Budget - pensions what to expect?
Discussion
What does everyone think the Boy George will do on pensions next week?
As the mansion tax seems to be getting ever less likely, then concerns are increasing that the Coalition will turn to another pensions raid to try and balance the books.
Personally, I can see him stopping the 50% rate relief on pension payments.
If he goes further and stops the 40% tax relief and / or stops the up to 25% tax free sum that can be taken from a pension upon retirement then not only will he finally and irrevocably finish the work that Gordon Brown did in screwing over the UK pension industry, but he will consign the Tories to losing the next election. Rightly so, I didn't vote this shower of tossers in and will never vote Cons again as long as I live.
Note, please do not turn this thread into yet another public sector vs private sector fest.
Nor a you baby boomers have nicked all our futures replay, that has also been done to death, as will anyone taking the thread onto such tacks.
So what is the feeling?
As the mansion tax seems to be getting ever less likely, then concerns are increasing that the Coalition will turn to another pensions raid to try and balance the books.
Personally, I can see him stopping the 50% rate relief on pension payments.
If he goes further and stops the 40% tax relief and / or stops the up to 25% tax free sum that can be taken from a pension upon retirement then not only will he finally and irrevocably finish the work that Gordon Brown did in screwing over the UK pension industry, but he will consign the Tories to losing the next election. Rightly so, I didn't vote this shower of tossers in and will never vote Cons again as long as I live.
Note, please do not turn this thread into yet another public sector vs private sector fest.
Nor a you baby boomers have nicked all our futures replay, that has also been done to death, as will anyone taking the thread onto such tacks.
So what is the feeling?
Blue62 said:
I'm a bit confused here, are you referring to contributions above the tax free allowance? I understood that currently you can make contributions of up to £50k per annum without incurring a tax charge, I take it that your concern is for annual contributions above that number? My broader concern is that the continual meddling with pension legislation has reduced investor confidence and made planning for retirement a bit of a lottery, especially when they play the retrospective card. I really think there is a good case for stopping any chancellor from interfering with pension arrangements, especially for for short-term gains.
It's not contributions above the tax free allowance, it's more your second point, i.e. the constant meddling, especially if they play a retrospective card or short notice of changes. Planning is a nightmare now and if they do as Ed Balls wants and make short terms changes with little notice, ie stopping any tax relief on contributions above the 20% base rate, and tax at the relevant on any lump sum taken at date of retirement.
Not sure if he has come out and said the last one in public yet, but it is what he wants aiui from sources.
To my mind the coalition have come out and given the public sector an offer which means anyone within a certain number of years from retirement no changes. They should not then turn round and amend tax legislation without a similar degree of notice, but I have no faith in any of them.
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