A Flat Rate of Tax Relief?

robin61

mat5664 wrote: »

this idea has been floating around for a while, but I don't think the Tories are going to do this just yet. Higher rate relief will go at some point though and definitely if Labour get in.

It will totally screw up my retirement plans if it is scrapped anytime soon.

We've been left wondering what wheeze the chancellor will come up with to shaft us at every budget and Autumn statement for years now. It really is very unsettling. From a personal point of views I reached the finish line in August. I was convinced more than once that they would stop the higher rate tax relief and possibly even limit the amount of the tax free lump sum. Both would have been a severe blow. Very relieved I managed to get out unscathed.

somethingcorporate

robin61 wrote: »

We've been left wondering what wheeze the chancellor will come up with to shaft us at every budget and Autumn statement for years now. It really is very unsettling. From a personal point of views I reached the finish line in August. I was convinced more than once that they would stop the higher rate tax relief and possibly even limit the amount of the tax free lump sum. Both would have been a severe blow. Very relieved I managed to get out unscathed.

Lucky you, only another 20-30 years of uncertainty & tinkering for the rest of us!! :rotfl:

Filo25

Supposedly one of the top targets for the budget, (according to the FT anyway) my pension plans may be about to get destroyed.

Realistically if it drops down to basic rate relief only I may as well not contribute beyond what the company matches, minimal tax advantage given I would likely be paying basic rate tax on the way out as well, the only advantage would be the 25% TFLS, and I wouldn't want to bet on that still being around in my retirement.

Alexland

My bet is the £40k annual allowance gets cut down to something around £25k which would be quick and easy to implement and not upset too many people.

Changing the mechanics of tax relief or sal sacrifice calculations would require several years of notice to update payroll, HMRC, pension, etc software.

Alex

Filo25

Alexland wrote: »

My bet is the £40k annual allowance gets cut down to something around £25k which would be quick and easy to implement and not upset too many people.

Changing the mechanics of tax relief or sal sacrifice calculations would require several years of notice to update payroll, HMRC, pension, etc software.

Alex

Supposedly one of the options under review along with reducing the rate of relief and reducing the income at which the taper kicks in.

westv

My bet is nothing will change.

zagfles

Alexland wrote: »

My bet is the £40k annual allowance gets cut down to something around £25k which would be quick and easy to implement and not upset too many people.

Changing the mechanics of tax relief or sal sacrifice calculations would require several years of notice to update payroll, HMRC, pension, etc software.

Alex

It won't be that hard. Payroll software already handles BIKs, pensions could just be added as another BIK. They changed the sal sac rules completely for most other benefits last year with just 6 months notice or so.

kidmugsy

robin61 wrote: »

to get out unscathed.

Did you take your whole TFLS immediately?

If you're flush and have children and grandchildren, consider gifting some of it to them before Inheritance Tax is replaced by a more severe Capital Receipts Tax. (Will it be? Possibly, but Lord knows when.)

michaels

Alexland wrote: »

My bet is the £40k annual allowance gets cut down to something around £25k which would be quick and easy to implement and not upset too many people.

Changing the mechanics of tax relief or sal sacrifice calculations would require several years of notice to update payroll, HMRC, pension, etc software.

Alex

I can certainly see that happening but pretty unfair to those of us who failed to make provision whilst younger and are now desperately trying to catch up.

For me any change may require a complete change of financial arrangements and lifestyle so I am trying not to think about it.

Filo25

michaels wrote: »

I can certainly see that happening but pretty unfair to those of us who failed to make provision whilst younger and are now desperately trying to catch up.

For me any change may require a complete change of financial arrangements and lifestyle so I am trying not to think about it.

In much the same boat myself