State pension £25,140 tax threshold plan replace earlier than assertion | Personal Finance | Finance | EUROtoday

Need to know: MPs to Debate Doubling Tax Threshold for Pensioners After Petition Hits 100,000 Signatures

• A petition demanding Chancellor Rachel Reeves double the earnings tax threshold for state pensioners has smashed via 100,000 signatures, forcing MPs to debate the proposals.
• The marketing campaign requires pensioners to obtain a separate tax code permitting them to earn £25,140 earlier than paying tax – double the present £12,570 private allowance. State pensions are forecast to surpass the prevailing threshold by 2027 because of the triple lock mechanism.
• Over 100,907 folks have now signed the petition, with greater than 50,000 signatures added in simply 14 days. The Spring Statement on March 3 will see strain mount on Ms Reeves because the Treasury should defend its place.
• Timothy Hugh Mason, who began the marketing campaign, mentioned: “We want the government to introduce a new tax code for state pensioners, set at double the basic threshold.” He argued that individuals with small personal or office pensions are being taxed unfairly.
• The Chancellor froze earnings tax thresholds till 2031 in her latest Budget, which means thousands and thousands of pensioners will probably be dragged into paying tax from 2027. Ms Reeves has promised these receiving solely the complete new state pension will not face tax payments, however has but to clarify how this may work.
• The Treasury has rejected the petition’s proposals, calling them “untargeted and costly”. Officials mentioned doubling the allowance would disproportionately profit higher-income pensioners and famous the UK already has the very best private allowance amongst G7 nations.
• The Government confirmed it is going to formulate a plan in 2026 to ease the executive burden for pensioners whose sole earnings is the state pension.

READ THE FULL STORY: State pension £25,140 tax threshold plan hits large landmark as spring assertion looms