ITV debate
- Thread starter Murdochcat
- Start date
Hunt hasn't told lies when he says tax will go up under Labour. Just neglects to say it wont matter who is in power. This is down to the personal tax allowances being locked for several years. Breaking that messes up the fiscal rules.
So what are these "extra taxes" that you have already paid on?
If we, and the West in general, are stuck in long term low growth, and with ageing populations, then there are going to be terribly difficult choices and decisions, on taxes and spending.
Which taxes are you particularly worried about? Do you mean a raid on pensions perhaps, or an increase in inheritance tax.
John don't you remember Gordon Browns pension raid?
www.thisismoney.co.uk
Brown's pension tax raid was the most idiotic decision I can recall
Reverse Brown's move. It would cost hardly anything. Jeremy Hunt could do it, and Rachel Reeves could show Labour would be on the side of pensioners by supporting it.
Funnily enough, I do remember the end of the dividend relief on pension funds.
However it is an extremely trivial cost, and you are unlikely to have noticed the difference it made.
Let's suppose you had a pension fund worth £100,000
Your pension company scooped out 2% a year to pay for the Chairman's Rolls Royce, plus concealed transaction costs, say £2,500 total
your fund was 60% invested in equities paying average 2% in dividends £1,200
dividend tax was (I can't remember, let's say 20%)
20% of 2% of 60% of £100,000 was £240 a year
In year 1 your fund went up by 15%. That's £15.000
In year 2 it went down by 10%. Thats £11,500
In year 3 it went up by 25%. That's £26,125
In which of those years would you have noticed £240 more or less?
However it is an extremely trivial cost, and you are unlikely to have noticed the difference it made.
Let's suppose you had a pension fund worth £100,000
Your pension company scooped out 2% a year to pay for the Chairman's Rolls Royce, plus concealed transaction costs, say £2,500 total
your fund was 60% invested in equities paying average 2% in dividends £1,200
dividend tax was (I can't remember, let's say 20%)
20% of 2% of 60% of £100,000 was £240 a year
In year 1 your fund went up by 15%. That's £15.000
In year 2 it went down by 10%. Thats £11,500
In year 3 it went up by 25%. That's £26,125
In which of those years would you have noticed £240 more or less?
We might get a trivial amount if the tax allowance increase for people on full state pensions goes through. This would show if you get any state pension along with a private one. The state payment is removed from the personal tax allowance. My brother retired more recently and decided to go draw down. Same applies. I retired before the state retirement age. Before I reached that I had the full tax allowance. I have an occupational derived index linked annuity style pension. I was in a company pension
but when I was sold the pension pot went into a new scheme.TBH I cant see much chance of any gov hitting pensioners. Things related to the state one - well things in that area do change at times but remove the triple lock? Have people on that and nothing else tax them? Others with private style ones treatment will be no different to a salary receiver.
NI - retired people don't pay it. If it was set to 0 and added to income tax they probably would be.
He can't.
I really don't have a problem paying tax on a pension or workplace and government pension. What I have a problem is the government sees as a financial pot they can dip into to fund their programmes either Tory, Labour or the other less serous parties.
There was significant factor on that. Misuse of funds especially company ones. Deliberately intending to make them over subscribed with the view of taking money out at some point. So as I understand it excess over actuary levels was taxed. This more or less put a complete end to company pensions - no new members in the one I was in for instance.