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LCP analysis: Conservatives’ ‘triple lock plus’ would still leave about 2.5m UK pensioners liable to income tax, despite pledge to keep state pension below the tax threshold

Published on: 24 June 2024

Published by a Law360 reporter
Legal News
Article summary

LCP said around 2.5 million pensioners would still face income tax under the ‘triple lock plus’, including 2.1 million old-age pensioners

This Conservative plan would lift the tax-free allowance on pension income in line with inflation, in addition to the pledge that the state pension will keep pace with living costs. Under the triple lock, the state pension increases each April by the highest of inflation, average earnings, or 2.5%. Prime Minister Rishi Sunak announced the triple lock plus in May 2024 at the start of the election campaign, promising state pension payments would always remain below the income tax threshold. If the Conservatives win the general election on 4 July 2024, the measure would begin in April 2025. As noted, these pensioners would, for the most part, still be taxpayers even...

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