We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
LISA 25% penalty charge
Comments
-
Sorry I could have worded it better. From 2029 once a basic rate taxpayer has made £2k pa sal sac pension contributions then their additional contributions will only attract income tax relief and then 75% will be taxed on withdrawal. If they put the additional contributions into a LISA, if the product is still giving bonuses, they will get the 25% bonus and no tax on withdrawal.eskbanker said:
I'm only aware of a planned capping of NI relief for sal-sac pensions, so don't see how a LISA (with no NI relief at all) would support people any better than continuing with the sal-sac?Alexland said:For a basic rate tax payer that will no longer have a sal-sac pension then keeping LISAs for retirement could be seen as a better loophole for making additional retirement contributions which they might want to close.1
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 353.9K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.2K Spending & Discounts
- 246.9K Work, Benefits & Business
- 603.5K Mortgages, Homes & Bills
- 178.3K Life & Family
- 261.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards