The Death Lottery, Double Taxation and the Leaky Tax Bucket

Albermarle

Triumph13 said:

And it's hardly a lifetime of planning when there was a 55% tax on pensions at death in 2015

Plus most people when building up the pension would have been unaware of the potential IHT benefit, even after 2015. I would guess many people affected where not even aware of it before it was mentioned in the budget !

Qyburn

Albermarle said:

Plus most people when building up the pension would have been unaware of the potential IHT benefit, even after 2015. I would guess many people affected where not even aware of it before it was mentioned in the budget !

Not sure on that, I've certainly had plenty of "advice" encouraging me to spend from other sources and leave the pension untouched, even where doing so leaves personal allowance unused.

Fluffysheep7

I'm only 26!

Albermarle

Qyburn said:

Albermarle said:

Plus most people when building up the pension would have been unaware of the potential IHT benefit, even after 2015. I would guess many people affected where not even aware of it before it was mentioned in the budget !

Not sure on that, I've certainly had plenty of "advice" encouraging me to spend from other sources and leave the pension untouched, even where doing so leaves personal allowance unused.

Yes so have I.

However until I joined this forum, I was not aware of the IHT exemption.
So of the 37 years I was building up a pension, I was only aware of it for the last 5 years.

Remember that away from the bubble of a pensions forum, most people are clueless about these matters, even some who are higher earners/have decent pension pots, as we see from new posters on a regular basis.

eskbanker

Fluffysheep7 said:

I'm only 26!

....and are therefore in a much better situation than many, in that you have plenty of time to replan under the new rules.  How much have you accumulated in your pension pot thus far?

Fluffysheep7

eskbanker said:

Fluffysheep7 said:

I'm only 26!

....and are therefore in a much better situation than many, in that you have plenty of time to replan under the new rules.  How much have you accumulated in your pension pot thus far?

Why the personal questions? It's the tax system under discussion. If I need advice I'll ask an expert.
LISA looks better option for basic rate tax payers?

eskbanker

Fluffysheep7 said:

eskbanker said:

Fluffysheep7 said:

I'm only 26!

....and are therefore in a much better situation than many, in that you have plenty of time to replan under the new rules.  How much have you accumulated in your pension pot thus far?

Why the personal questions? It's the tax system under discussion. If I need advice I'll ask an expert.

Because you were the one remarking about how retrospective action affects a lifetime of saving and planning, and then stating your age, which made it clear that you haven't had a lifetime of saving and planning, so the retrospective nature affects you very little, relative to others (who, as above, could only have started to factor the old model into their plans in 2015 anyway).

Fluffysheep7 said:

On reflection it is the retrospective aspect of the tax grab that causes anger. Yes, the changes come into effect in April 2027 but it affects a lifetime of saving and planning.

Fluffysheep7 said:

LISA looks better option for basic rate tax payers?

There's a comparison at https://www.moneysavingexpert.com/savings/lifetime-isas/#accordion-content-01337160306-1

Grumpy_chap

Fluffysheep7 said:

eskbanker said:

Fluffysheep7 said:

I'm only 26!

....and are therefore in a much better situation than many, in that you have plenty of time to replan under the new rules.  How much have you accumulated in your pension pot thus far?

Why the personal questions? It's the tax system under discussion. If I need advice I'll ask an expert.
LISA looks better option for basic rate tax payers?

As per the rules, this forum is not for general discussion or discussion of policy

eskbanker

Grumpy_chap said:

As per the rules, this forum is not for general discussion or discussion of policy

Which forum rule prohibits 'general discussion or discussion of policy'?  Specifically political debate is off limits, but general discussion about policies without descending into mud-slinging about parties or politicians is usually considered OK?

Grumpy_chap

eskbanker said:

Grumpy_chap said:

As per the rules, this forum is not for general discussion or discussion of policy

Which forum rule prohibits 'general discussion or discussion of policy'?  Specifically political debate is off limits, but general discussion about policies without descending into mud-slinging about parties or politicians is usually considered OK?

Well, you may be correct, in which case I apologise.
The threads that get deleted seem inconsistent.

The rules specifically states "encourage discussion and debate" then each page has the "no political debate" yellow box.  In sub-forums, the Benefits areas states "not about policy" and Housebuying areas states "avoid veering into broad, general debates about the market, the economy and politics" and previous more general discussion areas were closed down - Discussion Time plus Debate House Prices and the Economy.

It is unclear.