""Any private pension income, savings interest or taxable benefits will push people over the threshold. Many who have never paid tax in retirement will soon find themselves in HMRC's sights.""
""If nothing changes, the state pension will overtake the personal allowance entirely within a few years," he explains. "That would make every pound of additional income taxable for millions.""
""Freezing the allowance is an invisible tax rise. It lifts revenue without headlines, but it falls hardest on those with fixed incomes-the very group the triple lock was supposed to protect.""
The state pension will rise 4.7% next April to about £12,534.60 a year. That amount sits roughly £35 below the frozen £12,570 personal allowance, meaning modest additional income could trigger income tax. Private pension withdrawals, savings interest or taxable benefits can push pensioners over the threshold. HMRC data show about 8.5 million pensioners currently pay income tax, up from roughly 7.8 million a year earlier. The triple lock raises pensions by the highest of inflation, wage growth or 2.5%, while the personal allowance is frozen until at least 2028, increasing the number of taxpayers among retirees and reducing retirement planning confidence.
Read at London Business News | Londonlovesbusiness.com
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