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More misery lies ahead for older people under plans to tax the basic state pension at source in a proposal that has been labelled the 'granny tax 2'. The state pension, which rises from £102.15 to £107.45 a week today, is currently paid before tax is deducted. Now the Treasury is considering slapping a 20 per cent basic tax rate on the sum at source, reducing it to £85.96 a week for millions. Wealthier pensioners on the 40 per cent tax rate would receive £64.47 a week. The Treasury's tax advisers are looking into the idea and will report to George Osborne later this year in time for the next Budget....Read more here--: Treasury considers taxing state pensions at source in 'granny tax' 2
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5corpio started a blog post Treasury considers taxing state pensions at source in 'mark two granny tax'Treasury considers taxing state pensions at source in 'mark two granny tax'
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The Communities Secretary Eric Pickles has said it is "fundamentally unfair" to charge households for annexes as well as their own homes. As a result, hundreds of thousands of families could benefit from the plans rom tax breaks on "granny flats" under plans being considered by the Government. It is believed ministers are also considering overhauling planning regulations and fees to make it easier for homeowners to convert garages and other outbuildings. Mr Pickles told the Daily Telegraph: "We are keen to remove tax and other regulatory obstacles to families having a live-in annexe for immediate relations. "We should support homeowners who want to improve their properties and standard of living. These reforms should also play a role in increasing the housing supply."...Read more here: : Coalition Government Lifts Tax On Extensions - Dwellings - Erick Pickles
Pensioners are preparing for battle to prevent the Government's assault on pensions
If the Government thought this latest tax grab wouldn't cause the same outcry as the removal of child benefit from higher earners, then they need to think again. The National Pensioners Convention has launched an 11th-hour bid to stop the Government raising £3.5bn from older taxpayers over the next five years, and in doing so bringing 230,000 retirees back into the tax net. Its online petition has attracted 74,000 signatures. It is just 26,000 short of the 100,000 required for a debate in the House of Commons.
Neil Duncan-Jordan, a spokesman for the convention, said: "We want as many people as possible to sign the petition as we need to get the plight of pensioners higher up the political agenda. We do not object to harmonising the tax regimes of those in work and people who are retired. But it should not be done by penalising pensioners." Baroness Joan Bakewell, campaigner for older people, called the changes "fundamentally unfair". "The claim that it makes things simpler for pensioners to understand adds insult to injury," she said.......Read more here
More than 90,000 pensioners sign petition asking MPs to rethink tax plans.
MPs could soon be forced to debate the so-called "Granny Tax" due to come into force this April, as a petition calling for its abolition has attracted almost 100,000 signatures. After the e-petition was featured in a recent article in The Telegraph, the number of signature jumped from 75,000 to more than 91,000. If a further 9,000 sign this should trigger a parliamentary debate on this issue. Those signing are protesting against the latest tax grab on pensioners – which is due to raise £3.5bn. In April the Government plans to abolish the special age-related tax allowances which pensioners have enjoyed since 1925. These currently give pensioners a higher tax allowance than the general public, so they can earn an extra £3,000 from pensions or savings before paying income tax......Read more here