HMRC is set to forgive tax bills for potentially thousands of state pensioners caught by the static tax thresholds. The tax authority has admitted it won’t chase pensioners for “tiny” tax amounts because it’s simply not cost-effective to do so.

Meanwhile, with income tax bands frozen until 2028 due to the previous Tory Government’s policies, hundreds of thousands of pensioners may soon find themselves taxed on their state pensions. Although Labour has not made clear if they would uphold the…