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Ian Watkins's avatar

Barely coherent? You're being very kind to Mr Lammy. I never thought we'd have someone in one of the major Offices of State who makes Matt Hancock look competent......

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Paul Cassidy's avatar

What is most egregious about what you call Starmer’s “personal tax loophole” is that it ain’t a loophole. A loophole is an unintended opportunity to save tax invariably caused by poor drafting of over complex legislation which people, not surprisingly, take advantage of in ways HMRC never intended. And who can blame them? In Starmer’s case the personal tax saving for Starmer alone was precisely the intention of the legislation, not an accidental by-product!

As it happens this personal law is now a Nothing Burger as it simply exempted Starmer from the effect of the Pensions Lifetime Allowance, ie paying tax on the value of a pension pot above the allowance. As the LTA doesn’t exist any longer Starmer’s arrangement no longer puts him in a different position from everyone else. But I wholeheartedly agree that the scandal is that such an arrangement was ever granted.

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