Do I have to pay Capital Gains Tax on pension that is in partial drawdown?

squirrelpie

scoobyjones1 said:

Seems silly to me as more people will lock money away in SIPPs and ISAs rather than spend it, when the economy needs growth badly at the moment. 

Money that is invested in SIPPs and ISAs is not "locked away" but can be invested in the economy just as much as cash that is spent.

scoobyjones1

squirrelpie said:

scoobyjones1 said:

Seems silly to me as more people will lock money away in SIPPs and ISAs rather than spend it, when the economy needs growth badly at the moment. 

Money that is invested in SIPPs and ISAs is not "locked away" but can be invested in the economy just as much as cash that is spent.

Technically no, of course it's not locked away. But the reality at the moment is that we and a lot of our friends are reluctant to sell investments and very unhappy with the tax thresholds. We are locking them away for the future or until we die. You can argue all you want but that is what happens. Tax revenue will go down under these conditions. Generally when taxes are low, revenue goes higher. People spend and business thrives. That used to be the Conservative mantra.  
Anyway I don't want to go down the political rabbit hole here. It's quite obvious where we are and people will be able to have their say, eventually.

Qyburn

Interest rates aren't a political decision.

scoobyjones1

Qyburn said:

Interest rates aren't a political decision.

Tax thresholds ARE!