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LTA freeze to stealthily drag thousands into the tax net

As UK Treasury eyes extra £250m a year from the move Chancellor Rishi Sunak is rumoured to be introducing a ‘stealth tax’ targeting wealthy pensioners. According to British newspaper The Times, Sunak will announce in next week’s budget that the pension lifetime allowance (LTA) will be frozen for the remainder of the government’s mandate, set to finish in December 2024. The allowance sets out the limit pension pots can reach before incurring tax charges. This would see it go up by £5,800 in April 2021. But if Sunak’s rumoured proposals come to pass, thousands of people could unwittingly fall into the taxman’s net and face a 25% charge on any sum exceeding the threshold.

Brexit news: Boris urged to hack through EU red tape to ensure UK post-Covid recovery | Politics | News

Vaccination rates in the UK (Image: Express) “So why is the government so reluctant to set out a clear roadmap for our independent economic future?” One prime example of the EU’s red tape problems had been uncovered this week following a recent study by the Association of British Insurers, Mrs Ayde pointed out. This indicated there was is potential for the removal of EU regulation forcing insurance companies to keep vast amounts of money locked in ultra-low risk assets. UK coronavirus map (Image: Express) She said: “Apparently, by removing the regulation, it would pave the way for £95 billion in investment throughout the UK, while having no detrimental impact to policyholders.”

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