Pensioners getting hit again

First published in News

PENSIONERS have had an age tax relief in one form or another since it was introduced by Winston Churchill in 1925.

Now, 87 years later, George Osborne plans to phase it out saying no one will lose any cash.

But I beg to differ because it is an increase in taxation by stealth as identified by the Rooker/Wise amendment in section 22 of the Finance Act 1977 where Jeff Rooker, Audry Wise and Nigel Lawson said that “without indexation, inflation acted as an unauthorised, unintended and unknown increase in taxation”.

I think when George Osborne said our tax system was too complicated for pensioners to understand he was being very patronising.

This does not affect all pensioners, it will only affect the ones who have saved for their retirement, have a small company pension and have total income of less than £25,400. The phasing out does not start until 2013/14 tax year.

But I cannot see where George Osborne can justify giving someone whose income is £1million a £42,500 tax rebate and at the same time freezing the pensioners’ allowance, in doing so make them pay more tax. – PETER ARBER, Rayleigh Road, Stanford-le-Hope.

Send us your news, pictures and videos

Most read stories

Local Info

Enter your postcode, town or place name

About cookies

We want you to enjoy your visit to our website. That's why we use cookies to enhance your experience. By staying on our website you agree to our use of cookies. Find out more about the cookies we use.

I agree