{"id":87173,"date":"2018-05-05T13:00:45","date_gmt":"2018-05-05T06:00:45","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/pensions-is-it-right-to-charge-45-55-tax-on-incomes-above-26000-patrick-collinson\/"},"modified":"2018-05-05T14:03:38","modified_gmt":"2018-05-05T07:03:38","slug":"pensions-is-it-right-to-charge-45-55-tax-on-incomes-above-26000-patrick-collinson","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/pensions-is-it-right-to-charge-45-55-tax-on-incomes-above-26000-patrick-collinson\/","title":{"rendered":"Pensions: is it right to charge 45-55% tax on incomes above \u00a326,000? | Patrick Collinson"},"content":{"rendered":"


\nHigh earners get 40% relief, lower earners 20%, so the poor get much less tax relief than the well-offThis is going to be a difficult column to write. I\u2019m about to make a plea for tax changes on behalf of people with \u00a31m-plus pensions. Why? Because our tax system has created perverse incentives that are forcing high earners such as doctors, dentists, lawyers and accountants to save less, invest unwisely and engage advisers to try to work around the rules, when simple reforms can achieve the same policy aim \u2013 of making sure that the well-off don\u2019t milk the pension tax relief system.Let\u2019s be clear that while \u00a31m is a huge sum, and far above what most workers are saving into their pension, it doesn\u2019t actually translate into a luxury pension income. Buy an income with \u00a31m at retirement and you\u2019ll receive an annuity (a guaranteed income) of about \u00a325,000-\u00a326,000 a year, according to figures from Retirement Advantage. That\u2019s a very comfortable sum \u2013 considering you\u2019ll get the state pension on top \u2013 but hardly puts you in the round-the-world-cruise league. Yet if your pension fund is worth more than \u00a31,030,000 \u2013 the current level of what\u2019s called the \u201clifetime allowance\u201d \u2013 the government will tax everything above that amount at either 55% (if you take it as a lump sum) or 45% (if you take it as income and you\u2019re a standard rate tax payer). Continue reading…
\n
\nSource : theguardian.com
\nRead more…Pensions: is it right to charge 45-55% tax on incomes above \u00a326,000? | Patrick Collinson<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

High earners get 40% relief, lower earners 20%, so the poor get much less tax...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-87173","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-mG1","jetpack-related-posts":[{"id":10094,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/public-sector-professionals-under-threat-from-pension-tax-relief-changes\/","url_meta":{"origin":87173,"position":0},"title":"Public sector professionals under threat from pension tax relief changes","date":"November 7, 2015","format":false,"excerpt":"\r The chancellor\u2019s autumn statement could lead to the slashing of pension tax relief, while in April new rules will hit higher earners such as dentists and doctorsPublic sector professionals such as doctors, senior civil servants and university professors in line for pensions worth more than \u00a343,000 a year face\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":7284,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/pensions-system-favours-the-richest-letters\/","url_meta":{"origin":87173,"position":1},"title":"Pensions system favours the richest | Letters","date":"March 9, 2016","format":false,"excerpt":"\r Polly Toynbee\u2019s theory (Opinion, 8 March) that the chancellor caved in on reform of pension tax relief to a selfish pension industry suffers from one small problem \u2013 it isn\u2019t borne out by the facts. It is certainly true that the \u201cpension Isa\u201d option initially favoured by the chancellor\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5376,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/pension-tax-relief-cut-its-not-just-the-ultra-rich-that-will-be-hit\/","url_meta":{"origin":87173,"position":2},"title":"Pension tax relief cut: 'It's not just the ultra-rich that will be hit'","date":"December 5, 2012","format":false,"excerpt":"\r Mark Dampier of Hargreaves Lansdown says the impact of the \u00a310,000 cut in the annual tax-free limit will hit many saversMark Dampier admits he's lucky to be able to afford to put \u00a350,000 a year into his pension, but is furious at the \u00a34,500 tax charge he faces paying\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":97552,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/nearly-19000-uk-earners-now-on-more-than-1m-a-year\/","url_meta":{"origin":87173,"position":3},"title":"Nearly 19,000 UK earners now on more than \u00a31m a year","date":"September 10, 2018","format":false,"excerpt":"\r Number rises by 3,700 but many are foreign or non-doms who could leave after BrexitThe number of people in the UK earning more than \u00a31m a year has jumped to over 18,700, with more than one in 10 of them living in Kensington and Chelsea, according to figures released\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":7090,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/is-the-chancellor-right-to-not-change-pensions-tax-relief\/","url_meta":{"origin":87173,"position":4},"title":"Is the chancellor right to not change pensions tax relief?","date":"March 7, 2016","format":false,"excerpt":"\r The forthcoming budget was expected to include a pledge to cut tax relief on pensions for higher earners, but this has been dropped amid growing concern that it could prompt a backlash from affluent votersAfter weeks of speculation that the chancellor was planning big changes to the tax relief\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6912,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/george-osborne-backs-down-on-radical-pension-reform\/","url_meta":{"origin":87173,"position":5},"title":"George Osborne backs down on radical pension reform","date":"March 5, 2016","format":false,"excerpt":"\r Less than a fortnight before the budget chancellor fears backlash from affluent votersGeorge Osborne has been forced to abandon a package of pension reforms, including reducing tax relief for higher earners, amid growing concern that their introduction could have prompted a backlash from affluent voters. Related: \u00a34bn raid on\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/87173"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=87173"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/87173\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=87173"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=87173"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=87173"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}