Healey to shield low-income pensioners from income tax in the Budget

“Healey to shield low-income pensioners from income tax in the Budget”

Changes are needed to prevent the full, flat-rate state pension becoming liable for income tax after it rises in April.

“Healey is expected to shield low-income pensioners from income tax – but how will it work?”

Retirees will get a personal allowance aligned with the new state pension, but experts say it could get complicated Retirees in the UK on low incomes are expected to be given a new personal allowance so that they do not have to hand any of their state pension to HMRC. The full details are due to be revealed by the chancellor, John Healey, in Wednesday’s budget, but here is what we know so far. Continue reading...