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Telegraph - 25% Under threat.
Comments
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The easiest target to me would be the relief for higher rate tax payers on the way in. System is not automated at present so saves money that way and the tax payer could still retain 20% relief.0
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The easiest target to me would be the relief for higher rate tax payers on the way in. System is not automated at present so saves money that way and the tax payer could still retain 20% relief.
Which gets quite hard for occupational pensions. You would need to remove the relief on employer contributions as well, otherwise this would be easy to get around.
Then you need to decide how to handle final salary schemes, particularly unfunded ones. I suspect if they did this then plenty of "normal hard-working folk" such as teachers would suddenly become higher rate tax payers and wouldn't like that very much.0 -
grey_gym_sock wrote: »there is no war on pensions. you're just imagining it.
Actually, rather than imagining it, I'm experiencing it first hand, finance act by finance act.
I've always put a lot into pensions, but I'm now considering scaling back next tax year, taking the up front tax hit (wave byebye to around half) and then getting the money as far away from HMG's spiteful and ever-changing regulations as I can get it.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
plenty of "normal hard-working folk" such as teachers would suddenly become higher rate tax payers and wouldn't like that very much.
As a teacher's pension puts them well on the way to being a millionaire, why shouldn't they be paying a level of tax that reflects this?I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
There have been scaremongers on this since 1988 when personal pensions first came out.
Yet here we are 26 years later and its still there. Indeed, rather than it being restricted or going away, all the legislation changes since 2006 have actually increased the amount people can get from pensions as a lump sum.
Are you sure? I got home this week to a letter telling me that the maximum pension pot that I can have while still keeping my tax benefits is now going to be £1.25m, down from £1.5m.
In practice this means that I'll restrict my pot to that size (less, frankly, to make sure I don't go over and lose all additional benefits), which will cut the size of the 25% withdrawal commensurately.
The number of reasons not to invest in a pension here in the UK, but instead to put money into territories who I trust more, seems to grow each year.0 -
Are you sure? I got home this week to a letter telling me that the maximum pension pot that I can have while still keeping my tax benefits is now going to be £1.25m, down from £1.5m.
In practice this means that I'll restrict my pot to that size (less, frankly, to make sure I don't go over and lose all additional benefits), which will cut the size of the 25% withdrawal commensurately.
The number of reasons not to invest in a pension here in the UK, but instead to put money into territories who I trust more, seems to grow each year.
Where would you trust more?0 -
Are you sure? I got home this week to a letter telling me that the maximum pension pot that I can have while still keeping my tax benefits is now going to be £1.25m, down from £1.5m.
If the reductions down from 1.8 million affect you then you would just apply for fixed protection to ensure they dont.
However, that is an overall limit in the pension and not a reduction of 25% availability.The number of reasons not to invest in a pension here in the UK, but instead to put money into territories who I trust more, seems to grow each year.
That doesnt make sense. If you dont like the pension wrapper then use a different wrapper. Changing it to use non-UK domiciled investments which lack consumer protections is not a reasonable alternative.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Changing it to use non-UK domiciled investments which lack consumer protections is not a reasonable alternative.
I can't see the problem with a little diversity.
HMG can impose pretty much any regulations they want on pensions at any point and have shown that they now regard these pots as a source of tax income, and not just in the future but right now.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
gadgetmind wrote: »I can't see the problem with a little diversity.
HMG can impose pretty much any regulations they want on pensions at any point and have shown that they now regard these pots as a source of tax income, and not just in the future but right now.
Diversity is fine. However, going with investments that are domiciled outside of UK regulation and consumer protection is likely to result in less consumer protection and greater risk. For all its faults, regulation and consumer protection in the UK is far greater than most countries.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
For all its faults, regulation and consumer protection in the UK is far greater than most countries.
I don't disagree but parties of all colours have developed a taste for showboating to the masses by attacking anyone with the temerity to actually work hard and save for their old age.
Come next election, I expect things to get worse rather than better.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0
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