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Post by Pacifico on Mar 7, 2023 11:46:07 GMT
It's sobering to think that once we had the best funded private pension system in Europe - and then the politicians fucked it up.. Possibly aided and abetted by unworkable final salary pensions, early retirements or 'pension holidays' taken by employers? Yes I well remember the Pension Hoilidays taken by employers - forced on them by HMRC who saw very large and well funded pension funds as a means of tax evasion. Politicians fucking it up again. |
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Post by dodgydave on Mar 7, 2023 14:04:25 GMT
If I remember correctly, it was because people were putting stupid amounts into their pension to avoid tax, and then retiring early.
As with most things in life, the system is the way it is because people are constantly try to game it, which forces more and more regulation.
Then we cry like babies that it isn't fair...
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Post by Toreador on Mar 7, 2023 15:52:25 GMT
If I remember correctly, it was because people were putting stupid amounts into their pension to avoid tax, and then retiring early. As with most things in life, the system is the way it is because people are constantly try to game it, which forces more and more regulation. Then we cry like babies that it isn't fair... There were limits on how much you could put into a pension fund and among other things it depended on age, the older you got the more you could pay in. |
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Post by Toreador on Mar 7, 2023 15:54:41 GMT
Last month I had two letters that arrived together, one was from the DWP telling me of an increase in my State Pension £17.45 a week, which cheered me up somewhat. Then I opened the second letter from HMRC my new tax code for the year telling my personal allowance is £12570 which is standard , minus my state pension which means my total tax free allowance is only £2922. I had paid all my taxes on my income for over 50 years NI for 50 years, why do they tax pensions IMHO they should be tax exempt it would improve the life a little for those who only have the State Pension to live on in their latter years, fortunately I have other pensions I paid for as well which I am also taxed on. My wife received a letter today rewarding her for becoming 80; it's 25p a week. Out for dinner tonight, bag of crisps and a sniff of the barmaid's apron. |
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Post by borchester on Mar 7, 2023 15:58:04 GMT
Last month I had two letters that arrived together, one was from the DWP telling me of an increase in my State Pension £17.45 a week, which cheered me up somewhat. Then I opened the second letter from HMRC my new tax code for the year telling my personal allowance is £12570 which is standard , minus my state pension which means my total tax free allowance is only £2922. I had paid all my taxes on my income for over 50 years NI for 50 years, why do they tax pensions IMHO they should be tax exempt it would improve the life a little for those who only have the State Pension to live on in their latter years, fortunately I have other pensions I paid for as well which I am also taxed on. My wife received a letter today rewarding her for becoming 80; it's 25p a week. Out for dinner tonight, bag of crisps and a sniff of the barmaid's apron.  |
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Post by Pacifico on Mar 7, 2023 18:12:58 GMT
If I remember correctly, it was because people were putting stupid amounts into their pension to avoid tax, and then retiring early. As with most things in life, the system is the way it is because people are constantly try to game it, which forces more and more regulation. Then we cry like babies that it isn't fair... Not really - the companies were forced to stop contributions when the funds were doing well due to the Stock Market boom. The funds were notionally over funded for their prospective payouts - but of course when the Stock market stopped doing well a lot of funds then went into deficit. |
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Post by johnofgwent on Mar 7, 2023 19:06:32 GMT
Yes I remember Brown well for his raid on Pension funds Was his 'raid' a tax on unearned income? IIRC it was the Tories who started the ball rolling by ensuring tax was paid on interest made on Bank accounts. His ‘raid’ was DOUBLE TAXATION The Bank Interest of which you refer was a scam whereby tax paid by the bank was treated as taxed income you did not have to declare as income on your tax return and get taxed on. The rate of tax imposed was lower than that in force on income tax, meaning anyone in work earning more than the threshold benefitted. Barclays and Lloyds at the time both had savings accounts in branches in the channel islands which any person not earning an income sufficient to consume a tax allowance could open and operate through a cashpoint card usable fee free in any UK cash machine. I opened two - one for each of my daughters - and dad opened seven - one for each of his grandchildren - into which he was legally entitled to dump capital sufficient to earn a thousand pounds of interest per account per year. These accounts were widely advertised and completely legal. Interest was paid gross in full and you had to declare it to the revenue who could do sod all as long as the total interest when added to the other income of the child or not-enough-tax payer did not breach the then taxable allowances. If it did you paid tax on the excess. I cant be held responsible for people who failed to read the small print in the branches, and neither can the government - or opposition - whose ministers - or shadow ministers - took full advantage of these schemes. |
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Post by Handyman on Mar 8, 2023 19:41:50 GMT
Last month I had two letters that arrived together, one was from the DWP telling me of an increase in my State Pension £17.45 a week, which cheered me up somewhat. Then I opened the second letter from HMRC my new tax code for the year telling my personal allowance is £12570 which is standard , minus my state pension which means my total tax free allowance is only £2922. I had paid all my taxes on my income for over 50 years NI for 50 years, why do they tax pensions IMHO they should be tax exempt it would improve the life a little for those who only have the State Pension to live on in their latter years, fortunately I have other pensions I paid for as well which I am also taxed on. My wife received a letter today rewarding her for becoming 80; it's 25p a week. Out for dinner tonight, bag of crisps and a sniff of the barmaid's apron.  |
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Post by Handyman on Mar 8, 2023 19:50:55 GMT
Possibly aided and abetted by unworkable final salary pensions, early retirements or 'pension holidays' taken by employers? Yes I well remember the Pension Hoilidays taken by employers - forced on them by HMRC who saw very large and well funded pension funds as a means of tax evasion. Politicians fucking it up again. Brown hit Company Final Pensions and other Private pensions for 5 billion a year , he wanted to grab 8 billion but even Blair would not allow that |
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Post by Steve on Mar 8, 2023 22:34:28 GMT
How come 13 years of Tory government hasn't reversed that Brown removal of a questionable tax exemption then?
Because it made sense perchance?
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