State Retirement Pensions: Taxation
The question
To ask the Chancellor of the Exchequer, what assessment she has made of the potential merits of ensuring that tax is not paid on state pensions.
Answered by Torsten Bell
Exempting the State Pension from income tax entirely would reduce tax receipts substantially undermining the public services we all rely on – especially the NHS.
However, I can confirm that those whose sole income is the basic and full new State Pension, without any increments, will not pay any income tax this tax year or next.
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