'Gordon Brown stole my Pension'.

seven-day-weekend

I think I may have asked this question before but can't remember what, if any, answers I had.

I have a friend who says her self-employed husband doesn't have a Pension because 'Gordon Brown stole it'.

When I asked her what she meant she said,'well, you know....Gordon Brown stole it, everyone has had problems'.

I didn't like to enquire any further.

So...has anyone any idea what she could mean, or has she just gone into Daily Mail mode?

dunstonh

So...has anyone any idea what she could mean, or has she just gone into daily Mail mode?

She has gone into Daily Mail mode.

Back around 1999 (excuse me if my years are out by 1 or 2), GB changed the tax credit. In simple terms, pensions (and PEPs and non taxpayers) used to be able to claim back the tax paid on the dividend with equities. However, he put an end to that. It obviously hit the annual returns but only by 0.x% a year average. It did not prevent pensions (or PEPs or Non taxpayers) claiming back the interest payment on fixed interest/bond funds). So, for the average balanced or cautious portfolio in a pension, it was a hit but one that "individually" doesnt make a significant difference. Collectively (as in all pensions), the hit was rather large. It saved the treasury around £5 billion a year.

The bigger hit was the reduction in rebates in contracting out. That was a true stealth tax. However, your friend's husband is self employed so doesnt get SERPS/S2P so you cant take away something you never had.

seven-day-weekend

Thanks Dunstonh. My friend and her husband have a bit of a wierd relationship anyway. She does not know how much he earns and she often goes away for the weekend without even telling him where she is going.:eek:

I think he probably just doesn't want her to know about his pension.;)