Pensions: George Osborne to drop tax relief plans

d70cw6

http://www.bbc.co.uk/news/uk-35732604

thank god for that.

Zanderman

d70cw6 wrote: »

http://www.bbc.co.uk/news/uk-35732604

thank god for that.

Not sure that any God played much of a part!

Much more likely that thanks (if it should be thanks) are to the vested interests and resistance to change in the pensions industry and to fears that the changes would annoy higher rate tax payers.

As a basic rate tax payer the proposals looked fairly interesting, depending, of course, on the detail.

RickyB2000

Doesn't surprise me that much. My instinct said nothing would change, though of course I didn't know for sure. However, it was fun speculating!

TheTracker

Nothing like 4 threads on the same topic.
No doubt some MSE person will make another one soon.

RickyB2000

This is probably news worth starting a new thread for, rather than adding to the other threads that are all over the place with regards to speculative changes

peterg1965

If this comes to pass on 16th March and tax relief and salary sacrifice remain untouched, I will be buying a bottle of champagne to celebrate!

A step too far for GO and he risked upsetting the people he needs to support him in his aspiration to become Prime Minister for a couple of terms after DC. Politics and common sense rule the day!

fastestlouigie

The tax relief on pensions requires modifying and I was sure a Tory Chancellor wasn't going to make major changes, as it's yet another perk for the middle classes. He probably will revisit it but with another set of proposals. A classic case of feeding "info"/rumours, then putting forward what you actually intended to do, making you look like you're compromising by listening to all interested parties.

david78

He may still tweak the limits though.

JoeCrystal

Well, that was very disappointing!

buglawton

Yes, after making changes to buy to let that favour multi-property companies over small landlords, Osborne has been leant on by his colleagues not to commit a similar faux pas over pensions. Lately he's been doing his best to make UKIP (or even the Libdems) more electable.

Trouble is, if the conservatives win the next election, or a Brexit pushes Cameron off his perch, an emboldened Osborne might come back for another attack on retirement plans.

peterg1965

fastestlouigie wrote: »

The tax relief on pensions requires modifying and I was sure a Tory Chancellor wasn't going to make major changes, as it's yet another perk for the middle classes. He probably will revisit it but with another set of proposals. A classic case of feeding "info"/rumours, then putting forward what you actually intended to do, making you look like you're compromising by listening to all interested parties.

I don't really get the 'perk for the middle classes argument'. Millions more middle income earners pay the higher rate tax and nothing has ever been don over the last decade or so to arrest this fiscal drag. Higher rate tax relief for pensions is a small way of making up for the middle classes taking on an increased tax burden.

I would advocate no tax relief at all for those earning over £125-£150k+ . It might not increase tax revenue that much, but those people genuinely are wealthy, are likely to have more options open to them and therefore should shoulder some more of the burden. Couple this move with getting rid of the 45% additional tax rate and it makes it a palatable move for high earners, all in my opinion of course.