Lump Sum Allowance 25% tax free

Exodi

DRS1 said:

The fact that they COULD do it doesn't mean they WILL do it.

No and specifically in the context of pensions it dramatically undermines confidence in retirement planning - the consequence being that as people can't fully rely on their pensions, pension saving will reduce and inevitably more people in retirement will look to the government for sustenance. Less generally, you can imagine the uproar from soon-to-be-retirees who had previously been counting down the days to retirement, planning on using the LSA to pay off their remaining mortgage. I think this is why governments typically roll out pension changes for in a decade, rather than a day, to give people time to plan accordingly.

I think it's a similar reason higher rate and additional tax relief hasn't been scrapped - inevitably people would save less for retirement, when the government wants the opposite to happen.

Cobbler_tone

With the lead story of the day 

Reeves must raise tax to cover £41bn gap, says think tank

It would be very surprising if some tax hike isn't on the immediate horizon.
Then that gets quickly translated into every change anyone can think of. It shouldn't impact on 'working people' though apparently. I guess that in itself leads to assumptions around 'non-working people'.
There will be spreadsheets going into overdrive to see the impact of multiple changes and the anticipated backlash in each area. Fun innit?! 

JoeCrystal

Or take the easiest path of them all, do nothing until it is all published and confirmed properly! Admittedly, I do enjoy reading endless articles about what may be.

Albermarle

Exodi said:

I'm trying to work out if I'm taking an ever-increasing interest in politics, or if the rumour-mills are ramping up their output in recent times.

From what I've seen so far, the Autumn budget is expected to contain income tax rises, axing of the triple lock, reducing the tax free lump sum, stopping the higher rate and additional tax relief on pensions, cutting of the cash ISA allowance, NI on landlords, continued freezing of income tax thresholds, wealth taxes, fuel duty cut ending, the list goes on. And that's not even including the significant amount of speculation around capital gains tax, inheritance tax or corporation tax.

That's why I wouldn't bother getting worked up over everything and just wait - pointless to plan around speculation and rumours, especially from outlets which are motivated to create eye-catching articles (like the "labours coming for your pensions" earlier this year) which ended up amounting to nothing. As I said before, this forum was flooded with people trying to put money back in their pensions.

You forgot about an Exit tax for all those hordes of Millionaires planning to leave the UK and removal of the personal savings allowance.

bjorn_toby_wilde

Given the Telegraph were one of the worst for rumour milling earlier in the year I must admit to some schadenfreude when I read this one.

https://www.telegraph.co.uk/money/pensions/private-pensions/i-raided-my-pension-in-a-panic-now-the-regulator-wont-help/

Nebulous2

Exodi said:

I'm trying to work out if I'm taking an ever-increasing interest in politics, or if the rumour-mills are ramping up their output in recent times.

"Dark satanic mills" as Blake said.

There's a booming industry in rumour mills. Driving people to more and more extreme positions that it is difficult for them to row back from.

Do you think the North Koreans / Chinese / Russians will eventually sell shares in them? 

ali_bear

Not this old one again. Even if this did eventually come about, it would result in me paying a tax of approximately 20% overall on my as-yet-untouched DC pot, instead of an effective 15%. 

Yawn.