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PENSIONERS MAY HAVE TO PAY TAX EVENTUALLY 17:41, 04 Jun 2025 People of State Pension age have been warned they might eventually have to pay income tax even if they have no other income.

Under the Triple Lock, the State Pension increases every April by the highest of either 2.5%, inflation, or earnings growth. Steve Webb, a partner at pensions firm LCP, said the State

Pension will pass the Personal Allowance Income Tax threshold from April 2027. Even if pensioners had no other income, their State Pension would be liable for tax by HMRC. Those on the full

new State Pension currently receive £11,973 every year, while the Income Tax Personal Allowance threshold is £12,570. This means that pensioners with no other income are just below the tax

threshold in 2025-2026 by £597. Article continues below READ MORE: DWP WINTER FUEL PAYMENT UPDATE AS RACHEL REEVES SAYS 'THIS YEAR' No one claiming their State Pension alone would

met the marker for paying tax - but that could change in the future unless the Government increases the Personal Allowance threshold. Mr Webb said: "This is because the triple lock

formula provides a floor of 2.5% increases, meaning the rate will rise to at least £236 in April 2026 and £241.90 in April 2027. "The April 2027 rate is £12,578 per year, just above the

£12,570 tax threshold. "This could mean hundreds of thousands of pensioners are taxed on just £8 per year, with a tax bill of £1.60. "If tax-free personal allowance then rise by

CPI but the State Pension rises by more, then this situation will continue indefinitely. "A combination of an increasing State Pension and frozen tax thresholds means we will soon be in

the nonsensical situation where the new State Pension will be just a few pounds above the income tax threshold. "This means that people whose only income is the standard new State

Pension will be dragged into income tax. "Long gone are the days when retirement meant no longer having to deal with the tax office." Article continues below The Personal Allowance

threshold has been frozen for years - but Labour has pledged to keep tax thresholds frozen until 2028. _Don't miss the biggest and breaking stories by signing up to the BirminghamLive

newsletter here._