Budget 2018

Thrugelmir

Triumph13 wrote: »

All personal consideration aside, I think that may be a mistake as it gives ammunition to the left to claim it's a budget for the rich.

Penalises one income families if it's not adjusted. Is earning £50k per annum considered to be rich? In a world where China is creating 2 billionaires a week.

lazyred

DairyQueen wrote: »

Why? She is hideous. I recall her contribution to the election coverage (if you can call it 'contribution'). Blatantly biased and viewers left in no doubt about which way she votes, unlike the always professional David Dimbleby who (as I recall) had to shut her up by switching to other contributors.

First time I have ever switched channels midst an election broadcast. No apologies for switching off the radio and TV whenever Ms 'I am left wing and wish to make it common knowledge' is asked for her opinion.

If I wanted biased opinion I would subscribe to a politically affiliated newspaper. What I despise most about her is her pretence of neutrality.

Shame on her.

I think this reveals more about you than her. LK is an excellent journalist.

Ironically she is widely reviled by Corbyn supporters for being a Tory. There was a petiton to get her sacked becuse of bias against Labour, she was reprimanded for showing bias against Corbyn over police firearms and she needed a bodyguard at Labour's conference.

ColdIron

A small bit of good news for Capital Gains Tax

• This measure increases the Capital Gains Tax annual exempt amount to £12,000 for individuals and personal representatives and £6,000 for trustees of settlements for the period 2019 to 2020.

https://www.gov.uk/government/publications/capital-gains-tax-annual-exempt-amount-for-tax-year-2019-to-2020/capital-gains-tax-annual-exempt-amount-for-tax-year-2019-20

Dazed_and_confused

When the High Income Child Benefit Charge was introduced in January 2013 the threshold for it to apply was £50,000 (well strictly £50,100) and the basic rate threshold was about £42.5k.

So you generally had to have income 17.5% above the higher rate threshold before it applied.

From April 2020 the standard higher rate threshold is £50,000. And the threshold for the High Income Child Benefit Charge is £50,000.

Should it be renamed the Not As High Income As It Used To Be Child Benefit Charge

Malthusian

marlot wrote: »

The papers had lots on pension reform which was going to happen - such as moving to a shared Dutch style DC scheme. None of which happened.

They are going to have a consultation apparently. Hopefully that means it's been kicked into the long grass.

beaker141

Dazed_and_confused wrote: »

When the High Income Child Benefit Charge was introduced in January 2013 the threshold for it to apply was £50,000 (well strictly £50,100) and the basic rate threshold was about £42.5k.

So you generally had to have income 17.5% above the higher rate threshold before it applied.

From April 2020 the standard higher rate threshold is £50,000. And the threshold for the High Income Child Benefit Charge is £50,000.

Should it be renamed the Not As High Income As It Used To Be Child Benefit Charge

Maybe this is the point where they then peg it to the higher rate threshold so anyone in higher rate tax always pays the charge ?

I'll never accept it as fair until they look at child benefit on a household basis - ridiculous that a couple could earn 49.9k each and still keep the full amount.

Alexland

beaker141 wrote: »

Maybe this is the point where they then peg it to the higher rate threshold so anyone in higher rate tax always pays the charge ?

Yes I was wondering that too - it makes things a lot simpler if they are linked going forwards. It also takes away the decision on if to pay enough into the pension to get child benefit or also enough to save all 40% tax.

Moving higher rate tax up to £50k isn't just a tax saving it means I can reduce my pension contributions a bit and take more income. I will still be making healthy contributions but sometimes it felt like tax efficiency was causing me to contribute more than I would have otherwise chosen giving me greater future LTA risk and making it harder to fill S&S ISAs which might be useful if I wanted to retire before reaching the age in which the government might let me draw pension in future.

Alex

kidmugsy

Has he done a Brown? Will there be unwelcome details to be winkled out of the paperwork over the next few days and weeks? Place your bets now!

zagfles

WobblyDog wrote: »

The rise in the national living wage will have a small impact on extreme salary sacrificers, apart from that it doesn't seem to have much effect on pensions, which is a relief.

The other negative for such people is the increase in the HRT threshold for those who make lumpy sal sacs, as the NI UEL is aligned to the HRT threshold. So eg if you earn well over the HRT threshold and sal sac for part of the year down to NMW, you'll end up paying more NI.

zagfles

Alexland wrote: »

Yes I was wondering that too - it makes things a lot simpler if they are linked going forwards. It also takes away the decision on if to pay enough into the pension to get child benefit or also enough to save all 40% tax.

Plus the marriage allowance transfer is lost at the same point, plus the lower zero rate interest band.

For someone earning >50k with kids and a non earning spouse there'll be at least 3 good reasons to sal sac/pay into a pension to get income/ANI below £50k.