Capital Gains Tax to increase from 18% to 30%?

StevieJ

kennyboy66 wrote: »

Sort of.

Indexation relief (basically to allow for RPI) was abolished by Brown in 1998 and replaced with taper relief. .

Actually meant TR I must be regressing :eek:

Thrugelmir

Harry_Powell wrote: »

Worse than that, people will be receiving 20% tax relief on monies paid into their pensions and being taxed at 40% when they eventually receive it. It doesn't seem fair.

How many people retire with pension pots over a £1 million, and thats after taking 25% lump sum tax free.

If you've accumalated that level wealth your pension is unlikely to be your only source of income either.

Harry_Powell

Thrugelmir wrote: »

How many people retire with pension pots over a £1 million, and thats after taking 25% lump sum tax free.

If you've accumalated that level wealth your pension is unlikely to be your only source of income either.

I agree and I know many people will think "Well if you're that loaded then you can afford to pay more tax than the rest of us", but that's exactly what Labour want us to think and then vote em back in. The trouble is that many of these people are the wealth generators that the rest of us depend on and are employed by, if they move to a different country so will the jobs. Also, I think taxation should be fair for everyone not just the very poor, or very rich.

I do remember reading an article where an ordinary couple became the first ISA millionaires. They basically used their PEPS, TESSA and then ISAs to the best advantage and to the max and ended up with over a million quid in them all. It's not beyond the realms of fantasy to think that ordinary people will be pushing £1M pension pots if they invest long enough (my state retirement age is now 68, and will probably be increased to 70 soon), invest wisely enough (more people have an increasing amount of control over their pension investments due to SIPPS, etc) and invest enough each month.

I'm not going to weep for someone who has a pension pot of over £1M, but it does annoy me that the younger one is, the less advantageous are the tax and investment regimes are becoming.

No state sell off (BT, BA, BGas) for the likes of me, no final salary pensions, no tax free dividends in my pension, no demutualisations to carpet bag. It seems that the people who make the decisions to toughen up taxes are the ones who did very well thank you from the 'lax' rules. :rolleyes:

Harry_Powell

Oh, the other thing that's being mooted is a rise in VAT from 15% to 20%, which I believe is the highest they can go under EU law?

If the bankers think they had a rough ride due to their excessive bonuses so far, they aint seen nothing yet! Once people start feeling the pinch and if the bankers keep getting record bonuses, there'll be public lynchings!! :eek:

Thrugelmir

Harry_Powell wrote: »

I agree and I know many people will think "Well if you're that loaded then you can afford to pay more tax than the rest of us", but that's exactly what Labour want us to think and then vote em back in. The trouble is that many of these people are the wealth generators that the rest of us depend on and are employed by, if they move to a different country so will the jobs. Also, I think taxation should be fair for everyone not just the very poor, or very rich.

I do remember reading an article where an ordinary couple became the first ISA millionaires. They basically used their PEPS, TESSA and then ISAs to the best advantage and to the max and ended up with over a million quid in them all. It's not beyond the realms of fantasy to think that ordinary people will be pushing £1M pension pots if they invest long enough (my state retirement age is now 68, and will probably be increased to 70 soon), invest wisely enough (more people have an increasing amount of control over their pension investments due to SIPPS, etc) and invest enough each month.

I'm not going to weep for someone who has a pension pot of over £1M, but it does annoy me that the younger one is, the less advantageous are the tax and investment regimes are becoming.

No state sell off (BT, BA, BGas) for the likes of me, no final salary pensions, no tax free dividends in my pension, no demutualisations to carpet bag. It seems that the people who make the decisions to toughen up taxes are the ones who did very well thank you from the 'lax' rules. :rolleyes:

I know many successful business people. The majority have no objection to paying higher rates of tax. As they enjoy good comfortable lifestyles. None as far as I am aware have left this country. As its difficult to take your employees or your customers with you amongst other issues!

The Conservatives have hinted at a return to pension tax credits if they are elected for a second term.

Amid the gloom. Expect Government proposals to encourage a return to a savings culture. One could be a FTB deposit scheme where people save with a lender over a prescribed period (3 years) then receive some bonus at the end.

What happened to demuatalisations. How many building societies that became banks are left?

undetterred

Old head on young shoulders there Harry?

Harry_Powell

undetterred wrote: »

Old head on young shoulders there Harry?

Product of a public school education, old boy.

Perapts I shud talk lark this to underline me yoof?

Not all young people are feral monsters from sink estates, some of us are educated, like.

lostinrates

Thrugelmir wrote: »

I know many successful business people. The majority have no objection to paying higher rates of tax. As they enjoy good comfortable lifestyles. None as far as I am aware have left this country. As its difficult to take your employees or your customers with you amongst other issues!

The Conservatives have hinted at a return to pension tax credits if they are elected for a second term.

Amid the gloom. Expect Government proposals to encourage a return to a savings culture. One could be a FTB deposit scheme where people save with a lender over a prescribed period (3 years) then receive some bonus at the end.

What happened to demuatalisations. How many building societies that became banks are left?

To counter that I know successful business people (and workers) who HAVE moved abroad. Whilst saving money was not always the motivtor, it is a big tick in the plus colomn when making the decision. Employing else where is sometimes easier and/or cheaper, commuting to here on a however many days a year business permit is an option for some super rish, and taking clients with you an option for other businesses...it all depends I suppose on what you do, how you do it and what you want from life.

kennyboy66_2

Harry_Powell wrote: »

but it does annoy me that the younger one is, the less advantageous are the tax and investment regimes are becoming.

No state sell off (BT, BA, BGas) for the likes of me, no final salary pensions, no tax free dividends in my pension, no demutualisations to carpet bag. It seems that the people who make the decisions to toughen up taxes are the ones who did very well thank you from the 'lax' rules. :rolleyes:

Poor you missing out on the privatisation of British Airways and BT - my heart bleeds.
You don't know what you missed;)

Most people outside of the public sector never had final salary pensions anyway.
What about all the people whos savings were decimated by inflation in the 1970's.

A bit of perspective wouldn't go a miss - like it or not, for most people "they have never had it so good"

neverdespairgirl

Mr_Mumble wrote: »

30% would be absurd, you'd get an awful lot of people manipulating capital gains to income very quickly. The reasons for capital gains being treated beneficially is to promote enterprise and risk-taking. Labour have already screwed over long-term investors by getting rid of taper relief and indexation allowance (effectively taxing people for government created inflation!)

It was 40% before, wasn't it?

I've never understood why capital gains tax isn't similar to income tax. It benefits people who invest over labour - Marx would turn in his grave (-: