Winter fuel allowance gone

[yellowbelly]

And how long before the tax free lump sum is abolished? Who can say ?

But that won't be a 'TAX RISE' so it's all good!

[NWpostie]

Rachel Reeves is on record writing to the Conservative ministers demand that winter fuel payments are not abolished "because it will cause hardship"

Ahem ! I smell hypocrisy with flies on

[RobertT]

And how long before the tax free lump sum is abolished? Who can say ?

But that won't be a 'TAX RISE' so it's all good!

Any decision to scrap the tax free cash when taking a pension will clearly raise more revenue for the Exchequer, because that money would become taxable income. But I'm not sure any government would be brave enough to do that, at least not all in one hit.

What's more realistic in my opinion, is a reduction in the percentage down from 25%, or a lowering of the total amount that's available tax free, which assuming you have pensions big enough is currently £268k.

Labour are having a pension review, so I'm sure we'll find out in due course.

[Postie Malone]

And how long before the tax free lump sum is abolished? Who can say ?

But that won't be a 'TAX RISE' so it's all good!

Any decision to scrap the tax free cash when taking a pension will clearly raise more revenue for the Exchequer, because that money would become taxable income. But I'm not sure any government would be brave enough to do that, at least not all in one hit.

What's more realistic in my opinion, is a reduction in the percentage down from 25%, or a lowering of the total amount that's available tax free, which assuming you have pensions big enough is currently £268k.

Labour are having a pension review, so I'm sure we'll find out in due course.

They're unlikely to scrap the tax free cash totally. It is the incentive for people to contribute to pensions rather than rely on the state in old age. Lowering the maximum tax free to £100K is much more likely, as is including the remainder of any pension pots in the overall estate when charging IHT.

[Wullie10]

I read somewhere that if one quarter of pensioner's claimed what they are entitled , then any savings on scrapping fuel allowance for 10 million people would be wiped out altogether. So many older people are struggling needlessly. Many on their own who don't understand the process of claiming . Its tragic.

[yellowbelly]

I read somewhere that if one quarter of pensioner's claimed what they are entitled , then any savings on scrapping fuel allowance for 10 million people would be wiped out altogether. So many older people are struggling needlessly. Many on their own who don't understand the process of claiming . Its tragic.

Agree what you're saying there Wullie - it's shameful (on the part of any Govt. and HMRC) that HMRC can use 'Connect' - their Big Brother Super Computer to suss out that Granny now needs to pay tax on her pension, but can't automatically find out who should be entitled to and award allowances to those who are entitled to them.

[Hyrrokkin]

I read somewhere that if one quarter of pensioner's claimed what they are entitled , then any savings on scrapping fuel allowance for 10 million people would be wiped out altogether. So many older people are struggling needlessly. Many on their own who don't understand the process of claiming . Its tragic.

Agree what you're saying there Wullie - it's shameful (on the part of any Govt. and HMRC) that HMRC can use 'Connect' - their Big Brother Super Computer to suss out that Granny now needs to pay tax on her pension, but can't automatically find out who should be entitled to and award allowances to those who are entitled to them.

Which is deliberate - last thing they want is everyone claiming what they are entitled to - scumbags the lot of them