Jeanne Brown’s tax bill soared when her husband died. As she tells Tony Levene, this age-related penalty is a policy that ‘stinks’While the furore over the abolition of the 10p tax rate refuses to die down, a largely forgotten group of pensioners has been hit with losing 30p in each extra pound they earn in income tax. Among the hardest hit by a little-known tax rule, the “age allowance clawback”, are widows – and widowers – who “inherit” pensions from their former spouses. In some cases, they can end up paying far more than their combined tax bill as a married pensioner couple, despite having lower earnings as a single person.Jeanne Brown, who lives near Sheffield, found her tax bill soared after her husband, Alec, died three years ago. Continue reading…
Source : theguardian.com
Read more…Scandal of a hidden tax rule that punishes widows on a pension
