If the State Pension does keep rising with the Triple-Locked highest measure of inflation, and the income tax allowance remains frozen, it might indeed not be long before the pension is more than the allowance and so becomes taxable. For those with other pensions, it would mean a change of tax code, and more tax taken from one or more of those others. But many, and there are many, whose only income is the State Pension, would suddenly become taxable. A potential nightmare for the HMRC, who would have to either bring in a new system to tax it at source, or try to get thousands, probably hundreds of thousands, to fill in tax returns for the first time and pay what’s due. So it would never have happened. But of course sounds like a pretty good we-love-pensioners tax pledge. Just saying.
“Reeves backs down on plans to cut ISA limit”
So it looks as though Cash ISAs are safe for the moment (FTM – is that a thing?) Rachel has apparently ‘bowed to pressure’ from the banks and building societies and decided not to reduce the allowance to £4,000 for cash and to keep the £20,000 parity with Stocks and Shares ISAs. Bowed also to common sense, I’d say.
