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The budget - not quite live

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Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    wotsthat wrote: »
    I'm going to chuck a load of money in my pension next tax year. I'll get 40% tax relief and child benefit back. The tax free lump sum plus the tax free HPI gains will buy me a nice retirement place at age 55. Probably keep working a little longer to recycle as much pension income as possible to get a second tax free lump sum.

    Must remember to get the taxpayer a thank you note.

    The age when can take a pension is going to rise in relation to the state pension age. So it'll be 57 within a couple of years.
  • chucknorris
    chucknorris Posts: 10,795 Forumite
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    edited 20 March 2014 at 8:56AM
    chewmylegoff wrote: »
    Pensioner bonds are worthless token gesture. Max of £10k and pay about 1% above market so max benefit of £100. Suppose it reduces the amount of money that govt has to borrow via gilts a bit...


    I totally agree, but nevertheless I think that it was a good move by the chancellor, because it will probably win some pensioners' votes. I think it was a very good budget because he has made some people better off (or at least feel better off) without it costing a lot, I like the pension drawdown/annuity and ISA changes.
    Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    chucknorris wrote: »
    I totally agree, but nevertheless I think that it was a good move by the chancellor, because it will probably win some pensioners' votes.

    National Savings has to be seen to be acting fairly in the market place. Premium bond allowance was increased also.

    The item that caught my eye. Was the charging and payment of VAT in the country of point of sale. So will hurt the American Corps such as Ebay, Amazon etc whose billing points are elsewhere in Europe. In countries whose VAT rates are lower.
  • michaels
    michaels Posts: 29,219 Forumite
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    chucknorris wrote: »
    I totally agree, but nevertheless I think that it was a good move by the chancellor, because it will probably win some pensioners' votes.

    It may be nothing on its own but it might just impact on what other savings providers offer to compete for funds.
    I think....
  • chucknorris
    chucknorris Posts: 10,795 Forumite
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    edited 21 March 2014 at 10:48AM
    Thrugelmir wrote: »
    National Savings has to be seen to be acting fairly in the market place. Premium bond allowance was increased also.

    Yeah I noticed that, I haven't looked at them for a while, but the last time I looked I think they were only paying 1.5% out in prizes (so equivalent to 2.5% to a higher rate taxpayer). At the time you could get better savings rates, what is the comparative situation now, have you recently looked at them? I wouldn't mind holding £40k of premium bonds but only if the value is reasonable, not if I am being asked to back 6/1 horses at only 5/1.


    EDIT: It is only 1.3% now
    Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
  • mystic_trev
    mystic_trev Posts: 5,434 Forumite
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    I do wonder how long it will be before the 25% tax free drawdown from a Pension is scrapped, now that a Pensioner will be able to drawdown what they like from their 'pot' I can't see the Tories doing it, but wouldn't bet be surprised to see a future Labour Government scrapping it.
  • Fella
    Fella Posts: 7,921 Forumite
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    Thrugelmir wrote: »
    The age when can take a pension is going to rise in relation to the state pension age. So it'll be 57 within a couple of years.

    I thought that took effect from 2028? Or was that what you meant i.e. that the ages are 57/67 for anyone who's currently 40 or younger?
  • grizzly1911
    grizzly1911 Posts: 9,965 Forumite
    As someone pointed out, all fine and dandy but if you only pick up a living wage, or there abouts the chances are pension and ISAs are not likely to be possible or feature highly against subsisting with higher living costs for many.

    Personal allowance increase in comparison is small beer.
    "If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....

    "big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham
  • Fella
    Fella Posts: 7,921 Forumite
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    mystic_trev wrote: »
    I do wonder how long it will be before the 25% tax free drawdown from a Pension is scrapped, now that a Pensioner will be able to drawdown what they like from their 'pot' I can't see the Tories doing it, but wouldn't bet be surprised to see a future Labour Government scrapping it.

    That would be an incredibly unpopular move with an important chunk of voting demographic though. Which isn't to say it wouldn't happen but I'd be surprised. I think it would be more Labour's style to impose limits of some sort. They like to divide "rich" versus poor wherever possible.
  • mystic_trev
    mystic_trev Posts: 5,434 Forumite
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    Fella wrote: »
    That would be an incredibly unpopular move with an important chunk of voting demographic though

    I seem to remember one of the first things New Labour did in 1997 was to raid Pensions.

    http://www.independent.co.uk/money/budget-97-pension-funds-in-uproar-over-abolition-of-tax-credit-1248706.html
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