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Workers could be stung by £828 tax bills - for deferring their state pension - after Labour Party Chancellor Rachel Reeves’ brutal Budget. The raid comes as Ms Reeves freezes income tax thresholds until April 2031.
The Treasury has now admitted thousands of workers risk being hit with an £828 bill. Officials have confirmed the tax exemption will strictly apply only to those whose sole income is the state pension “without any increments”.
The decision to allow state pensioners to escape paying income tax means, if you delay claiming your pension to get a higher weekly amount later, you will still have to pay.
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Because the government boosts deferred state pensions, extra rewards face be

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