Precautions in case of a Labour win

mat5664

If Corbyn becomes PM, there will be serious implications for pensions:

- the Nationalisation program will decimate current pension values as will the plans to 'give' shares to workers.

- Labour will probably eliminate higher rate tax relief within days on coming to power

- They might also cut tax free lump sum entitlement.

Still time to take precautions. If you are over 55 you can take tax free lump sum now without impacting on MPAA. Move funds to a safer place etc.

(I didn't vote in the last election, so this is not a party political message, just based on Labour plans).

worried_jim

£5b Robin Hood tax on the city wont help your/my investments much either.

JoeCrystal

How about the wait and see on what all the election manifestos say first? It is still too early, and we still have not got the election yet either. Remember, they need to appeal to all ages as well.

Turpinr

I'm already in the middle of a Brexit/Johnson/Tory nightmare.
What happens when uncle Donald comes for the nhs ,

MaxiRobriguez

On the other side of the coin, state pension access will probably go up faster under a Tory government than a Labour one, NHS may become partly-privatised at the point of use if a UK/US trade deal is panic signed and the likely various changes to benefit lower income earners may spur more intra-UK movement and improve productivity.

Horses for courses, and Labour are not favourites to win the most seats let alone a majority, and even if they did, they wouldn't be able to enact policies within days because it would follow legislation process and implementation periods which will takes weeks/months/years.

Calm your chops, basically.

Albermarle

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Labour will probably eliminate higher rate tax relief within days on coming to power

As 40% tax relief on pension is basically the opposite of redistribution of wealth , and mainly enjoyed by richer voters , then this will always be an easy target for any government. Surprised it has survived so long.

They might also cut tax free lump sum entitlement.

This would be deeply unpopular in many parts of society so unlikely to happen.

Move funds to a safer place etc.

What happens in UK has very limited impact on global financial markets and even the FTSE 100 is mainly populated by global companies.

Anyway the current odds with Ladbrokes for a Labour majority government are 16/1 .
There are two joint favourites - Conservative majority or Hung parliament .

Malthusian

If Labour has won the election it means John McDonnell is in charge. McDonnell is a pragmatist; unlike Seamus Milne he is willing to delay the revolution to secure a ministerial chauffeur and salary.

Hence the "tea offensive" where he spent many hours persuading City fat cats that a Corbyn government wouldn't be so bad, his opposition to deselection of moderates and anti-Semitism, and his open courting of counter-revolutionaries like Liam Byrne (an arch Blairite and founder of the Progress think tank, Momentum's most hated enemy).

There is every possibility that under a Corbyn government with McDonnell in defacto charge, proposals like nationalising all industries and confiscating 10% of UK company shares will be watered down or kicked into the long grass.

By contrast it is very possible that a Tory government will abolish higher rate relief (George Osborne wanted to abolish tax-relieved pensions entirely) or restrict tax free cash.

The 5-yearly red/blue merry go round is a sideshow when it comes to pension planning which happens over a timeframe of 50-70 years or more.

[Deleted User]

Confiscation of company shares and many other wonderful ideas were McDonnell’s to start with. I have learned to trust the Marxists when they promise confiscations. The timeline is uncertain but typically such policies cause capital flight followed by capital controls.

The probability of a Labour government is low but the consequences are high. I am already out of the country. If Labour gets elected, will take all investments I can extract out of Britain and sell anything currently invested in FTSE.

Thrugelmir

Turpinr wrote: »

I'm already in the middle of a Brexit/Johnson/Tory nightmare.
What happens when uncle Donald comes for the nhs ,

Suggest you refrain from viewing social media.

SonOf

If you are over 55 you can take tax free lump sum now without impacting on MPAA. Move funds to a safer place etc.

It was Labour who increased the amount of tax free cash available on pensions in 2006.

Tax free cash helps the economy. Not hinder it. And it is also one of the smaller costs to the treasury in respect of pensions. Tax relief and salary sacrifice being two major ones. Indeed, salary sacrifice has boomed since auto-enrolment and has become one of fastest-growing costs to the treasury in terms of lost revenue on pensions.

Major pension changes require primary legislation and time to allow for implementation.

The chances of a Labour government outright is very low. The odds are on another hung parliament or small Tory majority. A hung parliament led by Labour would not have the ability to put through any major legislation. To do that sort of thing, you need a decent majority.

Brynsam

mat5664 wrote: »

- They might also cut tax free lump sum entitlement.

Still time to take precautions. If you are over 55 you can take tax free lump sum now without impacting on MPAA. Move funds to a safer place etc.

Aren't you forgetting that some schemes (Principal Civil Service PS for one) have a 'built in' tax free lump sum? Also MPs themselves rather like tax free lump sums... The idea that all this can be overturned on day one is scaremongering in the extreme.