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UK households can legally avoid paying tax on pensions as millions are hit with shock bills from the Labour Party government and HMRC.

The Department for Work and Pensions ( DWP ) triple lock will mean pensions increase each year by whichever is highest out of: September’s inflation rate, earnings growth in July, or 2.5%. Next year could lead to a 4.7% hike as a result.

But the rise in pay will mean households are taken perilously close to the Personal Tax-Free Allowance. Thankfully, there's a way to avoid the sting of HMRC. Rachel Vahey, head of public policy at AJ Bell, explained how.

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Ms Vahey said: “Removing the freeze on the personal allowance would come at significant cost to the Treasury at a t

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