Labour has been defeated in its efforts to block controversial plans to freeze age-related income tax allowances for pensioners.
MPs voted by 298 to 231 in the House of Commons on Thursday against Labour's proposal to drop the plan announced in last month's Budget. Shadow chancellor Ed Balls had said the move was "one of the most unfair policies" announced by Chancellor George Osborne, but the coalition claims it will save £1bn by 2015. Currently, pensioners earning less than about £24,000 a year get a more generous tax-free allowance than people of working age. Individuals aged between 65 and 74 can earn £10,500 before paying income tax, while those aged 75 or over have a £10,660 allowance. This compares...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- 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
