The Carbon Compass: monthly news insight

Pensions, ISAs and Trusts: Key Developments

July has brought several important developments across pensions, tax-efficient savings and trust administration, as the Government continues to reshape the financial planning landscape.

A New Era for Workplace Pensions

The Government has published its roadmap for major workplace pension reforms, with a focus on improving outcomes for savers.

Central to the proposals is a new Value for Money framework, which will assess workplace pension schemes based on investment performance, service and costs. Underperforming schemes may be required to improve or consolidate, with larger schemes expected to begin publishing assessments from 2028.

The Government has also outlined principles for Guided Retirement, designed to provide greater support to pension savers as they approach retirement and help simplify what can often be a complex decision-making process

A New ISA for First-Time Buyers

A consultation has been launched on a new First-Time Buyer ISA, intended to replace the Lifetime ISA for future savers.

The proposed ISA would be available to first-time buyers aged 18 and over, with no upper age limit, and would provide a Government bonus when purchasing a first home without a withdrawal penalty. Both Cash and Stocks & Shares versions are being considered.

Existing Lifetime ISA holders would be able to retain their accounts, while further details on contribution limits and Government bonuses are expected at a future fiscal event.

ISA Changes from April 2027

Further changes to ISAs are planned from April 2027, including a new £12,000 annual Cash ISA limit for individuals under 65, while the overall £20,000 ISA allowance will remain unchanged.

Additional restrictions are also planned around holding cash and cash-like investments within non-Cash ISAs. Draft legislation and further guidance are expected later this year.

Changes to Trust Registration

New rules affecting the Trust Registration Service (TRS) took effect from 30 June 2026. These introduce additional exemptions for certain trusts, including some deeds of variation, co-ownership arrangements and qualifying low-value trusts.

At the same time, registration requirements have been extended for some non-UK trusts holding UK property, making it important that trustees understand whether their arrangements remain within the scope of the rules.

As the financial landscape continues to evolve, staying informed can help ensure your plans remain effective and appropriate. If you would like to discuss how any of these developments may affect your financial planning, please don't hesitate to get in touch with the team at Carbon Financial Partners.

The value of investments and the income derived from them can fall as well as rise. You may not get back what you invest. This communication is for general information only and is not intended to be individual advice. It represents our understanding of law and HM Revenue & Customs practice. You are recommended to seek competent professional advice before taking any action. Tax and Estate Planning Services are not regulated by the Financial Conduct Authority. Tax treatment depends on the individual circumstances of each client and may be subject to change in the future.