The government has recently announced plans to scrap the current tax-free lump sum pension scheme. This move will come into effect in 2022 and will mean pensioners will have to pay a 20% tax on the lump sum. This decision has been met with mixed reactions from the public, with some praising the move and others voicing their concerns.
Tax-Free Pension Lump Sum Scrapped
From 2022, the current tax-free lump sum pension scheme will be scrapped. This means that instead of receiving the lump sum tax-free, pensioners will be required to pay a 20% tax on the lump sum. This decision has been made in order to help fund the government’s ‘levelling up’ agenda.
Pensioners to Face Tax Changes in 2022
The scrapping of the tax-free lump sum pension scheme will mean that pensioners will have to pay a 20% tax on the lump sum. This could have a significant impact on the amount of money they receive from their pension. It is important to note that this change will only apply to new pensioners and those who are already receiving their pension will not be affected.
The scrapping of the tax-free lump sum pension scheme has been met with mixed reactions from the public. While some have praised the move, others have voiced their concerns about how this will affect pensioners in the future. It is important to note that this change will only apply to new pensioners and those who are already receiving their pension will not be affected.
