Spring Budget 2023

[Deleted User 234324]

Well the abolishment of the LTA is certainly going to do one thing.

Increase the rich/poor divide of pensioners even further.

 

[robj20]

Actually that's untrue. Fuel duties apply fairly equally across income deciles, with the poorest paying the lowest share by proportion of income (1.5%) and those just above middle paying the most (2.7%). Fuel duty rises are vital to incentivise the purchase and use of more efficient vehicles and reduced use of available vehicles. We cannot simply ignore the massive negative impact of higher fuel use.

Also, I don't oppose higher tobacco duties because of their impact on the poor (although that's true); I oppose them because I believe they are unjustifiably punitive and achieve no more reduction in smoking than lower duties.



I didn't say anything wrong. You can still put more money aside for your pension; and you don't receive the same generous pension tax benefits. Both of these claims are true.

I think you're missing that poor people hold onto older cars general which skews the figures.
I can't afford to buy a new car never mind an economical one. I'm stuck driving my old diesel until it breaks. Then I will again but the cheapest car I can that gets the job done.

 

[Martynt74]

I don't recall them forcing anyone, they are providing support for those who do, by decoupling disability benefits from income. Or at least that's what I recall them saying.

The only way this may manifest is if they are working less than 18 hours a week. Which is below what is considered part time hours.

Exactly. Interesting to see where the £5k support goes. Will it be for aids/assistance to help people work remotely, or go to employers to encourage them to take more risks in hiring someone with a disability.

 

[ci_newman]

Well the abolishment of the LTA is certainly going to do one thing.

Increase the rich/poor divide of pensioners even further.

That's going to be popular with their usual voter base at the next GE

 

[EddScott]

I didn't say anything wrong. You can still put more money aside for your pension; and you don't receive the same generous pension tax benefits. Both of these claims are true.

Oh I see. You just chose not to mention pension funding over the LTA got absolutely hammered?

Anyway, no more LTA and Annual Allowance up to £60K. Nice

 

[McBain]

I don't recall them forcing anyone, they are providing support for those who do, by decoupling disability benefits from income. Or at least that's what I recall them saying.

The only way this may manifest is if they are working less than 18 hours a week. Which is below what is considered part time hours.

That’s not what it sounded like to me.

Their “helping people into work” is just another way of saying “you must work”.

This is the DWP we're talking about. They have history of this sort of thing.

 

[Devilman]

Well the abolishment of the LTA is certainly going to do one thing.

Increase the rich/poor divide of pensioners even further.

Please forgive my ignorance of the LTA, Pension(s) is something I am admittedly still quite uneducated with regard to their intricacies.

If I understand correctly, abolishing the LTA means there is no "upper limit" on how big your pension pot can grow to now with no taxation?

Or is it related to getting taxed on it when you start to actually draw from that pension?

TIA

 

[ci_newman]

Please forgive my ignorance of the LTA, Pension(s) is something I am admittedly still quite uneducated with regard to their intricacies.

If I understand correctly, abolishing the LTA means there is no "upper limit" on how big your pension pot can grow to now with no taxation?

Or is it related to getting taxed on it when you start to actually draw from that pension?

TIA

yes, exactly that.

 

[200sols]

Please forgive my ignorance of the LTA, Pension(s) is something I am admittedly still quite uneducated with regard to their intricacies.

If I understand correctly, abolishing the LTA means there is no "upper limit" on how big your pension pot can grow to now with no taxation?

Or is it related to getting taxed on it when you start to actually draw from that pension?

TIA

You will still pay tax when you take the pension though at the usual rates no matter how large it grows.

 

[MikeTheNative]

According to the UK government just saying a slogan is the same as actually doing something.
Strong & stable
Get Brexit Done
Stop the Boats

Doesn't matter if they don't actually affect anything, half the time it ends up worse.
They just need to appear like they are doing something.

 

[adam cool dude]

No, I would prefer for people to be able to afford the choice to have kids without needing propping up by everyone else in society.

It's really not that hard to grasp.

Going by that notion then all parents should pay for private schooling as well as you are propping that up by paying taxes? Who do you think paid for your schooling?

Is that what you think too?

If you needed Cancer saving surgery that cost the tax payer several hundred thousand pounds. Why should I pay for that with my tax going by your way of thinking?

 

[ci_newman]

You will still pay tax when you take the pension though at the usual rates no matter how large it grows.

25% of it is tax free though (plus annual income allowance)

 

[SKILL]

Oh I see. You just chose not to mention pension funding over the LTA got absolutely hammered?

Anyway, no more LTA and Annual Allowance up to £60K. Nice

That's not my post!

Yay for the rich, they need all the help they can get...

 

[Mr Jack]

If I understand correctly, abolishing the LTA means there is no "upper limit" on how big your pension pot can grow to now with no taxation?

Or is it related to getting taxed on it when you start to actually draw from that pension?

There's an upper limit on how much you can put into a pension each year without being taxed. That's just gone up. There's also an upper limit on how large your pension pot can be without paying any tax when you use that pension pot to buy your pension annuity (and/or take some of it as a lump sum), that limit is the LTA which is being abolished. You still pay tax on the income you get from your pension.

 

[Deleted User 234324]

Good childcare reform changes.

 

[squerble]

Good childcare reform changes.

More children for fewer staff, great.

 

[ci_newman]

There's an upper limit on how much you can put into a pension each year without being taxed. That's just gone up. There's also an upper limit on how large your pension pot can be without paying any tax when you use that pension pot to buy your pension annuity (and/or take some of it as a lump sum), that limit is the LTA which is being abolished. You still pay tax on the income you get from your pension.

Buying a pension annuity is optional though, you can decide simply to do a cash drawdown instead.

 

[Deleted User 234324]

More children for fewer staff, great.

Optional, not mandatory.

 

[ChrisD.]

Childcare hours kicked down the road like a can.

 

[Devilman]

yes, exactly that.

Thanks

You will still pay tax when you take the pension though at the usual rates no matter how large it grows.

Aaah I see, so Pension "Pay" is still taxed when you receive it, same as a normal income, but this new change prevents / removes any additional taxation on payments *into* the pension if you were over the allowance that were presumably in place with the LTA?