Confusion over returning tax free lump sums to the pot.

Marcon

MetaPhysical said:

However.... The government could ease the media frenzy every budget day (which is becoming increasingly damaging) by making a simple statement: - "We have no plans in this parliament to make any adjustments to pensions taxation and thresholds" or words to that effect.

Which of course everyone would believe without question(!), but think what would happen when they don't vouchsafe such comforting words, or don't deny a rumour...

squirrelpie

MetaPhysical said:

However.... The government could ease the media frenzy every budget day (which is becoming increasingly damaging) by making a simple statement: - "We have no plans in this parliament to make any adjustments to pensions taxation and thresholds" or words to that effect.

I thought the 'media frenzy' was quite entertaining! And it seems to be lucrative for the government. What's not to like?

Cobbler_tone

squirrelpie said:

Cobbler_tone said:

arthur_fowler said:

af1963 said:

Perhaps the Daily Telegraph will voluntarily compensate those who were misled by its scaremongering ?

No, thought not.

Far from it. People who have acted on their scaremongering coming back to them for help! 
https://www.telegraph.co.uk/money/pensions/private-pensions/i-raided-my-pension-in-a-panic-now-the-regulator-wont-help/

Looking at 'Julia' I am struggling to muster any sympathy for some reason. 

Julia Westcott-Hutton portrayed Party Guest in Sonic the Hedgehog 3.

 

Her work 'in the city' must have been more successful than her acting career. 

Cobbler_tone

MetaPhysical said:

However.... The government could ease the media frenzy every budget day (which is becoming increasingly damaging) by making a simple statement: - "We have no plans in this parliament to make any adjustments to pensions taxation and thresholds" or words to that effect.

You mean politicians making promises? 

It all adds to the fun. I was waiting to get stung on CGT as my buyer was dragging his heels on a completion, despite chasing him via the solicitors it was like pulling teeth. In an ironic twist of fate it didn't impact me but increased his stamp duty bill. I loved it. 

NoMore

MetaPhysical said:

However.... The government could ease the media frenzy every budget day (which is becoming increasingly damaging) by making a simple statement: - "We have no plans in this parliament to make any adjustments to pensions taxation and thresholds" or words to that effect.

I’m pretty certain they did issue a statement about the 25% tax free being safe after starmer made a balls up during a radio interview, barely reported and press continued to speculate anyway. 

Unfortunately because it was barely reported I can’t find it ! 

Edit : link to story https://citywire.com/new-model-adviser/news/labour-says-it-won-t-drop-tax-free-pension-lump-sum-after-radio-mix-up/a2445431

MeteredOut

NoMore said:

MetaPhysical said:

However.... The government could ease the media frenzy every budget day (which is becoming increasingly damaging) by making a simple statement: - "We have no plans in this parliament to make any adjustments to pensions taxation and thresholds" or words to that effect.

I’m pretty certain they did issue a statement about the 25% tax free being safe after starmer made a balls up during a radio interview, barely reported and press continued to speculate anyway. 

Unfortunately because it was barely reported I can’t find it ! 

It was reported quite widely.

• https://www.ft.com/content/a3ae8763-07bb-4fd1-b2dc-cec5fc056cea
• https://www.independent.co.uk/news/uk/labour-rishi-sunak-bbc-radio-5-live-b2570536.html
• https://citywire.com/new-model-adviser/news/labour-says-it-won-t-drop-tax-free-pension-lump-sum-after-radio-mix-up/a2445431
• https://www.thenational.scot/news/national/24417545.labour-says-no-plans-end-tax-free-lump-sum-option-pensioners/

I laughed at the quote from one pension provider (who did not want to be named) who blamed those in authority for people panicking, despite there being just as many people (I'd argue significantly more, but that could be confirmation bias) saying the 25%/268K was unlikely to be cut.

“Neither HMRC nor the Government confirmed anything to do with tax-free lump sums before the Budget, causing people to take theirs in a panic. 

NoMore

MeteredOut said:

NoMore said:

MetaPhysical said:

However.... The government could ease the media frenzy every budget day (which is becoming increasingly damaging) by making a simple statement: - "We have no plans in this parliament to make any adjustments to pensions taxation and thresholds" or words to that effect.

I’m pretty certain they did issue a statement about the 25% tax free being safe after starmer made a balls up during a radio interview, barely reported and press continued to speculate anyway. 

Unfortunately because it was barely reported I can’t find it ! 

It was reported quite widely.

• https://www.ft.com/content/a3ae8763-07bb-4fd1-b2dc-cec5fc056cea
• https://www.independent.co.uk/news/uk/labour-rishi-sunak-bbc-radio-5-live-b2570536.html
• https://citywire.com/new-model-adviser/news/labour-says-it-won-t-drop-tax-free-pension-lump-sum-after-radio-mix-up/a2445431
• https://www.thenational.scot/news/national/24417545.labour-says-no-plans-end-tax-free-lump-sum-option-pensioners/

And it didn’t make any difference to the speculation or people believing the speculation rather than this. 

Marcon

Just look at the number of people who post on sites like this because they have 'heard' or 'read' something and 'want to know what others think' (as if somehow the consensus on a website is going to miraculously predict the future...).

bjorn_toby_wilde

MeteredOut said:

NoMore said:

MetaPhysical said:

However.... The government could ease the media frenzy every budget day (which is becoming increasingly damaging) by making a simple statement: - "We have no plans in this parliament to make any adjustments to pensions taxation and thresholds" or words to that effect.

I’m pretty certain they did issue a statement about the 25% tax free being safe after starmer made a balls up during a radio interview, barely reported and press continued to speculate anyway. 

Unfortunately because it was barely reported I can’t find it ! 

It was reported quite widely.

• https://www.ft.com/content/a3ae8763-07bb-4fd1-b2dc-cec5fc056cea
• https://www.independent.co.uk/news/uk/labour-rishi-sunak-bbc-radio-5-live-b2570536.html
• https://citywire.com/new-model-adviser/news/labour-says-it-won-t-drop-tax-free-pension-lump-sum-after-radio-mix-up/a2445431
• https://www.thenational.scot/news/national/24417545.labour-says-no-plans-end-tax-free-lump-sum-option-pensioners/

I laughed at the quote from one pension provider (who did not want to be named) who blamed those in authority for people panicking, despite there being just as many people (I'd argue significantly more, but that could be confirmation bias) saying the 25%/268K was unlikely to be cut.

“Neither HMRC nor the Government confirmed anything to do with tax-free lump sums before the Budget, causing people to take theirs in a panic. 

That one made me laugh too.

All the fault of the government and HMRC for not denying the rumours. Nothing whatever to do with the Telegraph/Mail/Express/Sun for starting them.

Albermarle

Back to the original link.
It seems that the FCA are OK with people returning tax free sums within a 30 day cooling off period.
Although some providers do not allow it all, some do.
Now weeks later HMRC have a different opinion.
Some people have reinstated the tax free cash, some are now blocked, for the time being anyway.
Possibly some will have put the tax free cash back but lost the LSA % .

Looks like a big mess.............