Healey is expected to shield low-income pensioners from income tax – but how will it work?
Reported by The Guardian Business, not nibnow. We are not the publisher of this story, only the source is.
Low‑income retirees could keep more of their state pension if the new personal allowance prevents any tax being taken, directly affecting their household income.
Retirees will get a personal allowance aligned with the new state pension, but experts say it could get complicated Retirees in the UK on low incomes are expected to be given a new personal allowance so that they do not have to hand any of their state pension to HMRC. The full details are due to be revealed by the chancellor, John Healey, in Wednesday’s budget, but here is what we know so far. Continue reading...
In the UK, a personal allowance is the amount of income that can be earned before income tax is charged; the state pension is the regular payment retirees receive, and HMRC is the tax authority that collects income tax.
- •The Chancellor's budget announcement for the exact level of the new personal allowance
- •Details on how the allowance will be applied to different pension incomes
- •Any guidance on administrative steps retirees must take to claim the relief