No change to tax free cash on 26 November

MetaPhysical

In the end, after some very deep breaths and long and careful thought, I didn't take any TFC.  I figured Labour would not want to risk a fight with senior doctors and consultants.  I also figured that she'll do something with ISAs so what would I do with the cash in any event?  It would be the worst of all possible worlds if she didn't cut the TFC and cut the ISA limit!

I can UFPLS my DC pot for income which is what I always planned for.

The TFC circus will start again next summer '26.  The public finances will further weaken in the next 12 months and we will be back here again ahead of the budget in '26.  Unless out-of-control spending is reigned in we will continue in this doom spiral.

m_c_s

MetaPhysical said:

 Unless out-of-control spending is reigned in we will continue in this doom spiral.

It now looks certain that there is yet another U-turn coming and another £3.5Bn will be added to the enormous welfare bill to remove the 2 child benefit cap. That alone uses up 0.5% of the 2% increase on income tax that seems to be likely.

Eldi_Dos

Albermarle said:

michaels said:

Yes - but having floated the idea we can all be happy that we are might be 'only' seeing a 2% tax rise on all pension drawdown above the TFLS - phew....

Corrected that for you .
Nothing confirmed so far.

Panorama may be looking for a new editor if you feel like a challenge.

Notfarfromtheborder

MetaPhysical said:

In the end, after some very deep breaths and long and careful thought, I didn't take any TFC.  I figured Labour would not want to risk a fight with senior doctors and consultants.  I also figured that she'll do something with ISAs so what would I do with the cash in any event?  It would be the worst of all possible worlds if she didn't cut the TFC and cut the ISA limit!

I can UFPLS my DC pot for income which is what I always planned for.

The TFC circus will start again next summer '26.  The public finances will further weaken in the next 12 months and we will be back here again ahead of the budget in '26.  Unless out-of-control spending is reigned in we will continue in this doom spiral.

I am in the process of taking some TFC, however, crystalizing just over £56K giving me just under £17K (was an element of protected TFC on this policy which is why it is over 25%)

Rationale,

This is less that 8% of total portfolio, we are both over 55, working part time and still sacrificing between us £28 K to avoid paying HRT.

Reason for taking full the amount above is that this was in an old scheme that just allowed one TFC withdrawal, so taken 3,5 years in one go equating to £5K pa

We are pension rich and relatively cash poor in comparison, also want to use current gifting rules to pass some cash down to son

I am viewing the withdrawal as giving us back some of the salary sacrifice we are making now, Our pensions will still be growing, time is shortening and this gives an extra £400pcm.

No trigger of MPAA

Here's waiting for Rachel....

m_c_s

m_c_s said:

MetaPhysical said:

 Unless out-of-control spending is reigned in we will continue in this doom spiral.

It now looks certain that there is yet another U-turn coming and another £3.5Bn will be added to the enormous welfare bill to remove the 2 child benefit cap. That alone uses up 0.5% of the 2% increase on income tax that seems to be likely.

Errr ignore that bit now.
Anything (apart from Income tax, NI and VAT increases) is now back on the table. 

HedgehogRulez

And a u turn on the IT/NI switcheroo.
good grief

Aylesbury_Duck

HedgehogRulez said:

And a u turn on the IT/NI switcheroo.
good grief

A u-turn on something that wasn't announced in the first place?  

westv

Aylesbury_Duck said:

HedgehogRulez said:

And a u turn on the IT/NI switcheroo.
good grief

A u-turn on something that wasn't announced in the first place?  

A u turn that wasn't even announced either lol!

Cobbler_tone

Aylesbury_Duck said:

HedgehogRulez said:

And a u turn on the IT/NI switcheroo.
good grief

A u-turn on something that wasn't announced in the first place?  

I think it shows the benefit of leaking/briefing stuff before actually doing it. It would be disingenuous to suggest Reeves didn’t make a very clear intention to break that particular promise last week. 

Can we move onto reducing the tax bands now?
I personally think that despite there being some significantly impactful changes on the horizon, we’ll also see additions to our ridiculous amount of borrowing.

HedgehogRulez

Aylesbury_Duck said:

HedgehogRulez said:

And a u turn on the IT/NI switcheroo.
good grief

A u-turn on something that wasn't announced in the first place?  

The worst sort - a litany of broken promises this parliment!