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savings and contributionary esa
- elaine pyrke
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13 years 8 months ago #51606 by elaine pyrke
Replied by elaine pyrke on topic Re:savings and contributionary esa
Walt
As far as I know, pensions are only disregarded on IB if you were claiming IB before 2001.
If you started to claim IB later than 2001, any pension over £85 loses you 50 pence in the pound from your IB (as with ESA).
What I don't know is whether, if you have claimed IB since before 2001, you will start to be subject to the 50p clawback after you migrate to ESA.
Also, I think with ancient IB claims the IB is tax-exempt - and I don't know if the exemption carries on after migration to ESA either.
Sorry, I hope I haven't muddied the waters even further.
As far as I know, pensions are only disregarded on IB if you were claiming IB before 2001.
If you started to claim IB later than 2001, any pension over £85 loses you 50 pence in the pound from your IB (as with ESA).
What I don't know is whether, if you have claimed IB since before 2001, you will start to be subject to the 50p clawback after you migrate to ESA.
Also, I think with ancient IB claims the IB is tax-exempt - and I don't know if the exemption carries on after migration to ESA either.
Sorry, I hope I haven't muddied the waters even further.
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- Gordon
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13 years 8 months ago #51608 by Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gordon on topic Re:savings and contributionary esa
The ESA Transitional Regulations 2010, which were passed into law last October in order to enable the transfer of IB claimants to ESA, do not modify the existing ESA regulations regarding pensions and tax.
So where you may not have had your pension income considered with you IB, you now will, and where you were tax exempt, your ESA(CB) will be liable to tax.
Sorry
Gordon
So where you may not have had your pension income considered with you IB, you now will, and where you were tax exempt, your ESA(CB) will be liable to tax.
Sorry
Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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- happyfeet
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13 years 8 months ago #51690 by happyfeet
Replied by happyfeet on topic Re:savings and contributionary esa
I guess Ian Duncan Smiths claim that folk transfering from IB to ESA would be no worse of financially does not hold water.
I certainly would be worse of as a claiment prior to 2001 I have had my pension disregarded , I estimate I will be £ 50 a week worse of ,presuming I manage to get through the assessment and on to ESA.
Happy Feet
I certainly would be worse of as a claiment prior to 2001 I have had my pension disregarded , I estimate I will be £ 50 a week worse of ,presuming I manage to get through the assessment and on to ESA.
Happy Feet
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- waltwhitman
13 years 8 months ago #51766 by waltwhitman
Replied by waltwhitman on topic Re:savings and contributionary esa
Thanks elaine and Gordon. I am on the pre-2001 pension disregard but not the 1995 Income Tax not liable. I thought that they would allow all claimants to be entitled to ESA CB for a year and then take any pension into account - to allow time for transition, default on the mortgage and Council Tax, make a pitch for a space under a bridge, build a wigwam with two cardboard boxes and a large hankie etc. Alas this is not the case, they're being complete cads and not doing the decent thing.
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