The Independent sends reporters to cover reproductive rights, climate change and Big Tech and produces documentaries such as 'The A Word' about American women fighting for reproductive rights. The Independent relies on donations to send journalists to report from the ground and avoids paywalls, funding journalism through voluntary reader support. Chancellor Rachel Reeves may consider lowering the tax-free pension lump-sum cap to raise roughly 2bn by reducing the limit on tax-free lump sums. Currently pensioners can withdraw a quarter tax-free up to 268,000. The Treasury did not rule out lowering the cap, though officials called it unlikely. Economists warn that raising taxes or changing borrowing rules may be necessary to fill a potential 50bn shortfall.
Rachel Reeves could consider cutting the amount savers are allowed to withdraw in a lump sum from their pension pots as she seeks to plug a multi-billion-pound hole in the public finances. The chancellor will look at proposals from civil servants that could raise around 2bn by lowering the limit on how much people are allowed to take out of their pension without paying tax. Currently, pensioners can take out a quarter of their pension pot tax-free, with a cap of 268,000.
Lowering the level could bring in billions of pounds of additional tax revenue each year as the Treasury grapples with a black hole of as much as 50bn. Rachel Reeves could consider cutting the tax-free pension lump sum allowance (PA Wire) The Treasury did not rule out lowering the cap on the tax-free pension lump sum, but an official told The Daily Telegraph it was unlikely.
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