Retirement
Chancellor looks to up tax on pensions of rich
The chancellor has promised to balance a planned welfare squeeze – needed to achieve a futher £10bn of benefit savings by 2015-16 – by imposing new taxes on the wealthy.
Although Osborne’s aides insist this is not part of a “trade-off” with the Tories’ Lib Dem coalition partners, the search for new revenues is coming to a head in the run-up to his Autumn Statement on 5 December. according to the Financial Times.
Osborne has to send his final proposals to the independent Office for Budget Responsibility by 28 November.
The Chancellor met senior coalition colleagues on Monday to discuss options. Officials close to the talks said that moves to reduce the tax relief available for wealthier voters on their pensions were “on the table”.
Liberal Democrats have long argued for such restrictions. In his first emergency Budget in 2010, Mr Osborne cut the maximum annual pension contribution exempt from tax from £255,000 to £50,000.
A new threshold of £40,000 is expected to raise about £600m, while a further cut in the threshold to £30,000 would raise £1.8bn, but bring howls of protest from traditional Tory voters.
Tag Box
There are 0 Comment(s)
Why NS&I may need to trim interest rates for millions of savers
Savers continued to plough money into National Savings and Investment (NS&I) in April, though at a slower...
NS&I makes it easier to top up Premium Bonds
NS&I has started rolling out an alternative way to make payment, which should make it easier and more secu...
Move fast as one-year savings rates hit 5.25% PLUS all the week’s best savings accounts
A new one-year fixed-rate account has launched paying 5.25% from National Bank of Egypt, through Raisin UK.
Ryanair jetting towards US flights for £10
Ryanair is on course to achieve its long-held ambition of offering transatlantic flights to the US – and the...
Investing in car parks: a good vehicle for income seekers?
As the search for income continues, many investors are turning to alternatives, with car parks becoming increa...
A quick guide to guarantor loans – in association with Guarantor Loan Comparison
Considering a guarantor loan or becoming a guarantor yourself? Read our essential guide...
Results round-up: Companies to watch this week
Mulberry and more will face the music this week.
Product launches of the week
Select Property Group, Schroders, Leeds Building Society and more have exciting news this week.
Money Tips of the Week
© AE3 Media Ltd, Floor 7, Lincoln House, 296 - 300 High Holborn, London WC1V 7JH, Company.