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[Varche]

Well I think I will be better off dead under George Osbornes new tax rules?! There is something you don't expect to ever hear yourself say.

http://www.bbc.co.uk/news/uk-politics-29406191

[cleggy]

SWMBO is still working and gets death in service of thousands, all mine Better off dead NO! she's nice to me, besides the stropy stuff.

[Lizzie_Zoom]

I'm already using my company pension and it's spend, spend ,spend................................no, not really but..........

[Vamps]

SWMBO is still working and gets death in service of thousands, all mine Better off dead NO! she's nice to me, besides the stropy stuff.

I have that as well, well, I guess I don't get it.......

[jonathanh]

another load of rubbish from that man.

The reality is that very very few people ever worried about paying this tax - it was only ever relevant for those who had large pension post anyway.  This that did have undrawn funds over 75 simply managed around the tax - by drawing their funds or paying it as taxable income to dependents. 

Anyway, nice headline but no substance.  Useful to cover up Mr Paisley pajamas however

[LC0112G]

Just shows how little people understand pensions.

It doesn't mean anything to those already with an annuity, state pension, final salary pension or some occupational pensions. This change only affects people who have a crystallised pension in drawdown (typically early retirees at 55-65), or uncrystallised pensions for those over 75. Spouses and dependent children already could inherit these tax free as pensions. Others were charged 55% tax - and it's only these others that may benefit. If you don't know what a crystallised/uncrystallised drawdown pension is, then chances are it doesnt affect you.

So what happens after these changes? Say a rich elderly relative dies and leaves you a pension pot of £200K. This is paid to you and taxed at your marginal rate. If you earn the national average wage of £25K, then that makes your income for the year £225K, so you're taxed at 0% on the first £10K, 20% on the next £30K, 40% on the next £110K, and 45% on the remaining £75K. So a tax take of around £84K. And you'll probably lose any child benefit for that year too.

Probably the best thing you could do is stick the money into your own pension pot, altough you will be limited to £25 p/a due to your wage.

The change probaby is good news for some, but I don't think it deserves headline news treatment because it'll affect hardly anyone.

[Lizzie_Zoom]

SWMBO is still working and gets death in service of thousands, all mine Better off dead NO! she's nice to me, besides the stropy stuff.

I have that as well, well, I guess I don't get it.......

Ah yes, three quarters of your salary in death; my husband had that in his pension plan, but then we were divorced and I won't see a penny of his money now!! The mortgage was also ready to be paid off on his death! 

[Kevin Wood]

SWMBO is still working and gets death in service of thousands, all mine Better off dead NO! she's nice to me, besides the stropy stuff.

I have that as well, well, I guess I don't get it.......

Ah yes, three quarters of your salary in death; my husband had that in his pension plan, but then we were divorced and I won't see a penny of his money now!! The mortgage was also ready to be paid off on his death! 

How is that patio, Lizzie?

 

[Lizzie_Zoom]

SWMBO is still working and gets death in service of thousands, all mine Better off dead NO! she's nice to me, besides the stropy stuff.

I have that as well, well, I guess I don't get it.......

Ah yes, three quarters of your salary in death; my husband had that in his pension plan, but then we were divorced and I won't see a penny of his money now!! The mortgage was also ready to be paid off on his death! 

How is that patio, Lizzie?

 

It has steam trains running over it Kevin !!

[Kevin Wood]

It has steam trains running over it Kevin !!

Nice touch.

[Marks DTM Calib]

Death in service of ten times salary here ......slightly concerned seeing as I have a long and rather deep hole in the back garden at the moment.

On the tax subject, I suspect it may have more impact given the new options for pensions e.g. not having to buy an annuity

[Kevin Wood]

Yes, it might not change much today, but might open up an inheritance tax avoidance scheme, depending on the small print.

[LC0112G]

Death in service of ten times salary here ......slightly concerned seeing as I have a long and rather deep hole in the back garden at the moment.

On the tax subject, I suspect it may have more impact given the new options for pensions e.g. not having to buy an annuity

You haven't had to buy an annuity since 2006, though many people were unaware even though successive governments re-announced the same change several times.

[LC0112G]

Yes, it might not change much today, but might open up an inheritance tax avoidance scheme, depending on the small print.

Not sure how that can work. £40K p/a limit on gross contributions, and a £1.25M lifetime allowance, plus withdrawls at marginal tax rates (45% on high amounts), versus 40% Inheritance tax on amounts over £325K per person/£650K per couple? No doubt someone will find a use for it, but I can't see anything that will help mere mortals like us.

[ronnyd]

This isn,t for the likes of us who drive around in cars which are (at best)  ten / eleven years old. Just another way
Georgie boy can help his rich mates get even richer.