25% pension pot meddling. When will this nonsense end?
Discussion
So now there's a rumour that Osborne will pull the 25% tax free allowance on pension pots being cashed. When will this government's meddling end? How do they expect people to do any long term planning when they keep moving the goalposts?
It appears to be another cash grab so he can meet his preposterous "balance tne books" target and have a chance of being elected PM next decade. Meantime, heaps of his city chums continue to get away with paying next to no corporation tax with their spurious multinational arrangements.
http://www.telegraph.co.uk/news/politics/georgeosb...
It appears to be another cash grab so he can meet his preposterous "balance tne books" target and have a chance of being elected PM next decade. Meantime, heaps of his city chums continue to get away with paying next to no corporation tax with their spurious multinational arrangements.
http://www.telegraph.co.uk/news/politics/georgeosb...
If they let you migrate your pension into a new pension ISA with no tax charge I see no problem. Given all withdrawls would be tax free anyway.
Or sounds like they will grandparent the existing system and only apply the new rules to a new Pensions ISA. Mortgage your house and roll up all your pensions contributions into this tax year!
If they dont grandparent the existing system there would be a lynching at tyburn.
Or sounds like they will grandparent the existing system and only apply the new rules to a new Pensions ISA. Mortgage your house and roll up all your pensions contributions into this tax year!
If they dont grandparent the existing system there would be a lynching at tyburn.
GT03ROB said:
What a sorry state of affairs.
Yep, sat down with accountants last week to get advice on BTL in a corporate structure. Clear as mud right now. Don't get me started on pensionsI don't get why the Tory's are so heavily penalising people for wanting to save for the future in pensions. And these are typically the people that vote Tory. Odd.
Ok if you're an MP or judge with final salary scheme though
foliedouce said:
Yep, sat down with accountants last week to get advice on BTL in a corporate structure. Clear as mud right now. Don't get me started on pensions
I don't get why the Tory's are so heavily penalising people for wanting to save for the future in pensions. And these are typically the people that vote Tory. Odd.
Ok if you're an MP or judge with final salary scheme though
Much the same position here.I don't get why the Tory's are so heavily penalising people for wanting to save for the future in pensions. And these are typically the people that vote Tory. Odd.
Ok if you're an MP or judge with final salary scheme though
It's time to take planning for retirement more seriously now I'm half way there, the current waters couldn't be much muddier with respect to what to do with my flat and pension.
The "what if" spreadsheet for my flat already has about 6 different scenarios, never mind the pension one.
Tax - as Eric says the rate of change is simply crazy. Most of the people working at HMRC are witless drones whose knowledge of the system is pitiful. HMRC can't keep up with its own tax system.
Pensions - if you can get 40% tax relief the answer is pretty clear cut; just do it. It should still be worthwhile even if he reigns in the tax free cash. Flexible drawdown allows plenty of juggling.
Overall - the problem George has latched onto is that wealthy people are motivated to save by tax breaks but most other people aren't. They see people at the bottom funded entirely by the state and say, "sod it, why should I scrimp and save while they get it all for free?". George's game plan is to reduce tax relief for the better-off while incentivising the less wealthy to save. Regrettably it's people in the middle who get nailed every time.
ISAs - I won't be in the least bit surprised if he sticks a cap on ISAs in much the same way they've capped pensions. On the other hand he might be less bothered because the tax relief isn't "up front" so can be left as a problem for a future government!
Pensions - if you can get 40% tax relief the answer is pretty clear cut; just do it. It should still be worthwhile even if he reigns in the tax free cash. Flexible drawdown allows plenty of juggling.
Overall - the problem George has latched onto is that wealthy people are motivated to save by tax breaks but most other people aren't. They see people at the bottom funded entirely by the state and say, "sod it, why should I scrimp and save while they get it all for free?". George's game plan is to reduce tax relief for the better-off while incentivising the less wealthy to save. Regrettably it's people in the middle who get nailed every time.
ISAs - I won't be in the least bit surprised if he sticks a cap on ISAs in much the same way they've capped pensions. On the other hand he might be less bothered because the tax relief isn't "up front" so can be left as a problem for a future government!
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