Labour voters….

How can you reduce the wealth divide if people are free to move abroad if they have money? That obviously includes pensioners. Better to get some inheritance tax than get none at all. Plenty of rich pensioners can move to jurisdictions with better quality healthcare and live in care at a fraction of the cost of staying here. It is only those who need the free healthcare who have to stay.

No point in trying hard if are no better off than those who don’t try hard.

🙄

So, those who have earned their wealth by effort have to pay to provide pensions for those who make a career of living off benefits? What a pile.

How did my in-laws earn their 2m house that they bought in a rough part of London?

It’s more reason to raise inheritance tax and lower the threshold with the resulting revenue invested in pensions. To do anything else is just increasing the wealth divide.

Exactly! we should be reducing it

But this sort of hypothecation won’t happen and the money raised with be lost in some other shit show.

@blossomtoes

It’s more reason to raise inheritance tax and lower the threshold with the resulting revenue invested in pensions.

So, those who have earned their wealth by effort have to pay to provide pensions for those who make a career of living off benefits? What a pile.

The pension age of 65 for men and 60 for women was established in 1908. Governments saw the population both increasing and aging, but did nothing about it.

To do anything else is just increasing the wealth divide.

There will be a wealth divide for as long as people can keep what they have worked for. No point in trying hard if are no better off than those who don’t try hard.

As for younger people might not receive a pension, this is more reason not to apply inheritance tax in estates below £2 million.

It’s more reason to raise inheritance tax and lower the threshold with the resulting revenue invested in pensions. To do anything else is just increasing the wealth divide.

On the who pays more tax posts that come up on most threads, we’re at the max already, higher taxes won’t help.

They are inevitable, utilities, food etc are not going to get cheaper. Social care & NHS costs are only going to keep increasing due to the demographics

"The Office for National Statistics (ONS) published figures today showing the number of people over state pension age is projected to increase by nearly 14%, from 12 million in 2022 to 13.7 million in 2032 – despite the increase in state pension age to 67 from 2028. Conversely, the number of children is expected to fall by over 6% in the same period."

True which means it’s been a long time since we’ve had a gov with anti earning rhetoric and policies.

On the who pays more tax posts that come up on most threads, we’re at the max already, higher taxes won’t help.

In 2023, it was estimated approximately 4,000 millionaires left the UK. In 2024, that number had increased to almost 11,000.

this is a little disingenuous as we had so many in the first place plus all those tax overhauls you talk about will drive away some millionaires...

As for younger people might not receive a pension, this is more reason not to apply inheritance tax in estates below £2 million.

No because you should be able to earn money to have security not rely on inheritance and what about those who don't get one?

Once someone had made 35 years of NI contributions, there is no benefit to make further contributions as the pension received will be the same.

There is a benefit to the wider economy.... I will hit 35 yrs at 52 but my current state pension age is 68. I can't opt out of paying NI though can I?

Well they’re serious enough to have 75 MPs, not that many fewer than the Tories now.

I wish the Lib Dems were a serious party.

@footpath

Once someone had made 35 years of NI contributions, there is no benefit to make further contributions as the pension received will be the same.

As for younger people might not receive a pension, this is more reason not to apply inheritance tax in estates below £2 million.

@taxguru

Someone with a million of savings/investments really shouldn't be exempt from tax on income and gains just because it's in an ISA wrapper - they can afford to pay tax on it and should do!

Even Tony Blair said that chasing the wealthy would be unproductive. Tax them too much and they leave the UK and then HMRC receives zero from them.

In 2023, it was estimated approximately 4,000 millionaires left the UK. In 2024, that number had increased to almost 11,000.

why don't people working above state pension age pay NI?! younger people will be lucky to see a state pension.

@taxguru I agree with you re rolling taxes up and that there is far too much burden on income but too many older people will be dead against and prefer to blame immigrants.

State pension is £230.25 per week, approximately £12K per year. Once you receive the pension it’s subtracted from the personal allowance, currently £12,570. So, pensioners have £570 allowance remaining.

If they receive rental income, it will be taxed at 20% or more depending on total income. The same applies to interest in savings.

The dividend allowance used to be £5000, but now it’s £500. Dividends are taxed at 8.75% or more depending upon total income.

However, dividends can only be paid if a company makes a profit. Increases in corporate tax means there is less money remaining to be distributed as dividends.

Indeed. The answer is to raise taxes on those who aren't paying enough compared to other people. So make everyone on the same income pay the same taxes. Scrap NIC and increase income tax instead. Or impose NIC on ALL income sources including pensions, property rentals, interest etc. Scrap the 0% interest band, the personal savings allowance band, and drastically reduce the tax free elements of ISAs. Someone with a million of savings/investments really shouldn't be exempt from tax on income and gains just because it's in an ISA wrapper - they can afford to pay tax on it and should do!

Single parenthood has always been fiscally unfair. I used to get really depressed when I allowed myself to think about how much better off couples were not just because they had two incomes but two personal allowances. I’d really like to see something done about that.

We can't keep squeezing the same people.

So why squeeze those earning 100k more?

The main category of people who need to pay more tax are those with non-working income, i.e. interest, pensions, property rental income, etc. who are paying way too little.

This is a huge part of the problem.

We really can't justify a pensioner with total income of £50k from a mix of pensions, property let, interest and dividends paying less than a worker on £50k.

But that won't go down well will it?

Lower and middle income workers people can't afford to pay any more tax. They're already paying ridiculously high housing costs, childcare costs, council tax, utilities, student loan repayments, NIC, etc. We can't keep squeezing the same people.

But the fact remains lower and middle earners pay less vs other countries.

I agree housing and childcare costs are ridiculous and wages are low but they aren't going to get any cheaper because of our changing demographics n

Exactly we can’t keep squeezing the same people. The people earning £100k have been squeezed and squeezed and now they are running (or not having children which is bad for our country in the long run). A couple earning £50k each take home approx £76k after tax. And they still get child benefit, tax free childcare and free hours at nursery. A single parent earning £100k takes home £66k but they don’t get child benefit, tax free childcare or free hours at nursery. We have to stop the people earning £100k plus can pay for everything attitude.

How are younger people paying?

Stagnant wages, higher taxes, later pension age, higher housing costs etc. As I said we haven't invested in young people.

Until they are given the opportunity, it will never be known.

How do you reduce taxes, immigration and improve services with an ageing population?