We want the government to make the state pension tax exempt and not impact the tax threshold.
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We think it is wrong to tax the state pension.
Thursday 24th July 2025
Exempting the State Pension from income tax would be expensive and add complexity to the tax system
Exempting the State Pension from income tax would be expensive at a time when the Government has inherited a very challenging set of fiscal circumstances. Individuals earning above the higher rate threshold would benefit more than those with incomes below, and those earning below the Personal Allowance would not benefit at all.
The Government keeps all taxes under review as part of the policy making process. The Chancellor will announce any changes to the tax system at fiscal events in the usual way.
HM Treasury