The Labour Government

[The Light Was Yellow Sir]

The mood music from treasury leaks is that the Chancellor - normally fairly accurate (see FT, Times, Telegraph etc financial pages) - wilI hit any pensioner with any sort of moderate Pension quite hard.
Exceptionally depressing.
I guess that's Liebour for you.
I guess they want all pensioners to die of worry and stress as soon as possible.

How is she planning on doing this?

 

[mosssideblue]

How is she planning on doing this?

Ruler on back of the legs

 

[BlueAnorak]

How is she planning on doing this?

Changes to Retirement tax free lump sums, taxing of pension contributions in a way they hope no one will notice (Gordon Brown Mk Ii), capital gains tax begining at much more modest levels, restricting exclusions, decreasing the life time allowance etc. It all adds up to a fairly brutal assault on pensioners and it will hit those with a modest pension too.
Selling a family home to move to a smaller home will be untenable for many after some of the proposed changes.
BTW, Continuing to freeze tax allowances will make the basic state pension + Serps taxable by the last year of the scheduled Labour term of office.

 

[mosssideblue]

Changes to Retirement tax free lump sums, taxing of pension contributions in a way they hope no one will notice (Gordon Brown Mk Ii), capital gains tax begining at much more modest levels, restricting exclusions, decreasing the life time allowance etc. It all adds up to a fairly brutal assault on pensioners and it will hit those with a modest pension too.
Selling a family home to move to a smaller home will be untenable for many after some of the proposed changes.
BTW, Continuing to freeze tax allowances will make the basic state pension + Serps taxable by the last year of the scheduled Labour term of office.

You inferred that she was going to hit those with a modest pension I.e those already drawing it.
Don’t see anything there that would do that

 

[TinFoilHat]

You inferred that she was going to hit those with a modest pension I.e those already drawing it.
Don’t see anything there that would do that

That'll make some of my train driving colleagues happy who've takenntheor pension and gone part time "for pocket money".

 

[hinchcliffes bulbous conk]

You inferred that she was going to hit those with a modest pension I.e those already drawing it.
Don’t see anything there that would do that

The continued freezes to the personal allowance , will mean that the indexing of the state pension will take this over the £12,570 tax free allowance. In 2026 the state pension will be £12,534, and in 2027 it will go over. You'll then lose your tax free savings allowance of £5,000. And that's if you do not have any other 'modest pensions'.

 

[mosssideblue]

The continued freezes to the personal allowance , will mean that the indexing of the state pension will take this over the £12,570 tax free allowance. In 2026 the state pension will be £12,534, and in 2027 it will go over. You'll then lose your tax free savings allowance of £5,000. And that's if you do not have any other 'modest pensions'.

So, it’s 2 years away and hardly hitting hard is it

 

[hinchcliffes bulbous conk]

So, it’s 2 years away and hardly hitting hard is it

Depends on your circumstances. If you have saved all of your life and have built up £120K in taxable savings and earned a rate of 4% that £5,000 would have been tax free. It won't be once you use all of your personal allowance. so not only are you paying more tax on your pension, but your getting done on the other security you may have built up.

 

[bluethrunthru]

High Court rules Baroness Mone-linked company breached £122m Covid contract

Chancellor Rachel Reeves said the government would "do everything" in its power "to get that money back".

www.bbc.co.uk

 

[hampshireblue]

Changes to Retirement tax free lump sums, taxing of pension contributions in a way they hope no one will notice (Gordon Brown Mk Ii), capital gains tax begining at much more modest levels, restricting exclusions, decreasing the life time allowance etc. It all adds up to a fairly brutal assault on pensioners and it will hit those with a modest pension too.
Selling a family home to move to a smaller home will be untenable for many after some of the proposed changes.
BTW, Continuing to freeze tax allowances will make the basic state pension + Serps taxable by the last year of the scheduled Labour term of office.

But she need the money pretty quickly and much of what you put here doesn't do that.

TFC from a pension would need a few years' notice I reckon. Many people will have that earmarked for mortgages, student fees, etc, and to pull the rug without plenty of notice would be crazy.

I can see them levelling up tax relief on pensions. 25% for all would be a sweetener to let the less well off put in more whilst still getting that amount of relief wouldn't be a major disincentive for the well off.

There is no life time allowance on pensions anymore, only an annual maximum allowance.

Anything proposed usually has to go through a lengthy consultation and the industry has to get all of it's technical side in place so I wouldn't see any major change for at least a couple of years.

An increase in VAT is far easier to apply and gives an almost instantaneous benefit to the government.

 

[Vic]

Depends on your circumstances. If you have saved all of your life and have built up £120K in taxable savings and earned a rate of 4% that £5,000 would have been tax free. It won't be once you use all of your personal allowance. so not only are you paying more tax on your pension, but your getting done on the other security you may have built up.

And still not paying tax on the interest on the £240k you've got in ISAs...

 

[hinchcliffes bulbous conk]

And still not paying tax on the interest on the £240k you've got in ISAs...

I’m 46 mate. But anyone with £240k in cash ISA isnt very savvy.

 

[hinchcliffes bulbous conk]

But she need the money pretty quickly and much of what you put here doesn't do that.

TFC from a pension would need a few years' notice I reckon. Many people will have that earmarked for mortgages, student fees, etc, and to pull the rug without plenty of notice would be crazy.

I can see them levelling up tax relief on pensions. 25% for all would be a sweetener to let the less well off put in more whilst still getting that amount of relief wouldn't be a major disincentive for the well off.

There is no life time allowance on pensions anymore, only an annual maximum allowance.

Anything proposed usually has to go through a lengthy consultation and the industry has to get all of it's technical side in place so I wouldn't see any major change for at least a couple of years.

An increase in VAT is far easier to apply and gives an almost instantaneous benefit to the

 

[Vic]

I’m 46 mate. But anyone with £240k in cash ISA isnt very savvy.

Ah, so you weren't the "you" in your post.

Nor is anyone "savvy" if "they" have £120k in taxable savings and none in an ISA

 

[hinchcliffes bulbous conk]

All of what you’ve said here makes sense. Public sector schemes have TFC built in to accrual as laid out in the scheme master trust deed. You can’t tax two versions of the same instrument differently as you are seen to favour one type of employer over another. Historically you would expect transitional protection to be afforded to benefits already accrued to. She could consult on changes with these coming in when pensions falls into the IHT regime in 2027.

Nine of this is quick. 2% on income tax through all bands raises £9bn over night.

22%, 42% and 47. Historically raising income tax is not inflationary either, in fact it can bring it down. Good for borrowing costs in the long run, so your debt payments are lower too.

She needs of hold her hands up and say she fucked it. Put taxes up and resign,

 

[hinchcliffes bulbous conk]

Ah, so you weren't the "you" in your post.

Nor is anyone "savvy" if "they" have £120k in taxable savings and none in an ISA

Their money would be in stocks and shares isas earning circa 7% compound per annum.

 

[metalblue]

Good news. That deal was dodgy as fuck as I'm sure some others were. However, the action was originally brought by the previous government in December 2022:

PPE Medpro: UK government launches action to recover £122m

DHSC also seeking to recover costs of storing and disposing of gowns supplied by firm Michelle Mone recommended to ministers

www.theguardian.com

Doesn’t matter if you’re a Tory or a Labour voter or any other flavour thereof. I think we can all agree this is the right thing to do.

 

[metalblue]

They’ve not had a great year, not helped by the most hostile media in living memory, but I thought Starmer came across really well in his conference speech. He isn’t a great communicator in the way Blair or Cameron were, but when he actually says what he thinks he comes across really well.

His problem is he seems too scared of himself and second guessing what to say all the time, he comes over as a bit too detached and robotic

He can communicate when he speaks a monologue, as soon as it’s a two way conversation he turns to shit.

It was a good speech to the party and an attempt to get Labour voters back who have deflected to reform. It wasn’t any cop for what the country needs right now. Priorities.

 

[metalblue]

Changes to Retirement tax free lump sums, taxing of pension contributions in a way they hope no one will notice (Gordon Brown Mk Ii), capital gains tax begining at much more modest levels, restricting exclusions, decreasing the life time allowance etc. It all adds up to a fairly brutal assault on pensioners and it will hit those with a modest pension too.
Selling a family home to move to a smaller home will be untenable for many after some of the proposed changes.
BTW, Continuing to freeze tax allowances will make the basic state pension + Serps taxable by the last year of the scheduled Labour term of office.

Worse if they stick 2p on the basic rate…

 

[TinFoilHat]

He can communicate when he speaks a monologue, as soon as it’s a two way conversation he turns to shit.

It was a good speech to the party and an attempt to get Labour voters back who have deflected to reform. It wasn’t any cop for what the country needs right now. Priorities.

It was a deffo shore up the party so they don't oust me speech.