Budget

[Eric Cartman]

Come on, I know we are all miserable and poor but there needs to be a thread.

A cynic might say the tapering in of the childcare support is a trap for Labour. On the face of it a good thing but isn't it telling that it is now accepted (and by some championed as an example of gender equality) that the average family with one young child can't support themselves on one income.

Pension thing just baffles me although I get their humdrum reasoning. Surely the purpose of tax relief on pension contributions is to incentivise the masses to save for an adequate retirement and not rely on the state. Whilst the current system is clunky, I just can't see a justification for giving tax relief for the richest to build enormous pensions. Essentially saying 'hey you know we made you so rich you could retire in your 50s, heres some more money for you!'

Something else bla bla about fuel duty. Anything else of note?

[Taunton Blue Genie]

Re: Budget

I am no expert in financial matters but if such pension pots are taxable when eventually claimed, is it a big deal?

[Eric Cartman]

Re: Budget

I am no expert in financial matters but if such pension pots are taxable when eventually claimed, is it a big deal?

Well you could use that kind of justification in so many different ways. I think 25% can be taken tax free, regardless of the size of that, which is also baffling but there will no doubt be people who know more than me about this on here.

[Swiss Peter]

Re: Budget

Well you could use that kind of justification in so many different ways. I think 25% can be taken tax free, regardless of the size of that, which is also baffling but there will no doubt be people who know more than me about this on here.

I thought I'd avoid replying, until someone that knows what they are talking about is on

But, what the hell....

Isn't the point that anything above the Lifetime Allowance was taxed at 55% (at least at certain crystallisation events) rather than normal tax rates?

[az city]

Re: Budget

I thought I'd avoid replying, until someone that knows what they are talking about is on

But, what the hell....

Isn't the point that anything above the Lifetime Allowance was taxed at 55% (at least at certain crystallisation events) rather than normal tax rates?

I took it to be a massive giveaway to the already fabulously wealthy.

[Taunton Blue Genie]

Re: Budget

I thought I'd avoid replying, until someone that knows what they are talking about is on

But, what the hell....

Isn't the point that anything above the Lifetime Allowance was taxed at 55% (at least at certain crystallisation events) rather than normal tax rates?

Cheers for the erudition, Peter.

[az city]

Re: Budget

I am no expert in financial matters but if such pension pots are taxable when eventually claimed, is it a big deal?

I'm not a financial adviser. But here goes. Tax-free contributions allow you to benefit from a bigger principal or "pot" from the initial contribution and to defer tax liabilities to better fit with your lifetime spending.

We have a slightly different system in the US with tax-paid (Roth) pension funds which are not taxed on withdrawal and tax-free contribution pension funds where you are taxed on withdrawal.

[Taunton Blue Genie]

Re: Budget

I'm not a financial adviser. But here goes. Tax-free contributions allow you to benefit from a bigger principal or "pot" from the initial contribution and to defer tax liabilities to better fit with your lifetime spending.

We have a slightly different system in the US with tax-paid (Roth) pension funds which are not taxed on withdrawal and tax-free contribution pension funds where you are taxed on withdrawal.

As someone benefitting from such a pot, I'm aware of the concept, old fruit. I just didn't understand the fine tuning, as it were. Always happy to be educated, however!

[Swiss Peter]

Re: Budget

I took it to be a massive giveaway to the already fabulously wealthy.

Well, if you have more than £1.07m in your pension pot you have the potential to do rather better out of this than with previous arrangements. So, yes, I agree. The main driver seems to be to entice older high earning NHS staff not to retire early or to come back into work if retired. If it were me, I'd retire earlier and spend the extra dough!

[JamesWales]

Re: Budget

Most boring budget in history, which is probably no bad thing after the last one

[az city]

Re: Budget

As someone benefitting from such a pot, I'm aware of the concept, old fruit. I just didn't understand the fine tuning, as it were. Always happy to be educated, however!

I wasn't being condescending. I took you at face value. How you take advantage of the tax break is very complex (depending on your circumstances including your expected longevity).

[az city]

Re: Budget

Well, if you have more than £1.07m in your pension pot you have the potential to do rather better out of this than with previous arrangements. So, yes, I agree. The main driver seems to be to entice older high earning NHS staff not to retire early or to come back into work if retired. If it were me, I'd retire earlier and spend the extra dough!

I'm sure someone is already calculating the diversion of what is currently just saving/spending into pension savings with the lifting of the lifetime maximum tax-free contributions.

I have a feeling there will be a lot of people caught out by thinking they will live forever and paying death duties.

You may well be right in terms of spend it while you can.

[life on mars]

Re: Budget

Well you could use that kind of justification in so many different ways. I think 25% can be taken tax free, regardless of the size of that, which is also baffling but there will no doubt be people who know more than me about this on here.

Up to a level. Wes Streeting wanted it abolished a few weeks back. If we get GPS, Dentist, Surgeons, Scientists to stay great.

[Taunton Blue Genie]

Re: Budget

Up to a level. Wes Streeting wanted it abolished a few weeks back. If we get GPS, Dentist, Surgeons, Scientists to stay great.

GPS can find a way.

[cyril evans awaydays]

Re: Budget

GPS can find a way.

If you just need to find a particular dentist, nothing better!