Monday, December 23, 2024

Two million more pensioners forced to pay income tax

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Most pensioners are now paying income tax, with an additional two million forced to pay it over the past three years, official figures show.

There are now 8.5 million people over pension age paying income tax, as a rising state pension and frozen tax thresholds mean even small amounts of private pension and other income will now see older people taxed.

Rishi Sunak has promised in his pitch to older voters that the state pension will never be taxed, but the latest data released by HM Revenue & Customs shows how a freeze introduced while he was chancellor means an ever higher number are paying tax on their other income.

• Should the state pension be exempt from income tax?

A record 29.5 million people

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