oh dear: Minister hints at pensions tax raid on middle-class savers

[Gumbo Robot]

What impact will this have on ltd/employer contributions? for example in to a SIPP..

Good question.

When I started to make employer contributions about 10 years ago, I think you could pay in up to £150k. I think this has gradually been whittled down over the years & now stands at something like £40k (though I could be wrong) - still way above the amount that I stick in every year.

[SueEllen]

in what way would a "Pension ISA" be different from an ordinary ISA?

It counts as savings if you end up unemployed and unemployable when you are 64.

[Waldorf]

in what way would a "Pension ISA" be different from an ordinary ISA?

I'd imagine that once you had contributed then it would be ring fenced and you could not touch it until a certain age, probably 55? To encourage this rather than a normal ISA there be be done additional incentive. We will have to wait and see what is announced.

[AtW]

in what way would a "Pension ISA" be different from an ordinary ISA?

"Pension ISA" will be exactly the same as "ordinary ISAs" only you can't touch the money until you are at least 75 years old.

The "ordinary ISAs" will be phased out with at least 55% income tax plus NICs on withdrawal.

Watch out for words "ISAs millionaires" in Chancellor's budget speech closely followed by "fairness" and "haircut".

HTH

[AtW]

I'd imagine that once you had contributed then it would be ring fenced and you could not touch it until a certain age, probably 55? To encourage this rather than a normal ISA there be be done additional incentive. We will have to wait and see what is announced.

[DimPrawn]

Watch out for words "ISAs millionaires" in Chancellor's budget speech closely followed by "fairness" and "haircut".

HTH

We have trained you so well.

[ASB]

Come to think of it - 20% corp tax, 80% left, then 38.1% tax - 49.52% left: so effective rate of 50%+ tax from next month.

Depressing isn't it. I expect your figures are sadly right. For salary when in the 40% bracket £1 - 13.8 er NI = 87.87 2% er's NI, 40% IT = 50.96p retained.

And then of course there is VAT on whatever buy with it. That's another 7.5p. Down to 42.46.

Use it to buy about half a litre of fuel and they will have about 25p in fuel duty for good measure.

Damn pleased I live in a low tax area. :-(

[SueEllen]

When are you standing for election? You will have to become a local councillor first and gather foot soldiers to help with canvassing.

[AtW]

We have trained you so well.

I am now 100% British mate - I whine a lot about things I don't like but do nothing about it ...

[AtW]

When are you standing for election? You will have to become a local councillor first and gather foot soldiers to help with canvassing.

I am unelectable