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Previously on "October Budget is "going to be painful", Starmer warns"

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  • KackAttack
    replied
    Originally posted by malvolio View Post

    It's not a bad option, to be fair. It's currently 25% of the balance at the time of withdrawal, less any withdrawals monies already taken. Better to pay tax on a smaller withdrawal than on the whole thing...
    A better option would be to put in a parliamentary Act just to exclude your own personal pension from any tax rises - think this can't be done? Well someone found a way.. check out the 2013 Act - "The Pensions Increase (Pension Scheme for Keir Starmer QC) Regulations"

    https://www.legislation.gov.uk/uksi/.../contents/made

    Leave a comment:


  • malvolio
    replied
    Originally posted by escapeUK View Post
    Just been chatting with my neighbour who works in pensions. He says they are incredibly busy, with people grabbing their 25% tax free lump sum. He's been telling people that its very unlikely any change would happen before April 2025, but people are not listening to advice to wait and see and want to withdraw immediately!
    It's not a bad option, to be fair. It's currently 25% of the balance at the time of withdrawal, less any withdrawals monies already taken. Better to pay tax on a smaller withdrawal than on the whole thing...

    Leave a comment:


  • escapeUK
    replied
    Just been chatting with my neighbour who works in pensions. He says they are incredibly busy, with people grabbing their 25% tax free lump sum. He's been telling people that its very unlikely any change would happen before April 2025, but people are not listening to advice to wait and see and want to withdraw immediately!

    Leave a comment:


  • malvolio
    replied
    Originally posted by willendure View Post

    Increasing tax on employment, what a brilliant plan to help the economy!
    Well someone has to pay for an ever expanding civil service...

    Leave a comment:


  • willendure
    replied
    Originally posted by mogga71 View Post
    Increasing Employer NI is very likely to happen ...
    Increasing tax on employment, what a brilliant plan to help the economy!

    Leave a comment:


  • mogga71
    replied
    Originally posted by Protagoras View Post

    Quite a few suggestions around that the cap could be reduced, and rumours of reduction to 20%.
    Never mind that people have be planning retirement for years under current arrangements.

    Even worse, if taking the lump sum was to trigger the reduced MPAA.

    I think they will reduce the tax free lump sum amount .... however they will give some form of advanced warning .... eg. from next April you will only be able to take 200k or 100k tax free. Doing it immediately would cause carnage for those about to retire.

    Increasing Employer NI is very likely to happen ... and of course is probably the most unfair tax for all those Contactors caught Inside. The while Inside argument by the Government is that you are a disguised employee and therefore not an employer .... but hey you need to pay the employer NI as somebody needs to ...and we are just about to increase it.

    Leave a comment:


  • Protagoras
    replied
    Originally posted by ChimpMaster View Post

    I hope it will be very difficult for Labour to removed this completely but they might well reduce the limit to say £100k. And of course we all know they think anyone with a couple of shillings in their back pocket is considered 'wealthy' and must be taxed to the brink of extinction.
    Quite a few suggestions around that the cap could be reduced, and rumours of reduction to 20%.
    Never mind that people have be planning retirement for years under current arrangements.

    Even worse, if taking the lump sum was to trigger the reduced MPAA.


    Leave a comment:


  • ChimpMaster
    replied
    Originally posted by Protagoras View Post
    People I know are planning to take the 25% in the next month to mitigate that risk and also the risk that the limit is reduced.
    The maximum tax free cash you can take across all your pension arrangements is £268,275.

    It was of course quite a bit higher when the Lifetime Allowance was higher, for example £450,000 in 2012.

    I hope it will be very difficult for Labour to removed this completely but they might well reduce the limit to say £100k. And of course we all know they think anyone with a couple of shillings in their back pocket is considered 'wealthy' and must be taxed to the brink of extinction.

    Leave a comment:


  • Protagoras
    replied
    Originally posted by mogga71 View Post

    There is no way they will have the balls to claim income tax on the 25% lump sum ... that would be a step too far.
    People I know are planning to take the 25% in the next month to mitigate that risk and also the risk that the limit is reduced.





    Leave a comment:


  • vetran
    replied
    Originally posted by woody1 View Post

    Wouldn't they have to up the minimum wage massively for no one to lose out by the removal of WTC (being replaced by UC)?

    Remember, anything that's likely to make people who might vote Labour worse off, is much less likely to happen.
    Probably but it needs doing.

    Leave a comment:


  • woody1
    replied
    Originally posted by vetran View Post
    They could remove the multi national company subsidy known as working tax credit and up the minimum wage.
    Wouldn't they have to up the minimum wage massively for no one to lose out by the removal of WTC (being replaced by UC)?

    Remember, anything that's likely to make people who might vote Labour worse off, is much less likely to happen.

    Leave a comment:


  • vetran
    replied
    Originally posted by woody1 View Post

    That's the problem. A lot of taxes are circumventable either by "tax planning" or, as you say, simply leaving the country.

    At least if they increased employment income tax/NI or VAT, they'd collect most of the projected revenue. Hike other taxes and there might be a substantial shortfall as people find ways of avoiding/mitigating them.
    Indeed when they start squeezing they will find the fruit has gone!

    They could remove the multi national company subsidy known as working tax credit and up the minimum wage.

    Leave a comment:


  • woody1
    replied
    Originally posted by vetran View Post

    The rich are mobile, they will leave until the tax changes.
    That's the problem. A lot of taxes are circumventable either by "tax planning" or, as you say, simply leaving the country.

    At least if they increased employment income tax/NI or VAT, they'd collect most of the projected revenue. Hike other taxes and there might be a substantial shortfall as people find ways of avoiding/mitigating them.
    Last edited by woody1; 2 September 2024, 11:28.

    Leave a comment:


  • vetran
    replied
    Originally posted by woody1 View Post

    Yes but I bet the well-off minority (traditionally Tory voters) will be hit the hardest.
    The rich are mobile, they will leave until the tax changes.

    Leave a comment:


  • NotAllThere
    replied
    Originally posted by woody1 View Post

    Yes but I bet the well-off minority (traditionally Tory voters) will be hit the hardest.
    It'll be the (Tory voting) poor country folk who'll be hardest hit. At least in the Home Counties.

    Leave a comment:

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