The Telegraph Cannot Make it's Mind Up

drumtochty

The Telegraph has been saying the Scottish Government is wrong to have higher taxes as people will move south due to the lower tax rates over the border.


Now today it is saying that Scottish tax payers will get a bigger pension as the have 31% and 41% and 46% tax relief on their pensions and at lower levels than tax payers over the border which will give scottish tax payers an advantage that will result in them having larger pension pots.


Maybe just a slow news day as people are not wanting to read more about Brexit.

dunstonh

Now today it is saying that Scottish tax payers will get a bigger pension as the have 31% and 41% and 46% tax relief on their pensions and at lower levels than tax payers over the border which will give scottish tax payers an advantage that will result in them having larger pension pots.

There isnt much logic in that as pensions are treated as gross contributions So, £30k in a pension in Scotland is £30k in England. The tax relief is only giving back the tax paid in the first place. So, the net position after everything is the same.

Telegraph articles also moan about the cost of advice at times. But then they entered a commercial relationship with St James Place who are one of the most expensive tied sales companies going.

Johnnyboy11

It works because a higher rate taxpayer now will likely be a basic rate taxpayer in retirement. So a bigger delta between the two rates, as is the case in the People's Republic of Scotland, means more benefit.

drumtochty

Only for money purchase schemes and if as they say people will leave Scotland due to the higher taxes especially higher earners like you pinpoint, they will not be in Scotland to get the benifit that of the higher reliefs.


The Telegraph has to make up it's mind on that one.

zagubov

drumtochty wrote: »

Only for money purchase schemes and if as they say people will leave Scotland due to the higher taxes especially higher earners like you pinpoint, they will not be in Scotland to get the benifit that of the higher reliefs.


The Telegraph has to make up it's mind on that one.

I think by asking mainstream media outlets to see anything positive in the Scottish government, you are asking more than they're capable of.

Some newspapers would respect local autonomy if it makes a place a tax haven. Why not check how much home rule newspapers owners residential jurisdictions enjoy compared with the devolved home nations.;)

Johnnyboy11

Missing from the article is the commensurate reduction in Child Benefit Charge, which can be avoided entirely by investing earnings above £50k into a pension.