Healey to shield low-income pensioners from income tax in the Budget
Source: BBC ·
Changes are needed to prevent the full, flat-rate state pension becoming liable for income tax after it rises in April.
From the source
Pensioners on low incomes will be shielded from income tax by Chancellor John Healey in his first Budget on Wednesday. The full, flat-rate state pension is expected to increase by 3.9% to £13,036.40 a year from April. This would take the payment above the £12,570 personal tax allowance and therefore be liable for income tax if no changes are made. The government had already committed to not taxing people who only get an income from the state pension. Healey will explain this pledge will be met by plans for a new tax allowance for low-income pensioners. Healey's plans come as the Conservatives and Reform UK unveil their alternative Budget proposals, including deep cuts to the welfare bill. What is the Budget and what could be in it? An insider's guide to Budget Day: 'Don't fall off the kerb' The chancellor's allies argue his plans for pensioners will mean they do not need to face an administrative burden just to pay a small amount of tax. The Budget is due to be printed this evening,…