HM Treasury has addressed a recent Parliamentary petition urging the government to introduce a tax code that would double the personal allowance for state pensioners. The petition proposes raising the tax-free threshold to £25,140 specifically for this group.
The petition, supported by members of the public, calls on the Labour Party government to implement this change to reduce the tax burden on pensioners receiving state pensions. HM Treasury’s response outlines the current tax policy and considerations regarding personal allowances.
**Why this matters**
The personal allowance determines the amount of income individuals can earn before paying income tax. Increasing this allowance for state pensioners could potentially reduce their tax liabilities, impacting their overall financial well-being. The government’s decision on this issue will affect pensioners’ disposable income and broader fiscal policy.
Source: News Source