Lib Dums propose capping PCLS at £40k

Paul_Herring

relief on pension contributions disappearing completely wouldn't imply the overall tax burden has gone up

Indeed. There's no implication there at all, it's an outright statement that that's exactly what it is.

Albermarle

Salary sacrifice has risen significantly to £16.9bn a year

Dunston , do you mean this amount is lost in NI contributions with salary sacrifice , or does it also include the tax relief as well. ?

hugheskevi

Table showing cost of tax relief is at this link.

Personally, I find it rather misleading that tax received from taxation of pensions in payment today is netted off the cost of tax relief given to pensions.

hyubh

Paul_Herring wrote: »

Indeed. There's no implication there at all, it's an outright statement that that's exactly what it is.

Er, yeah, all through this thread no knickers have got even slightly twisted, gotcha ;-)

Paul_Herring

Table showing cost of tax relief is at this link.

Something not being taxed is not a cost - otherwise the government not taxing my ablutions this morning while reading the paper could also be considered a cost...

Besides, it'll get taxed eventually, either in the form of income tax when withdraw, or as VAT and excise duty after withdrawal.

buglawton

dunstonh wrote: »

LibDems can say what they like as they will not get into power by themselves. When they do have to get in bed with one of the other parties, they find out that the real world is very different to LibDem make believe.

So the big increase in personal allowances that means in 2019 you'll be able to earn £12,500 with no marginal income tax, never happened then?

2010–11 6,475
2011–12 7,475
2012–13 8,105
2013–14 9,440
2014–15 10,000
2015–16 10,600
2016–17 11,000
2017–18 11,500
2018–19 11,850
2019–20 12,500

It was a 100% LibDem idea, enabled by having the balance of MPs in a hung parliament situation.

bostonerimus

There's always political risk in pensions that have tax advantages and governments can always change the rules. I'm sure the women who lost out in the recent state pension changes could educate people about rules being changed without much notice.

LHW99

There's always political risk in pensions that have tax advantages and governments can always change the rules. I'm sure the women who lost out in the recent state pension changes could educate people about rules being changed without much notice.

This has been discussed at length on here, but truthfully there was notice, even if many maintain they had no idea.
The bad thing was coming back and doing a second increase for those whose pension age had already been raised.

ffacoffipawb

bostonerimus wrote: »

There's always political risk in pensions that have tax advantages and governments can always change the rules. I'm sure the women who lost out in the recent state pension changes could educate people about rules being changed without much notice.

Yes, 25 years is such a short warning period.

dunstonh

buglawton wrote: »

So the big increase in personal allowances that means in 2019 you'll be able to earn £12,500 with no marginal income tax, never happened then?

2010–11 6,475
2011–12 7,475
2012–13 8,105
2013–14 9,440
2014–15 10,000
2015–16 10,600
2016–17 11,000
2017–18 11,500
2018–19 11,850
2019–20 12,500

It was a 100% LibDem idea, enabled by having the balance of MPs in a hung parliament situation.

Any easy political thing for the Conservatives to accept as its cutting taxes. However, to fund it, taxation was increased in other areas and some of those increases hit the low paid harder.

Further restricting the 25% TFC is increasing taxation and again, it will hit lower/medium to medium earning households.