March budget

chiefie

Anyone any ideas of what may be coming up ?

Pension bombshells ?

Universal credit vs tax credits ?

What would be your best hope and greatest fear !

kinger101

A tax on inappropriate spaces before punctuation marks.

stevetodd

chiefie wrote: »

Pension bombshells ?


What would be your best hope and greatest fear !

I'm hoping that they leave the 40% pension tax relief alone, if they reduce it to 30% I still might continue to max out in my SIPP every year, because my pension contributions keep me out of the 60% tax band. But I might just retire too.

Mistermeaner

Would be criminal to attack tax relief on pensions. If they do public sector DB pensions should be cut as well

Tromking

Hopefully an admittance that making a priority of rationing money for our public services has been a mistake. Osborne seems to be struggling to meet his deficit reduction despite the slash and burn in the public sector.

zagfles

stevetodd wrote: »

I'm hoping that they leave the 40% pension tax relief alone, if they reduce it to 30% I still might continue to max out in my SIPP every year, because my pension contributions keep me out of the 60% tax band. But I might just retire too.

Well they wouldn't if there were flat rate relief!

zagfles

chiefie wrote: »

Anyone any ideas of what may be coming up ?

Pension bombshells ?

Definitely. They said they'd respond to the pension tax relief consultation in March. Flat rate relief looks the favourite.

Universal credit vs tax credits ?

Nope, done and dusted.

zagfles

stevetodd wrote: »

Why? If there was a flat rate of 30%/33% pension tax relief, contributing the max to my SIPP would still keep me out of the 60% tax band.

No it wouldn't. Flat rate relief doesn't reduce your taxable income, otherwise it's full marginal relief. It gives you a tax credit of whatever the rate is.

For instance, if 30%, you put £700 into your SIPP, the govt puts in £300. That's it. Your taxable income remains what it was. Your basic rate band doesn't get extended. Your ANI does not reduce. You've had all the relief.

Employer contributions would likely have to become a taxable benefit, with the flat rate tax credit offsetting part of it.

Generali

Mistermeaner wrote: »

Would be criminal to attack tax relief on pensions. If they do public sector DB pensions should be cut as well

Someone at some point is going to introduce basic rate relief only on pension payments.

In Aus we pay 15% on money that goes into a pension (superannuation) up to £12,000 and then our marginal rate on the rest. We also have 9.5% of our salaries withheld to be put into our super account.

Mistermeaner

Saving any sort of meaningful dc pot is hard enough as it is. Will they expect employers to make up the gap?

CLAPTON

Tromking wrote: »

Hopefully an admittance that making a priority of rationing money for our public services has been a mistake. Osborne seems to be struggling to meet his deficit reduction despite the slash and burn in the public sector.

what would you wish ?
lots more taxes (on the rich of course)
and/or lots more borrowing

any particular favourites?