Budget: Hammond mulling tax cuts for young paid for by slashing pension tax reliefs

Eric_the_half_a_bee

I know that there is speculation around pension tax reliefs before every budget, but this is being widely reported:

http://www.dailymail.co.uk/news/article-4983488/Tax-threat-older-workers-autumn-budget.html
http://www.cityam.com/273873/budget-2017-philip-hammond-mulling-tax-cuts-young-paid
http://www.telegraph.co.uk/news/2017/10/15/philip-hammond-mulling-new-age-tax-raid-older-workers-budget/
https://www.moneymarketing.co.uk/pension-tax-relief-firing-line-budget/

JoeCrystal

Interesting! Speaking as someone who is his thirties, I look forward just how this year budget benefit me personally. (Clue is not at all. A single childless healthy taxpayer is always the one to be shafted, no matter the age.)

Maybe we will get better tax relief on pension contribution, that would be nice and may encourage more to save earlier in the twenties and thirties.

atush

Will he still be in the job come the budget?

BLB53

Will he still be in the job come the budget?

I really hope not...needs to be replaced asap.

Lorian

Would he risk loosing two older votes for every new one?

Pennywise

BLB53 wrote: »

I really hope not...needs to be replaced asap.

Why do we always get hopeless chancellors? You can go back decades and it's just one after another who havn't a clue. The only half decent one in the last 30 years was Alistair Darling, which is saying something as I'm a Tory, but he was the only one who seemed to take his job seriously and do some proper thinking/analysis about the consequences of his proposals.

Malthusian

All sorts of radical ideas get floated in the newspapers before a Budget so that when the real thing comes, everyone breathes a sigh of relief when it turns out to be the usual boring deckchair-rearranging.

The Torygraph has already skipped ahead to the bit where the whole thing is oversimplified and misleadingly described as an "X" tax (pasty tax, dementia tax, bedroom tax), with this Budget being described as a "tax on age". We don't even know what will be in it yet, but who cares, it's a "tax on age".

It's like the Chinese Zodiac, the next Budget will be dubbed the "tax on women" and the one after the "tax on dragons" and after twelve Budgets we go round again.

Malthusian

Pennywise wrote: »

The only half decent one in the last 30 years was Alistair Darling, which is saying something as I'm a Tory, but he was the only one who seemed to take his job seriously and do some proper thinking/analysis about the consequences of his proposals.

The genius behind the 50% tax band that resulted in less tax being collected from higher earners, as everyone who was half-awake during A-Level Economics predicted would happen?

Either he wasn't properly thinking about that proposal or he simply didn't care about making the Treasury and the country poorer in order to pander to the smash-the-rich hard left.

westv

I'm surprised the old chestnut "25% tax free lump sum under threat" hasn't reared it's head yet.

dunstonh

The month before a budget sees all the think tanks come out trying to suggest various things that could be done. Usually presented by the media as something the Govt is considering. Sometimes a think tank me be on the same wavelength. Just as a broken click is right twice a day.

More often than not, they are very far from the truth.

Pennywise

Malthusian wrote: »

The genius behind the 50% tax band that resulted in less tax being collected from higher earners, as everyone who was half-awake during A-Level Economics predicted would happen?

Either he wasn't properly thinking about that proposal or he simply didn't care about making the Treasury and the country poorer in order to pander to the smash-the-rich hard left.

Not as bad as child benefit removal for earners over £50k or personal allowance removal for earners over £100k. Now they really were stupid changes that have done far more harm as the numbers of people affected are massively higher than the very few earners over £150k. In particular the £100k threshold for loss of personal allowance has directly resulted in fewer doctors and dentists working full time as they now tend to work fewer hours to keep their income below £100k and avoid the punitive 62% tax/nic marginal rate!