The Budget

vivatifosi

PROPERTY: Help to buy ISA autumn. Tenants RTB.

3 important changes:
1. Create more level playing field BTL have advantage as mortgage interest payments can be offset. Contributes to rapid growth in BTL. Acting proportionately and gradually to retain mortgage interest rate on basic rate only. Phased withdrawal of higher rate relief.
2. Rent a room relief: rate will increase to £7.5k
3. Inheritance tax: from 2017 will phase in new £175k allowance to sit on top of existing threshhold. Both can be transferred.

Pensions tax relief tapered away to £10k from next year.

Starting to save for a pension - people aren't saving enough. Pensions could be treated like ISAs - taxed when you put it in but not when you take it out - to be investigated.

michaels

lisyloo wrote: »

Why? because they might have to pay it bakc when they are earning enough? or did I miss something?

Scuppered my plan to go into semi-retirement / pension salary sacrifice to minimum wage whilst the kids are at uni

Losing_the_way

Why oh why tax interest relief for LL.

vivatifosi

Annual investment allowance will be set at £200k this year and every other (SMEs)

Tax on North sea oil and gas previously announced going ahead.

Climate change levy exemption going.

Corp Tax: already cut to 20%. Can't go lower while people self incorporate and pay lower rate on dividends. Lower rates allow for tax planning. Reform to taxation of dividend. Dividend tax credit (can't get all details but be aware that they are changing over £5k). Some will see their taxes cut.

Didn't he just say he couldn't cut - he just has - 19% then 18%... Corp Tax.

Lokolo

michaels wrote: »

Scuppered my plan to go into semi-retirement / pension salary sacrifice to minimum wage whilst the kids are at uni

Why would it? Your kids would still get the same amount, but instead of some of it not being re-payable, this would be.

michaels

Lokolo wrote: »

Why would it? Your kids would still get the same amount, but instead of some of it not being re-payable, this would be.

Before I could save the kids money by artificially lowering my income whilst they were at uni. This will no longer be the case so I might as well not change my income when they are at uni (assuming they get there).

lisyloo

Why would it?

I'm guessing that this was a deliberate ploy to get the grant(s) which is no longer available.
The grants were of course for the poor but when you offer something like that the unintended consequences are people deliberately changing their circs.
Apologies if mis-understood.

Lokolo

michaels wrote: »

Before I could save the kids money by artificially lowering my income whilst they were at uni. This will no longer be the case so I might as well not change my income when they are at uni (assuming they get there).

Ah so you were aritifically changing your income so they can get grants they don't need, but you wanted them to have?

lisyloo wrote: »

I'm guessing that this was a deliberate ploy to get the grant(s) which is no longer available.
The grants were of course for the poor but when you offer something like that the unintended consequences are people deliberately changing their circs.
Apologies if mis-understood.

Seems spot on.

Well I am glad that was changed then.

michaels

Lokolo wrote: »

Ah so you were aritifically changing your income so they can get grants they don't need, but you wanted them to have?



Seems spot on.

Well I am glad that was changed then.

I don't set the rules but if the govt incentivises me to act in a certain way presumably that is because our elected represenitives beleive that people should act that way.

lisyloo

Personally I don't see why the poor should be at an advantage.
When I was at uni (eons ago) both my parents worked although low paid. That meant we were just above the cut off point and I was worse of than poorer people.

Isn't it fairer for them to just pay it back like everyone else (when it can be afforded).