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Expounder

The granny tax con.

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Quote Originally Posted by Expounder View Post
Quote Originally Posted by Midas View Post
I haven't got much time to reply at the moment, but the pension itself isn't being taxed at all, it's just the higher personal allowance that's being frozen. Whilst I agree this will affect many pensioners, something that I'm quite in agreement does need looking into, it won't affect the poorest. For the 2012/13 tax year, the basic state pension is 107.45 a week, rising to an amount of 142.70 a week for those with no other income who qualify for a pension credit 'top up' - I might be open to correction on the latter figure.
Rising to?........................over what period? One year/ two years/ five years? Every year that passes inflation eats into every income, especially fixed incomes. Which year does the government aim to reach your figures? It still sounds like smoke and mirrors as with all of the other policies introduced so far except the tax cut for the rich. The amount in a pension is immaterial it's what the amount of pension will purchase. Maggie, already moved the goal posts to ensure the comparison was linked to the lower payout when she was in office, Cameron and co seem bent on doing the same.


http://news.bbc.co.uk/1/hi/business/2488513.stm


107.45 a week is 5,587.40 a year, and 142.70 a week is 7,420.40 a year, both of which are well below the threshold amounts at which tax kicks in, which for the 2012/13 tax year is 10,500 for people of pensionable age.
Even taken on your figures even when pensioners reach [the periphery, marginally over] the amount you've quoted minus 20% [whenever that will be] is 114.16 per week and the total year figure of 7,420.40 becomes 5936.32.
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