batch level product information – making it the most user-friendly anti-counterfeit technology available. This technology can be connected to the blockchain generating an immutable product journey – securing supply chains.
Unlike static technologies such as QR codes or holograms, this NFC tap and verify experience allows customers to simply tap their smartphones to the bottle to instantly confirm its authenticity and view batch-level information.
“As a brand committed to authenticity and quality, we’re proud to be the first Indian single malt brand to take this bold step,” said Praveen Malviya, CEO (IMFL), Piccadily Agro Industries Limited. “Counterfeit alcohol is a serious issue in India and globally. With ForgeStop’s smart technology, our customers can enjoy Indri with the confidence that what’s in the bottle is exactly what we crafted.”
“We’re proud to partner with Piccadily Distilleries, a globally recognized brand leading the way in product integrity. With ForgeStop’s smart label technology, consumers can instantly verify authenticity and access product information with a simple tap-no app required. It’s a seamless blend of security and brand storytelling,” said Terry Katz, CEO of ForgeStop.
As per the TRACIT (Transnational Alliance to Combat Illicit Trade) September 2023 report on India, a significant share of alcohol sold in India is counterfeit-well above the global average-and the problem is escalating rapidly. Counterfeit alcohol not only harms brands but also poses serious risks to consumer health.
With this first-of-its-kind initiative, Piccadily is elevating the standards of transparency, safety, and innovation in the Indian spirits industry-paving the way for a more secure and connected future for whisky lovers.
*Source- Source (TRACIT Report on India)
Source (OECD Illicit Trade Report)
Stock Ticker: (PICCADIL | 530305 | INE546C01010)
About Piccadilly Agro Industries Limited (PAIL)
Piccadilly Agro Industries Limited (PAIL) is a publicly listed company on the Bombay Stock Exchange (BSE: PICAGRO). The company operates primarily in two strategic business segments: Distillery and Sugar. Its manufacturing facility is located in Indri, Haryana, covers 168 acres and is equipped with advanced technology for producing a diverse range of products, including Malt, Extra Neutral Alcohol (ENA), Ethanol, and White Crystal Sugar.
Piccadilly Agro Industries Limited has established itself as a key player in the alcoholic beverages industry, particularly renowned for its expertise in malt spirits. The company boasts a robust portfolio that includes premium expressions of Indri single malt whisky, blended malt whisky brands and Camikara, premium sugarcane juice aged rum.
In 2022, Piccadilly Agro Industries Limited made a significant mark with the launch of ‘Indri’ its flagship single malt whisky brand, aimed at catering to discerning consumers who appreciate quality and craftsmanship in spirits. By focusing on premiumization strategies and leveraging its technical capabilities, the company has successfully positioned itself as a leader in the Indian single malt whisky market by becoming the ‘fastest growing single malt whisky brand’ in 2024.
Website: www.piccadily.com
About ForgeStop
ForgeStop is a connected product technology company that helps brands deliver engaging, trusted product experiences while protecting against counterfeiting, supply chain fraud, and lost consumer trust. Its smart label platform enables interactive product experiences that protect brands and engage buyers.
Website: www.forgestop.com
Media Contact Details
Nazish Khan, Avian WE, [email protected], +91-9538385162
Abhishek Haryson, Avian WE, [email protected], +91-9891356547
Quick Reads
Summary is AI generated, newsroom reviewed.
Filing ITR is crucial for salaried employee, business owner and freelancer.
But do keep in mind the deadlines for various categories of taxpayers.
Filing your ITR on time saves you from late fees, interest, and scrutiny notices
New Delhi:
Filing your Income Tax Return (ITR) is an annual obligation for every eligible Indian taxpayer. It not only ensures compliance with the law but also facilitates access to various financial services like loans, visas and credit cards. An ITR is essentially a declaration of your income, deductions and taxes paid to the Income Tax Department of India. Whether you’re a salaried employee, a business owner, or a freelancer, timely ITR filing is crucial.
Who Needs To File An ITR?
Individuals or entities whose gross total income exceeds the basic exemption limit must file an ITR. For FY 2024-25 (AY 2025-26), the exemption limits under the new tax regime are as mentioned on the Income Tax Department’s website are:
- Rs 3 lakh for individuals
- Rs 3 lakh for senior citizens (60-79 years)
- Rs 5 lakh for super senior citizens (80 years and above)
In the Union Budget 2025-26, the government announced zero tax on income up to Rs 12 lakh. The zero tax will only be applicable to individuals opting for the new tax regime. However, you still need to file an income tax return (ITR), even if your taxable salary is less than Rs 12 lakh. Zero tax is payable due to a tax rebate available under Section 87A of the Income Tax Act, 1961.
ITR must be filed by an individual to claim the tax rebate under Section 87A.
Key ITR Filing Deadlines for FY 2024-25 (AY 2025-26)
| Category of taxpayer | Deadline |
| Individual Salaried Employees / Non-Audit Cases | July 31, 2025 This includes salaried individuals, freelancers, and professionals not subject to tax audit. |
| Businesses Requiring Audit | October 31, 2025 If your business turnover exceeds Rs 1 crore (or Rs 10 crore in certain digital transaction cases), a tax audit is mandatory. |
| Transfer Pricing Cases (International/Specified Domestic Transactions) | November 30, 2025 Applicable for entities involved in cross-border or specified domestic transactions requiring a transfer pricing report (Form 3CEB). |
| Belated or Revised Return | December 31, 2025 |
Filing your ITR on time saves you from late fees, interest, and scrutiny notices. With the Income Tax Department’s e-filing portal, the process has become simpler than ever. Keep your PAN, Aadhaar, bank statements, Form 16, and investment proofs ready to avoid last-minute hassle.
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