What was in the money sections of the weekend’s papers? (25/10/2021)

Category: News

How to avoid needlessly paying 55pc tax on your pension

The Telegraph has an article about the cap on how much individuals can have on pensions which is called the “Lifetime Allowance”. It tries to get in more clicks by stating the tax rate on anyone falling foul of it is 55% this is not the case as it is generally 25%.

You can find more about our thoughts on how to plan for the Lifetime Allowance here.

These Budget tax raids will cost you the most

Another article from the Telegraph looks at this week’s budget ad how this could affect pensions. Speculation about tax relief on pension contributions rears its head again alongside the spectre of pensions being subject to Inheritance Tax on death. Of the two the Inheritance tax proposal is the most practical. Whilst pension tax relief is expensive for the Treasury to try and change it would be very difficult and the last time the Government tried to do something with this, tapering, they had to lessen its effect amid a rebellion in the NHS.

NS&I green saving bonds go on sale with fixed 0.65% interest rate

Finally, the Guardian covers the new Green Bonds from NS&I. This pays a rate of interest of 0.65% which is less than half what is on offer elsewhere. However, for those who want to help the planet, the price may be worth it.

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