'Tax justice: whatever your age' urges the coalition government to remove imbalances in the tax system between young and old. At present, the richest pensioners pay far less tax than people of working age on the same income.
CentreForum proposes that the government should phase out the tax free lump sum and end national insurance exemptions for affluent pensioners. This would make the tax system more balanced and save taxpayers over £9 billion a year. The savings could be used to raise the personal income tax allowance by £1,700, which is equivalent to a £330 a year tax cut.
The report shows that scrapping these tax breaks would only affect wealthy pensioners: two thirds of current pensioner households would be better off or unaffected by the proposed changes.
Download the report
Download the media release
"Young people are financing tax breaks for older, wealthier pensioners. We need a tax system that plays fair with all generations, one based on wealth and income, not on age."
- Angus Hanton, co-founder of the Intergenerational Foundation
Axe tax breaks for rich oldies thesun.co.uk/sol/homepage/n…— Sun Politics (@Sun_Politics) September 15, 2012