HMRC Warns: 10m Pensioners Pulled Into Income Tax Net After Threshold Freeze
We are at a turning point for UK retirees. HMRC now estimates that nearly 10 million pensioners will be paying income tax, thanks to a long-term freeze on tax thresholds. On the one hand, pensions are rising steadily, boosted by the triple lock. On the other hand, the tax-free personal allowance remains stuck at £12,570 until 2028. The result? Many pensioners are being dragged into the tax net for the first time. This hidden effect, known as fiscal drag, is quietly shifting the tax burden onto older adults, raising serious concerns about fairness and the cost of living in retirement.
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