Major boost for pensions as Jeremy Hunt poised to raise cap tomorrow

On:

Jeremy Hunt is preparing to raise the tax-free allowance for pensions in tomorrow’s Budget, in what would be a major boost. The Chancellor is expected to boost the cap by more than half a million pounds in an attempt to battle the wave of early retirement that has gripped the UK and squeezed growth in recent years.

The threshold for the maximum amount of money workers can put in their pensions before being taxed – known as the lifetime allowance (LTA) – is expected to see an increase from £1million to more than £1.5million on Wednesday.

The LTA was cut by George Osborne in 2012, but tomorrow’s changes are likely to restore it to levels close to its previous peak of £1.8million.

This comes despite the threshold previously having been frozen at £1million until 2028.

Reductions in the lifetime allowance have contributed to a wave of early retirements, as some highly paid workers have cut their hours or retired early in order to avoid breaching the cap.

Mr Hunt will deliver his Budget to the House of Commons on Wednesday.

MORE TO FOLLOW…

Source: Read Full Article

Lates News:
  1. Tory MP agrees 17,000 missing migrants is an ‘utter shambles’ in damning comment
  2. $146 Million Awarded To Bring High-speed Internet To Tribal Communities In New Mexico
  3. POLL: Was Britain right or wrong to leave the European Union?
  4. Despite High-Level Guarantees, Time Is Running Out to Avoid a Default
  5. Top business chiefs will flee UK if Keir Starmer wins, claims Kemi Badenoch