Pension tax raid being touted again

crv1963

I don't think he'll be keen to raise the rate of Income Tax- to break a manifesto pledge on this would destroy any confidence in the Tories ability to manage the economy. My thoughts are he'll not want to do anything that stops the economy returning to normal. Making pension savings harder is not something he'd want to do. 

More likely- bring pensions pots into the estate for IHT purposes- allow the pots to go to spouse only, no leaving large sums to children and grandchildren or down the generations, off set any protests by increasing the IHT threshold. Hit second home owners by taxing not only the sale of them and rental income but also the benefit of owning it- tax annually on the value, over and above Council Tax Rate. Then introduce a low rate of tax on the TFLS probably 5% or so. Look to motoring costs and increase charges for town/ city centre driving, introduce them into all major towns and cities. 

Likely to try to encourage spending by lowering VAT on Cafes/ restaurants/ pubs rather than return to old rates when Covid is over. Incentives for developers to turn commercial properties (shops etc) into flats- revitalise city centres and provide affordable housing for the younger/ older generations. Likely keep access to pensions at 55 to encourage retirement to provide jobs for the unemployed. 

Possibly Covid-bonds, park repaying way down the line when inflation and time have erroded the value. He has an unenviable job with recession, brexit and covid hitting him all at the same time. Riding more than two horses, encourage saving for old age, spending for business now and protecting manufacturing and the city from storms while large numbers have discovered home working works for them, others that hate it.

Mick70

tax  changes on second homes is almost inevitable, it seems a massively growing trend to buy a second home now and rent out as holiday home as a means of additional pension 

zagfles

If they want to encourage spending one of the best ways is to discourage saving. Interest rate cuts are the usual tool but obviously there's virtually zero scope there. So other ways to discourage saving would be to discourage pension saving particularly for those who are likely to end up with a decent pension anyway. Eg higher rate taxpayers.

Another might be to remove the tax benefits of ISAs, maybe compensate a bit with increases in the savings/dividend allowance.

Mickey666

How about removing the cap on NI contributions?  When most other taxes seem to be progressive,  I’ve never quite understood why the NIC rate REDUCES for higher earners?  

Black_Cat2

Got this email today re. State Pension age:

Currently under pensions freedoms individuals can access their pension from age 55 years. However the government has confirmed that to reflect trends in longevity and to encourage individuals to remain in work, while also helping to ensure pension savings provide for later life the state pension age will increase from 55 to 57 in 2028.

Not sure if it's relevant to this thread but there you go lol 🤔🐈

coyrls

Black_Cat2 said:

Got this email today re. State Pension age:

...... the state pension age will increase from 55 to 57 in 2028.

The state pension age is neither 55 or 57!  Sounds a dodgy email.

zagfles

Mickey666 said:

How about removing the cap on NI contributions?  When most other taxes seem to be progressive,  I’ve never quite understood why the NIC rate REDUCES for higher earners?  

Because the annualised threshold co-incides with higher rate tax, so combined with income tax it is generally progressive, from 32% to 42%. But there are some anomilies to do with income tax being assessed over the year and NI over the pay period...

zagfles

Black_Cat2 said:

Got this email today re. State Pension age:

Currently under pensions freedoms individuals can access their pension from age 55 years. However the government has confirmed that to reflect trends in longevity and to encourage individuals to remain in work, while also helping to ensure pension savings provide for later life the state pension age will increase from 55 to 57 in 2028.

Not sure if it's relevant to this thread but there you go lol 🤔🐈

That's private pension age not state pension age. The above rise have been planned for years, it's nothing new.

zagfles

coyrls said:

Black_Cat2 said:

Got this email today re. State Pension age:

...... the state pension age will increase from 55 to 57 in 2028.

The state pension age is neither 55 or 57!  Sounds a dodgy email.

Well I read it and will now start a WASPI style campaign to get my state pension at 55 like I was promised

JoeCrystal

Black_Cat2 said:

to encourage individuals to remain in work, while also helping to ensure pension savings provide for later life the state pension age will increase from 55 to 57 in 2028.

I read the same thing in the FT just now. I would think that what they meant by encouraging the individuals to remain in work is to keep paying income taxes on their earnings!