Pensioners to pay more tax

The Government has announced that it intends charging pensioners more tax on their pension income.

Up to April 2009 pensioners receiving private pensions of up to £1,000 pa enjoyed tax free status. However after April 2009, they will have to pay 20% in tax. There is also a threat that they will seek back tax on the two previous years (2007/08 and 2008/09) at 22%.