TAX ON FULL STATE PENSION APRIL 2027

ClashCityRocker1

Personally I think Chancellor should align personal allowance with new flat rate pension. So will go up with that - obviously might have to change tax rate though!

Silvertabby

ROG said:

la531983 said:

Yes, this is not old news. It also applies this financial year, not just from 2027 on.

Who gets more than 12570 a year in state pension?

Many people who retired under the old State pension scheme - ie, those with high levels of earnings linked SERPS/SP2 and/or deferral at the old, much more generous rate, of 10% per year.

Admittedly, my neighbour on £24K State pension may be at the higher end of the scale, but there are indeed a lot of pensioners on more than the new single tier rate.

Silvertabby

Annabee said:

I'd agree with that Exodi. So sick of whining pensioners! (and I'm almost one myself).  They seem to think they should be exempt from tax.

Plus of course, it was the previous Conservative government who froze personal tax allowances, back in 2021. But of course they just don't want to know that. 

To be fair, it was part of the Tory manifesto that the personal tax allowance for pensioners would always be higher than the new single tier pension.  Labour were asked if they would match that promise, but they said 'no'.

hugheskevi

As at February 2025, there were 2,147,070 pensioners receiving at least £250 p/w of State Pension (source: DWP Stat-Xplore).

That is 1 in 6 of all pensioners already being paid more than the Personal Allowance, before the April 2025 uprating,

DRS1

Silvertabby said:

Annabee said:

I'd agree with that Exodi. So sick of whining pensioners! (and I'm almost one myself).  They seem to think they should be exempt from tax.

Plus of course, it was the previous Conservative government who froze personal tax allowances, back in 2021. But of course they just don't want to know that. 

To be fair, it was part of the Tory manifesto that the personal tax allowance for pensioners would always be higher than the new single tier pension.  Labour were asked if they would match that promise, but they said 'no'.

Yes well the Tories knew they would lose so they set a trap for Labour.  If they had actually wanted to do it they had plenty of time while they were in power.

Cobbler_tone

Silvertabby said:

Annabee said:

I'd agree with that Exodi. So sick of whining pensioners! (and I'm almost one myself).  They seem to think they should be exempt from tax.

Plus of course, it was the previous Conservative government who froze personal tax allowances, back in 2021. But of course they just don't want to know that. 

To be fair, it was part of the Tory manifesto that the personal tax allowance for pensioners would always be higher than the new single tier pension.  Labour were asked if they would match that promise, but they said 'no'.

What a bit more national debt between friends?

Andy_L

ROG said:

la531983 said:

Yes, this is not old news. It also applies this financial year, not just from 2027 on.

Who gets more than 12570 a year in state pension?

the old state pension plus any extra pension from SERPS/S2P can be over the tax allowance and has been so for many years

Silvertabby

DRS1 said:

Silvertabby said:

Annabee said:

I'd agree with that Exodi. So sick of whining pensioners! (and I'm almost one myself).  They seem to think they should be exempt from tax.

Plus of course, it was the previous Conservative government who froze personal tax allowances, back in 2021. But of course they just don't want to know that. 

To be fair, it was part of the Tory manifesto that the personal tax allowance for pensioners would always be higher than the new single tier pension.  Labour were asked if they would match that promise, but they said 'no'.

Yes well the Tories knew they would lose so they set a trap for Labour.  If they had actually wanted to do it they had plenty of time while they were in power.

The single tier pension wasn't in danger of breaching the personal tax allowance when they were in power.  But it was clear that it could in the next 2 or 3 years, hence the promise that the single tier pension would never be higher than the pensioner tax allowance. 

Silvertabby

hugheskevi said:

As at February 2025, there were 2,147,070 pensioners receiving at least £250 p/w of State Pension (source: DWP Stat-Xplore).

That is 1 in 6 of all pensioners already being paid more than the Personal Allowance, before the April 2025 uprating,

So much for the oft trotted out complaint that ALL old State pensioners get £50 per week less than ALL new State pensioners.  

ColdIron

DRS1 said:

Silvertabby said:

Annabee said:

I'd agree with that Exodi. So sick of whining pensioners! (and I'm almost one myself).  They seem to think they should be exempt from tax.

Plus of course, it was the previous Conservative government who froze personal tax allowances, back in 2021. But of course they just don't want to know that. 

To be fair, it was part of the Tory manifesto that the personal tax allowance for pensioners would always be higher than the new single tier pension.  Labour were asked if they would match that promise, but they said 'no'.

Yes well the Tories knew they would lose so they set a trap for Labour.  If they had actually wanted to do it they had plenty of time while they were in power.

If the Conservatives really wanted to set a trap, Hunt wouldn't have extended the freeze to 2028 in 2022