Letters / Channelling cash to the Exchequer
Gordon Harmer, you say in your letter (They just want to control us; SN, 21/03/15).
“In his budget last year Chancellor George Osborne gave British men and women with personal pensions the right to use all the pot of money they had saved (tax free) in their private pensions.”
Not so, you can still only take 25 per cent of your fund tax free in any given tax year, if you’re paying tax on the other 75 per cent then that isn’t giving you the right to use ‘all the pot of money’ and it’s hardly enough to buy an Aston Martin or a new house given the size of most folks ‘pension pot’
‘Previously the lump sum that could be taken was only 25 per cent of their pot. The income would be taxed at marginal rates, 20 per cent for the majority.’
The line above is the one I don’t understand, unless you regard re-claimed savings as income.
Case scenario, you have say…£100,000 ‘pension pot’ (hate that phrase) and you withdraw it all (for an Aston Martin) you get £25,000 tax free but pay £15,000 tax on the other? That is not giving
‘British men and women with personal pensions the right to use all the pot of money they had saved (tax free) in their private pensions.’
So Osborne, the home flipping, towel folding, dubious expense claiming has an eye for the main chance and has seized it, taking money from the annuity providers and channelling it to the exchequer.
Oh and would you please stop referring to folk as ‘Brits’ It has no meaning to me.
My emphasis in the above.
Alan Crowe
Schoolhouse
Aith
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