Chancellor announces tax break for new State Pension pensioners
Summarised from 4 outlets · Updated 28 Oct, 13:58 · Archive
Chancellor John Healey announced that pensioners with income up to the value of the full new State Pension will pay no Income Tax during this Parliament.
Chancellor John Healey has announced a new pension tax allowance that will protect pensioners receiving the State Pension from paying Income Tax during this Parliament. Pensioners with income up to the value of the full new State Pension will not pay tax under the measure.
The full new State Pension is set to rise to around £13,040 a year from April 2027. This rise takes it above the standard Personal Allowance of £12,570, which would otherwise have required pensioners to pay Income Tax on the excess.
Announcing the Budget measure, Mr Healey said: 'For pensioners, I am delivering the new pension tax allowance – so that pensioners with income up to the value of the full new state pension will not pay income tax in this Parliament.'
However, pensioners receiving the old basic State Pension could be treated differently, as their payments are considerably less than the new rate.
Money Saving Expert founder Martin Lewis confirmed that pensioners with income up to the value of the full new State Pension would not pay tax, but warned that the precise mechanism had not yet been explained. He suggested there would likely be an effective increased pensioner allowance with a clawback for income above that level, though this remained uncertain.
How it is being reported
- Cumbria pensioners handed new State Pension tax break in BudgetChancellor John Healey announced a new pension tax allowance so pensioners will not pay Income Tax during this Parliament.Cumberland News · 28 Oct, 13:39
- Cumbria pensioners handed new State Pension tax break in BudgetChancellor John Healey announced a new pension tax allowance so pensioners will not pay Income Tax during this Parliament.NW Evening Mail · 28 Oct, 13:39
- Cumbria pensioners handed new State Pension tax break in BudgetChancellor John Healey announced a new pension tax allowance so pensioners will not pay Income Tax during this Parliament.Westmorland Gazette · 28 Oct, 13:39
- Cumbria pensioners handed new State Pension tax break in BudgetChancellor John Healey announced a new pension tax allowance so pensioners will not pay Income Tax during this Parliament.Whitehaven News · 28 Oct, 13:39
In this story: John Healey · Martin Lewis · Cumbria
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