MPs may debate 'granny tax'

clock

MPs may be forced to debate a controversial plan to halt age-related tax allowances - a move dubbed a ‘granny tax' - after an online petition opposing it garnered almost 100,000 signatures.

In last year's Budget, the government announced that the amount of income that is not taxed will be frozen for those aged over 65 while, from April 2013, those hitting 65 will no longer receive a larger personal allowance than people of working age. But many pensioner groups have criticised the plans, saying they will hit pensioners with modest amounts of savings the most. An e-petition opposing the plan has attracted almost 92,000 signatures. Should 100,000 people sign the appeal, the issue will be considered for debate by the Backbench Business Committee. The petition states: "We...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Income

Retirement income: Why the '4% rule' does not work for the UK

Retirement income: Why the '4% rule' does not work for the UK

Does the 4% rule have a place in UK retirement planning?

Doug Brodie
clock 10 May 2024 • 3 min read
Stress-testing at the core of suitable retirement income planning

Stress-testing at the core of suitable retirement income planning

'How not to stress-test a withdrawal plan needs to be understood'

Chet Velani
clock 09 May 2024 • 5 min read
Advisers have bigger role to play in annuity journey of clients

Advisers have bigger role to play in annuity journey of clients

Just 29% of annuity sales are advised, according to ABI data

Ahmed Bawa
clock 03 May 2024 • 4 min read