UK Chancellor Rachel Reeves is facing pressure to reform pension tax relief, potentially capping the amount retirees can withdraw tax-free. The Institute for Fiscal Studies (IFS) suggests limiting the cap to £100,000, arguing it would raise £2 billion annually and be fairer to those with smaller pensions.
Rachel Reeves is thought to be mooting a shake-up of pension tax relief , as the IFS suggests an £100k cap on lump sum s people can take
But what is the real impact of this and what are the other ways Ms Reeves could use to target the pension pots of wealthy savers?The IFS has argued that limiting the cap to £100,000 was fair, because it is “hard to justify” offering subsidies to savers who are already relatively wealthy.
He said: “There are better ways of cutting the cost of pension tax relief than an across-the-board cut. Many millions of people on modest incomes have started saving into a pension since the beginning of automatic enrolment into workplace pensions.“If the Government simply lowered this percentage to less than 25 per cent, it would be hitting the pension prospects of millions of ordinary people and not simply the well off.
Pension Tax Relief Rachel Reeves IFS Lump Sum Retirement Savings
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Reeves faces Labour mutiny over winter fuel allowance as energy price cap risesThe Chancellor is also under pressure to extend the Household Support Fund which supplies cash grants to help the vulnerable
Weiterlesen »
Rachel Reeves promises Scots lower energy bills despite rise in price capIn an interview with the Record, the Chancellor also urged the SNP Government to take 'responsibility' for their budget cuts.
Weiterlesen »
Two-child benefit cap set to stay as Reeves faces surprise £3bn debt riseChancellor also expected to introduce tax rises and cuts to public spending in the wake of higher borrowing
Weiterlesen »
The different ways in which Labour could cut the pension tax-free lump sumRachel Reeves is thought to be mooting a shake-up of pension tax relief, as the IFS suggests an £100k cap on lump sums people can take
Weiterlesen »
Why households may face extra 10% energy bill rise on top of price cap increaseProposal to scrap standing charge and move costs to unit rate could see bills rise for 500,000 low-income households, Ofgem warns
Weiterlesen »
'Woeful' Home Office budgeting blamed for consistent overspending on asylum seekers, says IFSThe Institute for Fiscal Studies said the Home Office was getting into a 'bad habit' of submitting budgets it knows won't cover its costs on asylum seekers.
Weiterlesen »