Tax Free Lump Sum and 2025 Budget

michaels

Personally I think the 0.25% pension levy sounds like good politics, few will understand the impact nor that it hits lower earning pension savers the most.  Followed by reducing the TFLS (again claiming that it only hits 'wealthy' pensioners) even though again those with the least tax relief on the way in are hardest hit.

(And a triple whammy for me as I have a valuable home bought years ago but a low income but will still be subject to the council tax revaluation despite Labour promising not to do so during the General Election campaign)

Albermarle

michaels said:

Personally I think the 0.25% pension levy sounds like good politics, few will understand the impact nor that it hits lower earning pension savers the most.  Followed by reducing the TFLS (again claiming that it only hits 'wealthy' pensioners) even though again those with the least tax relief on the way in are hardest hit.

(And a triple whammy for me as I have a valuable home bought years ago but a low income but will still be subject to the council tax revaluation despite Labour promising not to do so during the General Election campaign)

No Triple whammy yet, because as  I understand it all these items are just speculation.
Not much point worrying about some things that might never happen.

MetaPhysical

Albermarle said:

michaels said:

Personally I think the 0.25% pension levy sounds like good politics, few will understand the impact nor that it hits lower earning pension savers the most.  Followed by reducing the TFLS (again claiming that it only hits 'wealthy' pensioners) even though again those with the least tax relief on the way in are hardest hit.

(And a triple whammy for me as I have a valuable home bought years ago but a low income but will still be subject to the council tax revaluation despite Labour promising not to do so during the General Election campaign)

No Triple whammy yet, because as  I understand it all these items are just speculation.
Not much point worrying about some things that might never happen.

I would personally view such a policy as dystopian - that the state can confiscate wealth in such a manner.

snarffie

MetaPhysical said:

Albermarle said:

michaels said:

Personally I think the 0.25% pension levy sounds like good politics, few will understand the impact nor that it hits lower earning pension savers the most.  Followed by reducing the TFLS (again claiming that it only hits 'wealthy' pensioners) even though again those with the least tax relief on the way in are hardest hit.

(And a triple whammy for me as I have a valuable home bought years ago but a low income but will still be subject to the council tax revaluation despite Labour promising not to do so during the General Election campaign)

No Triple whammy yet, because as  I understand it all these items are just speculation.
Not much point worrying about some things that might never happen.

I would personally view such a policy as dystopian - that the state can confiscate wealth in such a manner.

Dystopian !? 

I'd be disadvantaged by those measures, but I'd never consider them dystopian.  Maybe my dystopia threshold (my 'Grimtrigger', if you like) is higher than yours due to a penchant for a good post-apocalyptic film/book.

Cobbler_tone

I think a levy on pension funds would be an easy one as the average Jo/Joe wouldn’t have a clue what that meant.

westv

Cobbler_tone said:

I think a levy on pension funds would be an easy one as the average Jo/Joe wouldn’t have a clue what that meant.

The media would put that righf.

Cobbler_tone

westv said:

Cobbler_tone said:

I think a levy on pension funds would be an easy one as the average Jo/Joe wouldn’t have a clue what that meant.

The media would put that righf.

Point being that a minority will know what fund  fees are and opposed to taking money directly out of your pocket there’d be a mild grumble.
You read it on here but most people don’t shop around for the best fees.
Just one of countless options.

LHW99

westv said:

Cobbler_tone said:

I think a levy on pension funds would be an easy one as the average Jo/Joe wouldn’t have a clue what that meant.

The media would put that righf.

Not that many in the media picked up on Gordon Brown's cutting of dividend credits to pension funds.

Silvertabby

LHW99 said:

westv said:

Cobbler_tone said:

I think a levy on pension funds would be an easy one as the average Jo/Joe wouldn’t have a clue what that meant.

The media would put that righf.

Not that many in the media picked up on Gordon Brown's cutting of dividend credits to pension funds.

And I don't recall a media fuss over the reduction of the maximum tax free lump sum from its peak at £450K to its current £268K, although there is a lot of speculation about what may happen to it in the coming budget.  

RogerPensionGuy

Silvertabby said:

LHW99 said:

westv said:

Cobbler_tone said:

I think a levy on pension funds would be an easy one as the average Jo/Joe wouldn’t have a clue what that meant.

The media would put that righf.

Not that many in the media picked up on Gordon Brown's cutting of dividend credits to pension funds.

And I don't recall a media fuss over the reduction of the maximum tax free lump sum from its peak at £450K to its current £268K, although there is a lot of speculation about what may happen to it in the coming budget.  

A great example of how much was taken from hard working people who saved well in to pensions for so many years. 

The LTA was 1.8M and TFLS 25% was 450K as per the rules. 

However time went by and inflation rolled on. 

Then the LTA was reduced to 1M and TFLS 25% obviously reduced to 250K.

People's life & pension planning was ignored, as a minimum the old values could of been held up and rises only maybe 75% if inflation, but nothing of the like was adopted, it was just chopped. 

A total mess and removed lots of confidence about pensions. 

As mentioned, all this achieved and very very little press or backlash. 

Unless Income Tax, NI or VAT is increased, it's looking like multiple levers will be used, housing and pensions are nice convenient easy levers and they will generate a reasonable Tax Take without too much upset generaly I feel.