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Pension tax to be scrapped
Topic Started: Sep 29 2014, 07:26 AM (219 Views)
Stan Still
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George scraps pensions tax: Giveaway means you can leave more money to your children

Chancellor to abolish 55 per cent tax applied to pension pots left by savers

Change from April 2015 will allow pensioners to leave more to their children

Has already scrapped rule that makes people use pension pot to buy annuity
He said: ‘People will be able to pass on their hard-earned pensions tax-free'


Read more: http://www.dailymail.co.uk/news/article-2772953/George-scraps-pensions-tax-Giveaway-means-leave-money-children.html#ixzz3Egffajrx


Good about time
Edited by Stan Still, Sep 29 2014, 07:26 AM.
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papasmurf
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I have had to deal with several relatives estates involving pensions, and no tax liability has been involved.
I assume there is some kind of high(ish) threshold involved so most people will not have been effected anyway, and the change will only benefit a few (relatively speaking,) people.
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C-too
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Stan Still
Sep 29 2014, 07:26 AM
George scraps pensions tax: Giveaway means you can leave more money to your children

Chancellor to abolish 55 per cent tax applied to pension pots left by savers

Change from April 2015 will allow pensioners to leave more to their children

Has already scrapped rule that makes people use pension pot to buy annuity
He said: ‘People will be able to pass on their hard-earned pensions tax-free'


Read more: http://www.dailymail.co.uk/news/article-2772953/George-scraps-pensions-tax-Giveaway-means-leave-money-children.html#ixzz3Egffajrx


Good about time
My kids told me to spend all my money before I go, and not to worry about passing it on to them.
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Affa
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C-too
Sep 29 2014, 07:50 AM
My kids told me to spend all my money before I go, and not to worry about passing it on to them.


Congratulations on having been a most admirable parent, and having raised such marvellous children.
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johnofgwent
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It .. It is GREEN !!
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http://www.hmrc.gov.uk/pensioners/passing-tax.htm

It's not exactly a hedge fund manager's dream although I guess Fred wossisname and certain corrupt Chief Constables will be smiling ...

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Steve K
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Affa
Sep 29 2014, 11:02 AM
C-too
Sep 29 2014, 07:50 AM
My kids told me to spend all my money before I go, and not to worry about passing it on to them.


Congratulations on having been a most admirable parent, and having raised such marvellous children.
seconded


On the actual topic it's been estimated this will cost the Treasury just £150M a year so in the big picture of things this is a trivial change. And one that had apparently already been trailed by HMRC in their July consultation. Not exactly Osborne's most honest and open moment.
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papasmurf
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Steve K
Sep 29 2014, 11:38 AM
Not exactly Osborne's most honest and open moment.
Has he ever had one of those? I am listening to his speech at the moment, he has just condemned millions more to being closer to destitution and then had the (expletive deleted ) cheek to state "we are all in this together."
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Steve K
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papasmurf
Sep 29 2014, 11:44 AM
Steve K
Sep 29 2014, 11:38 AM
Not exactly Osborne's most honest and open moment.
Has he ever had one of those? I am listening to his speech at the moment, he has just condemned millions more to being closer to destitution and then had the (expletive deleted ) cheek to state "we are all in this together."
Are we talking about the proposed benefits freeze that does not apply to disabled, pensions and maternity benefits.

http://www.bbc.co.uk/news/uk-politics-29402844

He may be an unprincipled charmless little shit with the square root of zero street sense but I can't see that as condemning millions to be seriously near to destitution
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Rich
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Steve K
Sep 29 2014, 12:00 PM
papasmurf
Sep 29 2014, 11:44 AM
Steve K
Sep 29 2014, 11:38 AM
Not exactly Osborne's most honest and open moment.
Has he ever had one of those? I am listening to his speech at the moment, he has just condemned millions more to being closer to destitution and then had the (expletive deleted ) cheek to state "we are all in this together."
Are we talking about the proposed benefits freeze that does not apply to disabled, pensions and maternity benefits.

http://www.bbc.co.uk/news/uk-politics-29402844

He may be an unprincipled charmless little shit with the square root of zero street sense but I can't see that as condemning millions to be seriously near to destitution


I cannot believe that George would be so stupid as to alienate millions of voters whilst they are fighting not only Labour but UKIP as well, so yes Steve, I agree with your comment.
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papasmurf
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Steve K
Sep 29 2014, 12:00 PM
Are we talking about the proposed benefits freeze that does not apply to disabled, pensions and maternity benefits.

http://www.bbc.co.uk/news/uk-politics-29402844

He may be an unprincipled charmless little shit with the square root of zero street sense but I can't see that as condemning millions to be seriously near to destitution.
Yes we are, that plus the seriously nasty anti-youth cuts announced yesterday. (I would also be wary of the not applying to disability benefits, given the current shambles the DWP with now nearly one million people waiting for over a year for ESA and PIP decisions.)
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Stan Still
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papasmurf
Sep 29 2014, 07:34 AM
I have had to deal with several relatives estates involving pensions, and no tax liability has been involved.
I assume there is some kind of high(ish) threshold involved so most people will not have been effected anyway, and the change will only benefit a few (relatively speaking,) people.
If you had read the article you would not have assumed ( guessed) wrongly as I understand it means that if the person who dies is 75 or over, beneficiaries will pay only the usual income tax rate when they withdraw the money, as they would with any pension.

If the person who dies is under 75, there will be no tax to pay at all it will benefit all those who have saved and wish to leave more to their children and grandchildren to give them a better start in life.



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Stan Still
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papasmurf
Sep 29 2014, 12:16 PM
Steve K
Sep 29 2014, 12:00 PM
Are we talking about the proposed benefits freeze that does not apply to disabled, pensions and maternity benefits.

http://www.bbc.co.uk/news/uk-politics-29402844

He may be an unprincipled charmless little shit with the square root of zero street sense but I can't see that as condemning millions to be seriously near to destitution.
Yes we are, that plus the seriously nasty anti-youth cuts announced yesterday. (I would also be wary of the not applying to disability benefits, given the current shambles the DWP with now nearly one million people waiting for over a year for ESA and PIP decisions.)
Yes we must not force young fit men and women into work should we, the taxpayers can afford it after all can't we.
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papasmurf
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Stan Still
Sep 29 2014, 12:43 PM
Yes we must not force young fit men and women into work should we, the taxpayers can afford it after all can't we.
Sorry but I can see any relevance of that to my comments. My only reply is if they are getting at least the minimum wage for the forced labour I have no objection as long it does not put other working people out of a job.
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papasmurf
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It appears Osborne will cap a disability benefit for two years, (I can't give a link at the moment because someone is still in the process of typing the report.)

Benefits that will be frozen include:
The work-related activity component of employment and support allowance
Jobseeker’s allowance
Local housing allowance
Universal credit
Tax credits
Child benefit
Income support
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Alberich
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I had no idea that such a punitive tax rate was levied in the first place!!! 55%!!! Sheesh!!!!
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Stan Still
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papasmurf
Sep 29 2014, 12:49 PM
Stan Still
Sep 29 2014, 12:43 PM
Yes we must not force young fit men and women into work should we, the taxpayers can afford it after all can't we.
Sorry but I can see any relevance of that to my comments. My only reply is if they are getting at least the minimum wage for the forced labour I have no objection as long it does not put other working people out of a job.
I am forced to work to pay my way to keep me and mine so are millions of others, I have no objections if the fit and able do the same, the bonus being it frees up cash to look after those that are not fit and able better.
Edited by Stan Still, Sep 29 2014, 04:34 PM.
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Stan Still
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Alberich
Sep 29 2014, 02:29 PM
I had no idea that such a punitive tax rate was levied in the first place!!! 55%!!! Sheesh!!!!
Yep savings and pensions are classed as unearned income, the fact that you had to work in the first place to save anything does not come into the equation
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RJD
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Stan Still
Sep 29 2014, 12:39 PM
papasmurf
Sep 29 2014, 07:34 AM
I have had to deal with several relatives estates involving pensions, and no tax liability has been involved.
I assume there is some kind of high(ish) threshold involved so most people will not have been effected anyway, and the change will only benefit a few (relatively speaking,) people.
If you had read the article you would not have assumed ( guessed) wrongly as I understand it means that if the person who dies is 75 or over, beneficiaries will pay only the usual income tax rate when they withdraw the money, as they would with any pension.

If the person who dies is under 75, there will be no tax to pay at all it will benefit all those who have saved and wish to leave more to their children and grandchildren to give them a better start in life.



Looks like another change to my Will.
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RJD
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papasmurf
Sep 29 2014, 12:49 PM
Stan Still
Sep 29 2014, 12:43 PM
Yes we must not force young fit men and women into work should we, the taxpayers can afford it after all can't we.
Sorry but I can see any relevance of that to my comments. My only reply is if they are getting at least the minimum wage for the forced labour I have no objection as long it does not put other working people out of a job.
The NMW for a man plus wife and two kids is worth ~£26,000 PA. Which is more than the average wage.
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RJD
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Alberich
Sep 29 2014, 02:29 PM
I had no idea that such a punitive tax rate was levied in the first place!!! 55%!!! Sheesh!!!!
Has been for a long time, but if your Widow leaves it in the Pension Plan she will not suffer any reduction, it is only if she needs to en-cash in order to fund a Toyboy, then she is penalised.
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Stan Still
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Perhaps not a good time to tell Papasmurf that another of my pension funds matured last week so lets keep in just between me and you !jk!
Edited by Stan Still, Sep 29 2014, 05:08 PM.
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Pro Veritas
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More tax-cut for the middle and upper classes.

More austerity for the working class.

Yes, the Nasty Party are out to rape the poor... ...again.

All The Best
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papasmurf
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RJD
Sep 29 2014, 04:33 PM
The NMW for a man plus wife and two kids is worth ~£26,000 PA. Which is more than the average wage.
Only if they are working full time. (Which is a rarity.)
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papasmurf
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Pro Veritas
Sep 29 2014, 05:59 PM


More austerity for the working class.

Yes, the Nasty Party are out to rape the poor... ...again.

All The Best
According to a Tory party spokesman the new batch of austerity effect 10 million people. (Who are not likely to vote Tory.)
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johnofgwent
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It .. It is GREEN !!
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Alberich
Sep 29 2014, 02:29 PM
I had no idea that such a punitive tax rate was levied in the first place!!! 55%!!! Sheesh!!!!
I am fairly sure a similarly punitive arrangement has existed for many years where a company pension scheme is over funded.

And it is not only pensions. When I started out on my own I was scared stiff of suffering the sort of accident that befell Christoper Reeve. I asked Norwich Union what I could do, they said for about a tenner a month my ltdco could insure me until state retirement age against any sort of injury that left me 12 months later alive but unable to climb a ladder to paint the guttering. The premium was so low because 99.9% of people getting that hurt either recover fully inside a year .. or die - and i had quite separate arrangements to handle those two. The money was a lump paid to the ltdco that it could then spend as it wished .. on me of course !!

A while later my accountant told me if I were to be able to claim on that, if i died before retirement age my estate would be slapped by a bill from the revene for something like 65% of the last year's payment.

Bastards the lot of them.

TRADESMEN !! REMEMBER -- CASH is TAX FREE and while the tax bastards play this sort of game is anyone surprised such sentiment exists ...
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Deleted User
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I thought that if you die any time after claiming you private pension it was lost, unless you made the provision that your wife gets some or all of it after you die. This is all news to me.
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Stan Still
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Sep 29 2014, 05:59 PM
More tax-cut for the middle and upper classes.

More austerity for the working class.

Yes, the Nasty Party are out to rape the poor... ...again.

All The Best
Anyone in work would be foolish not make some provision for their old age by starting a pension and just simply relying on the state pension to keep them in their old age, in fact the Coalition has made it easier than ever for more workers to join a work based pension fund.
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Affa
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Don't you have to have a well paid job to be able to afford a pension pot?
How does someone on the MW and claiming tax credits manage to save for retirement?

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papasmurf
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Affa
Sep 30 2014, 07:26 PM
Don't you have to have a well paid job to be able to afford a pension pot?

No but you need a big pension pot to be liable for the 55% tax that Osborne just scrapped, it did not apply to many people anyway.
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Pro Veritas
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Stan Still
Sep 30 2014, 06:45 PM
Anyone in work would be foolish not make some provision for their old age by starting a pension and just simply relying on the state pension to keep them in their old age, in fact the Coalition has made it easier than ever for more workers to join a work based pension fund.
Some people in work can't afford to make such provision.

Because the Tory feckwits really haven't figured out that the way out of poverty is to provide jobs that pay sufficiently well to prevent reliance on in work benefits.

We need more jobs, and better paid jobs.

Not less taxes.

All The Best
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Pro Veritas
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Affa
Sep 30 2014, 07:26 PM
How does someone on the MW and claiming tax credits manage to save for retirement?

Or, like me, on NMW but unable to claim tax credits.

All The Best
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Steve K
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Pro Veritas
Sep 30 2014, 08:21 PM
Affa
Sep 30 2014, 07:26 PM
How does someone on the MW and claiming tax credits manage to save for retirement?

Or, like me, on NMW but unable to claim tax credits.

All The Best
quite

I've even seen it said that below a certain income level you are better off not saving for retirement. As you say we need to create more worthwhile jobs and lots of them.

Mandating that there be no low paid jobs is not the way to do that, taxing talent to leave the country isn't the way to do that
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jeevesnwooster
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Steve K
Sep 30 2014, 08:33 PM
Pro Veritas
Sep 30 2014, 08:21 PM
Affa
Sep 30 2014, 07:26 PM
How does someone on the MW and claiming tax credits manage to save for retirement?

Or, like me, on NMW but unable to claim tax credits.

All The Best
quite

I've even seen it said that below a certain income level you are better off not saving for retirement. As you say we need to create more worthwhile jobs and lots of them.

Mandating that there be no low paid jobs is not the way to do that, taxing talent to leave the country isn't the way to do that
A balanced post, well said.

Not many people seem to have an overview like you do, although I disagree with a fair portion of what you say I always respect the fact you are open-minded and willing to look at the bigger picture
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Steve K
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ta, I try but I know some find me trying
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