{"id":88684,"date":"2025-05-10T00:11:09","date_gmt":"2025-05-10T00:11:09","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/88684\/"},"modified":"2025-05-10T00:11:09","modified_gmt":"2025-05-10T00:11:09","slug":"state-pensioners-warned-of-sudden-tax-bill-in-blow-to-pensioners-personal-finance-finance","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/88684\/","title":{"rendered":"State pensioners warned of ‘sudden tax bill’ in ‘blow to pensioners’ | Personal Finance | Finance"},"content":{"rendered":"

Millions of pensioners<\/a> could be facing another major blow as they are pushed into paying income tax<\/a> while the personal allowance threshold stays frozen. At the same time, pension payments continue to rise, resulting in a higher number of retirees being slapped with a tax bill. A new House of Commons<\/a> Library report published this week outlines the growing concern among Brits.<\/p>\n

Since 2021\/22, the personal allowance band has been frozen at \u00a312,570, however, the state pension<\/a> continues to increase due to the triple lock<\/a>. This combination is pushing an increasing number of retirees into paying a levy on their retirement income. State pension<\/a> is subject to income tax, the report states, yet it’s paid by the government without tax being deducted first.<\/p>\n

This is leaving many retirees baffled when the tax bill is delivered to their home.<\/p>\n

Pensioners whose sole source of income was the state pension<\/a> were previously exempt from paying income tax, due to their annual income being lower than the personal tax allowance.<\/p>\n

Due to the Government\u2019s triple lock<\/a> guarantee still in place, while hiking up the basic and new state pension<\/a>, the historic rule is changing.<\/p>\n

With the personal tax allowance staying frozen, financial expert Fiona Peake of Ocean Finance has warned of the situation affecting a large number of pensioners.<\/p>\n

“Nearly 18 million more people are expected to be paying income tax by 2027, and almost half of them will be over 60,” she told GB News<\/a>.<\/p>\n

With a higher number of pensioners being forced to pay tax on their state pension<\/a>, it highlights a significant change in how retirement income is taxed.<\/p>\n

Ms Peake explained that the full new state pension<\/a>, which is \u00a3221.20 a week, or \u00a311,500 a year, is “just a few hundred pounds shy of the personal allowance”.<\/p>\n

“Add even a modest private or workplace pension, and suddenly you’ve got a tax bill,” she added.<\/p>\n

“With inflation expected to rise again this year, it’s yet another blow to pensioners’ pockets.”<\/p>\n

The expert points to the tax not being an official rise on paper, yet it \u201cfeels like one in practice\u201d.<\/p>\n","protected":false},"excerpt":{"rendered":"Millions of pensioners could be facing another major blow as they are pushed into paying income tax while…\n","protected":false},"author":2,"featured_media":88685,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3093],"tags":[51,474,22664,42224,2499,1786,1787,42225,16,15],"class_list":{"0":"post-88684","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-finance","10":"tag-income-tax","11":"tag-personal-allowance-freeze","12":"tag-personal-finance","13":"tag-state-pension","14":"tag-triple-lock","15":"tag-triple-lock-guarantee","16":"tag-uk","17":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114480642998553681","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/88684","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=88684"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/88684\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/88685"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=88684"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=88684"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=88684"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}