Thanks a bunch Mr Osborne. You cut income tax for the rich to 45p in the pound. That was jolly nice of you, I’m sure the 300,000 who pay the highest rate will be thankful.
Those who won’t be thankful are the pensioners like myself and Pamela because you introduced a “granny tax” to pay for your other tax cuts.
It was Winston Churchill, who in 1925, decided that pensioners like us should enjoy a more generous personal allowance against tax once we reached 65. I actually didn’t know that so it came as a nice surprise on my 65th birthday to find that I would be better off.
To add insult to injury, Mr Osborne described the removal of the tax break as a “simplification” that would be welcomed by pensioners who would not have to fill out tax forms. Because we are older does not mean we are too senile to understand a simple form and take the trouble to fill it in. I think it took me all of five minutes to complete the task. It took a darned sight longer than that to fill out the form necessary to claim my state pension.
The increased allowance, which starts at £10,500 and then increased each year, will now be frozen at £10,500. For those who turn 65 next year, the allowance will be £9,205, the same as working people – just as well that Pam and I are 65 this year.
Ps Isn’t it sad that those people with homes worth more than £2 million will have to pay stamp duty at 7%, I really feel for those people!