Public sector workers' 'gold-plated' pensions will be spared from Rachel Reeves inheritance tax Budget raid in move that 'widens the gulf' with private sector
4 months, 3 weeks ago

Public sector workers' 'gold-plated' pensions will be spared from Rachel Reeves inheritance tax Budget raid in move that 'widens the gulf' with private sector

Daily Mail  

Public sector workers will avoid the ravages of Rachel Reeves' Budget tax grab on pensions at the expense of those in the private sector, experts have warned. However just 7 per cent of private sector workers have DB pensions, the majority instead have defined contribution pensions, which can be inherited tax free until now. 'Some families of private sector workers will find themselves on the sharp end of an unexpected tax bill, whereas public sector workers can continue to provide for their spouses in the event of their passing. 'Assuming the whole fund is subject to 40 per cent inheritance tax, and the beneficiary pays income tax at 45 per cent on the remainder, this appears to give rise to an effective 67 per cent tax rate on taxable pension death benefits.'

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History of this topic

Rachel Reeves plots pensions industry 'big bang' for investment as she scrambles to stop Budget squeezing growth... while poll finds four in 10 Brits believe high-tax package WILL hit their pockets
4 months, 2 weeks ago

Rachel Reeves plots pensions industry 'big bang' for investment as she scrambles to stop Budget squeezing growth... while poll finds four in 10 Brits believe high-tax package WILL hit their pockets

Daily Mail  

Rachel Reeves has signalled a pension industry 'big bang' to free up billions for Labour's infrastructure splurge. Rachel Reeves has signalled a pension industry 'big bang' to free up billions for Labour 's infrastructure splurge Your browser does not support iframes. 'In a couple of weeks' time I will deliver my first Mansion House speech setting out my ambitions for …

Why inheritance tax changes for pensions means a double hit for beneficiaries
4 months, 3 weeks ago

Why inheritance tax changes for pensions means a double hit for beneficiaries

The Independent  

Inheritance tax is an odd one; many worry about it but only a tiny minority ever end up paying it. Unspent pension savings do not currently count towards the IHT threshold, creating an incentive for wealthy individuals to save through pensions as a means of lowering their kids’ bills. For families inheriting larger pension pots, this will lead to significant …

Budget tax raid will mean lower private sector pay rises, admits Reeves
4 months, 3 weeks ago

Budget tax raid will mean lower private sector pay rises, admits Reeves

The Telegraph  

Rachel Reeves has admitted that private sector workers will be paid less as a result of her Budget tax raid to fund a massive expansion of the state. Public sector employees – many of whom have already been granted inflation-busting pay rises by the Government – are being spared from the raid. It is likely to deepen a rift between …

Labour's tax bomb leaves Britons £300 worse off: UK faces highest tax burden ever, businesses are battered by the Budget, wages will fall and inflation will rise
4 months, 3 weeks ago

Labour's tax bomb leaves Britons £300 worse off: UK faces highest tax burden ever, businesses are battered by the Budget, wages will fall and inflation will rise

Daily Mail  

Britain's growth prospects took a dive last night after Rachel Reeves' £40 billion tax bomb. In the first Labour Budget for 14 years, Ms Reeves: Launched a £25 billion raid on employers' National Insurance, breaking a manifesto pledge not to raise a levy she previously called a 'jobs tax'; Announced an immediate £25 billion cash injection for the NHS, despite …

Pensions to be brought into inheritance tax scope, says Reeves
4 months, 3 weeks ago

Pensions to be brought into inheritance tax scope, says Reeves

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Chancellor Rachel Reeves said she will close the “loophole” …

Families face inheritance tax raid on pensions - what it means for your wealth
4 months, 3 weeks ago

Families face inheritance tax raid on pensions - what it means for your wealth

Daily Mail  

Inheritance tax: Pensions will be included in the assets that count towards death duties from April 2027 Chancellor Rachel Reeves has launched an inheritance tax raid on savers in the Budget by making pensions liable for the levy. Pensions will be included in the assets that count towards 40 per cent inheritance tax from April 2027, throwing family legacy plans …

Private vs public sector pensions - how to avoid a race to the bottom: This is Money podcast
4 months, 3 weeks ago

Private vs public sector pensions - how to avoid a race to the bottom: This is Money podcast

Daily Mail  

Of all the tax-raising ideas in Rachel Reeves' 'running out of options' Budget, one stood out for how widely it was shot down: charging employer national insurance on pension contributions. This would leave only private sector employers exposed, their workers' pensions potentially dented and taxpayers picking up the tab to protect more generous public sector schemes. Public sector defined benefit …

How Rachel Reeves' budget could make the gulf between public and private pensions even wider
4 months, 3 weeks ago

How Rachel Reeves' budget could make the gulf between public and private pensions even wider

Daily Mail  

A huge chasm between generous public sector pensions and squeezed private sector pensions could be blown even wider next week. Chancellor Rachel Reeves is expected to protect public sector workers from a raid on employers’ pension contributions in the Budget. Chancellor Rachel Reeves is expected to protect public sector workers from a raid on employers’ pension contributions in the Budget …

Can Rachel Reeves avoid a Budget omnishambles?
5 months ago

Can Rachel Reeves avoid a Budget omnishambles?

The Independent  

Some mixed news for Rachel Reeves with one week to go until her Budget… and, on balance, it’s encouraging. She has repeated her well-known guarantees on taxes on “working people” – income tax, VAT, and national insurance, as well as freezing corporation tax rates. Even so, Reeves will probably still have to move stealthily on personal taxes by further freezing …

Tax on high earners ruled out as Rachel Reeves looks to plug £40bn Budget black hole
5 months ago

Tax on high earners ruled out as Rachel Reeves looks to plug £40bn Budget black hole

The Independent  

Sign up for the View from Westminster email for expert analysis straight to your inbox Get our free View from Westminster email Get our free View from Westminster email SIGN UP I would like to be emailed about offers, events and updates from The Independent. But the government line of not commenting on any speculation regarding questions about the Budget …

If not on ‘working people’, where will the tax burden fall in Rachel Reeves’s Budget?
5 months ago

If not on ‘working people’, where will the tax burden fall in Rachel Reeves’s Budget?

The Independent  

As Rachel Reeves prepares to unveil her first Budget, a clear picture is emerging of how she intends to raise the money to ensure there is not another wave of austerity. Reeves’s hands are tied, to a certain extent, because of pledges not to raise the current rates of VAT, income tax, national insurance and corporation tax. Rachel Reeves will …

Rachel Reeves warned inheritance tax plans will backfire
5 months ago

Rachel Reeves warned inheritance tax plans will backfire

The Telegraph  

The Labour manifesto promised that the party would “not increase taxes on working people” and Ms Reeves now appears to be struggling to raise enough within those constraints. The Chancellor is also expected to target inheritance tax in the budget by attempting to raise £1billion by removing exemptions for businesses and agricultural land. Nullifying the change However, Maxwell Marlow, director …

Rachel Reeves eyes inheritance tax raid on aristocrats and landowners
5 months ago

Rachel Reeves eyes inheritance tax raid on aristocrats and landowners

The Telegraph  

The Chancellor is set to hit aristocrats and other wealthy property owners with a £1 billion inheritance tax raid in her Budget. She could also tackle agricultural property relief, which is designed to help farmers pass land on but has increasingly been used by the wealthy to avoid inheritance tax. Business relief currently allows the rich to halve inheritance tax …

Rachel Reeves set to keep income tax thresholds frozen... But claims it's NOT a manifesto breach because it's not an increase!
5 months ago

Rachel Reeves set to keep income tax thresholds frozen... But claims it's NOT a manifesto breach because it's not an increase!

Daily Mail  

Rachel Reeves was last night accused of breaking her promises to the British people as she is expected to extend a freeze on income tax thresholds in the Budget. Labour ruled out increases to taxes for ‘working people’ such as VAT, income tax and National Insurance as part of its election manifesto, so it has been targeting funds from historically …

Budget backlash intensifies as Rachel Reeves warned over inheritance tax hike
5 months ago

Budget backlash intensifies as Rachel Reeves warned over inheritance tax hike

The Independent  

Sign up for the View from Westminster email for expert analysis straight to your inbox Get our free View from Westminster email Get our free View from Westminster email SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Chancellor Rachel Reeves has been warned that her plan to hike …

The real problem facing Rachel Reeves over inheritance tax...
5 months ago

The real problem facing Rachel Reeves over inheritance tax...

The Independent  

Suitably, as Halloween approaches, the “death tax” is spooking Britain again. The pre-Budget scuttlebutt suggests inheritance tax is in Rachel Reeves’s sights as she battles to plug a fiscal black hole that could be as high as £40bn. HM Revenue & Customs figures for the 2021-22 tax year show that just 4.39 per cent of UK estates – 27,800 – …

Inheritance tax to rise in Budget as Reeves plans to hit well-off
5 months ago

Inheritance tax to rise in Budget as Reeves plans to hit well-off

The Independent  

Sign up for the View from Westminster email for expert analysis straight to your inbox Get our free View from Westminster email Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Unfortunately it looks like it will be people who have …

Rachel Reeves to push forward with £3bn sickness benefits cut in Budget
5 months ago

Rachel Reeves to push forward with £3bn sickness benefits cut in Budget

The Independent  

Sign up for the View from Westminster email for expert analysis straight to your inbox Get our free View from Westminster email Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Asked why Labour was pressing ahead with plans made by …

Rachel Reeves calls off pension tax relief raid amid warnings it would impact public sector workers
5 months, 2 weeks ago

Rachel Reeves calls off pension tax relief raid amid warnings it would impact public sector workers

Daily Mail  

Rachel Reeves has called off her planned pension tax raid after being warned that it would unfairly impact up to a million teachers, nurses and other public sector workers. The original proposals would have seen public sector workers on £50,000 a year face an additional annual tax bill of £1,000. The Chancellor has cancelled a planned tax relief reduction on …

Reeves warned against ‘perilous’ pension and capital gains tax rises
6 months ago

Reeves warned against ‘perilous’ pension and capital gains tax rises

The Telegraph  

Rachel Reeves has been warned of the “perilous” impact of increasing pensions and capital gains taxes, as economists claimed this would damage living standards, discourage saving and harm growth. It said that launching a blanket raid on capital gains would also backfire, with tax increases acting as an “ever-greater drag on saving and investment”. ‘Jumbled tax system’ The IFS said: …

Starmer’s blueprint for a tax war on pensioners
6 months, 3 weeks ago

Starmer’s blueprint for a tax war on pensioners

The Telegraph  

Figures from the Office for Budget Responsibility show that in 2010, when David Cameron defeated Gordon Brown, pensioner benefits cost the Treasury just under £86 billion. Stuart Adam, senior economist at the independent Institute for Fiscal Studies, says: “Overall, on average, the older generation, the baby boomers, have done quite well out of the economy and have done quite well …

How Labour could raise taxes as Starmer admits budget will be ‘painful’
6 months, 3 weeks ago

How Labour could raise taxes as Starmer admits budget will be ‘painful’

The Independent  

Sign up for the View from Westminster email for expert analysis straight to your inbox Get our free View from Westminster email Get our free View from Westminster email SIGN UP I would like to be emailed about offers, events and updates from The Independent. open image in gallery Chancellor Rachel Reeves will deliver her first Budget in October On …

Pensioners hit by Reeves’s plan to fill £22bn black hole
7 months, 3 weeks ago

Pensioners hit by Reeves’s plan to fill £22bn black hole

The Independent  

Sign up for the View from Westminster email for expert analysis straight to your inbox Get our free View from Westminster email Get our free View from Westminster email SIGN UP I would like to be emailed about offers, events and updates from The Independent. open image in gallery Reeves delivers the results of her review of the nation’s finances …

Labour will hit elderly with ‘retirement tax’, claim Tories
9 months, 3 weeks ago

Labour will hit elderly with ‘retirement tax’, claim Tories

The Telegraph  

Labour would hit the elderly with a “retirement tax”, the Tories have claimed, after Rachel Reeves refused to match their plan to keep the state pension tax-free. Laura Trott, the Chief Secretary to the Treasury, said Labour’s stance would mean thousands of retirees being dragged into paying income tax from 2027. Rishi Sunak promised to raise the income tax threshold …

New Rachel Reeves adviser said ‘codger’ pensioners should pay more taxes
11 months ago

New Rachel Reeves adviser said ‘codger’ pensioners should pay more taxes

The Telegraph  

Rachel Reeves has been criticised for appointing an adviser who suggested “codger” pensioners should face higher taxes and be stripped of free TV licences. I am part of an under-taxed generation, so I’m afraid we are going to have to look at the more senior members of society.” Sir Edward then cited “great analysis” by the Financial Times which he …

This is one proposed pension raid on the rich that isn’t justified
9 years, 1 month ago

This is one proposed pension raid on the rich that isn’t justified

The Independent  

The best of Voices delivered to your inbox every week - from controversial columns to expert analysis Sign up for our free weekly Voices newsletter for expert opinion and columns Sign up to our free weekly Voices newsletter SIGN UP I would like to be emailed about offers, events and updates from The Independent. In recent years, the Chancellor has …

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