MSE News: Budget 2012 - £3.3 billion tax blow for pensioners

SandraScarlett

Just found this on the HMCR site:

This allowance reduces where the individual’s income is above the income limit (£24,000 for 2011-12, £25,400 for 2012-13) by £1 for every £2 of income above the limit until they reach the level of the personal allowance for those aged under 65, or from 2013-14, the level of the personal allowance for those born after 5 April 1948.

There is no mention of a limit from 2013-2014?

xx

molley

#grannytax is trending bigtime on Twitter

fluffnutter

Where's the thread for moaning about Osborne's total inability to add up?

How can two people earning £49K each, i.e. a household income of £98K, keep their entire child benefit whilst households with one earner earning £60K lose it all? It's not about whether you agree with those on higher incomes losing child benefit; there's a crazy anomaly where you can earn 50% more than your neighbours and still keep a benefit they lose!

Durrr....

coolkat54

as usual pensioners who worked all their lives and then retire on the state pension plus a small extra pension and get no other benifit are going to have to economise again, and why do the younger people think we dont need the same amount of money to live, we still have to pay mortgages, heating, council tax, water rates etc. Pity we didnt know this when we started out and we could now be living in compartive luxury if we had never gone to work at all , and lived on benefit.

bigsheep

I'm 65 in a few months time. I can't work out how this is going to affect me. Can anyone help? (And I thought Osborne said he was simplifying things).

*MF*

bigsheep wrote: »

I'm 65 in a few months time. I can't work out how this is going to affect me. Can anyone help? (And I thought Osborne said he was simplifying things).

The tax free allowance for this tax year for you will be £10,500 - and it will then be frozen at that level - unless in due course the tax free allowance for everyone rises above that level.

*MF*

Just a thought ...

Having already taken his lump sum of £2.7m TAX FREE - Fred Goodwin, on his annual pension of £340,000, and as a result of the drop from 50p to 45p, now has an extra £17,000 a year more in his pocket.

That £17,000, in one fell swoop is about 3 times what the old age pension amounts to.

Fair, Mr Osborne? You sure?

Desthemoaner_2

Is it me or there a conspiracy to take away and/or reduce the value of the benefits which the generation born from 1945 have paid for nearly all their working lives?

It seems that just as we reach retirement, from 2005 onwards, all the institutions that we paid into started to collapse, i.e. Pension funds, the NHS is all but gone and now we are to be taxed even more because our generation was frugal and tried to live with in its means.

I accept that I am fortunate that I have been able to work hard and pay my way all my life without claiming benefits, so why do I feel that I and my generation are being 'screwed'?

Risby

I find it sad that a Conservative chancellor, a millionaire amongst millionaires, sees fit to claw back money from pensioners in their 70 and 80s and so on. Many of them rely on the increased allowance to bring that little extra income. However he tries to cover it up, we face a cut back in our meagre incomes already not keeping pace with inflation. He's driving folks away.

Consumerist

I suspect that this change for pensioners is likely to come back and bite the Tories in the bum. I remember Labour's tax simplification by abolishing the 10p tax band and the cost to them at the following local elections.

I don't think the Tories have heard the last of this by a long shot.