Budget 2013: Readers urge Chancellor to reinstate tax credit

clock • 2 min read

Reinstating scheme's dividend tax credit is at the top of the industry's wish list for the Budget, according to research .

The next most popular demands among buzz readers were for the restrictions on the National Employment Savings Trust and giving The Pensions Regulator a statutory obligation to consider the affordability of recovery plans.

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Question: What's on your Budget wishlist?

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Someone in favour of reinstating dividend tax credits said: "Funds need an immediate reversal of the Brown raid to boost their values which in turn would give better security."

Repealing the ‘granny tax' of last year's budget was low down the list of priorities, with many participants supporting the controversial measure.

As one respondent explained: "There is no such thing as a ‘granny tax'. The government is merely mitigating very slightly the blatant age discrimination inflicted on people who happen to be less than 65 years old. It is the age allowance that should be repealed."

Perhaps surprisingly ‘no change' was at the bottom of our list. Although as the most popular suggestion for one in ten contributors, it was the least welcome outcome for three in ten. So although many talk about the need for stability in the system, it seems most have their own bugbear they want to see addressed.

Other items on contributors' wish lists included introducing compulsion rather than auto-enrolment, and simplifying taxation by scrapping National Insurance and raising income tax.

A supporter of the latter explained: "Current pensioners with a decent level of benefit need to pay more to support the economy; they took a lot out of companies over their careers and current employees are getting a lot less proportionately."

Taking aim at the controversial perennial of tax allowances, another contributor said: "After the reduction of the allowance I would like to see the reduction of the excessive maximum tax-free lump sum to reduce the ability of very high earners to use the facility as a tax avoidance measure."

Things that respondents didn't want to see included smoothing, and the issuance of more long-dated gilts at low yields. And one respondent, wearily reaching for the caps lock, implored George Osborne: "Please just LEAVE PENSIONS ALONE for a while!"

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