LTA Frozen

Filo25

NedS said:

Mick70 said:

I think there be more to come next year when hopefully the economy is starting to recover .  I expected online retailers to get hit and capital gains tax also with increase in holiday lets as second properties 

I agree. It was clear he wasn't going to blatantly put up taxes this time around (not the right time to do so?), so we have a raft of stealth measures such as freezing allowances (LTA, personal income tax allowance) until 2026 which will still raise substantial increases in tax revenues over the next 5 years. Next year, after proper consultation, I would expect to see more drastic measures under consideration such as pensions reform maybe including flat rate tax relief at 25% and banning of salary sacrifice or NI payable on gross earnings before sacrifice. If a flat rate of tax relief at 25% were introduced, that would give scope to raise basic rate income tax from 20%, maybe to 21% or 22% and still give BRT payers something back to lessen the blow of a tax hike, whilst hitting HRT payers harder.

Surely that would be a pretty poor deal for basic rate tax payers as well once the impact of salary sacrifice was lost?

michaels

Filo25 said:

NedS said:

Mick70 said:

I think there be more to come next year when hopefully the economy is starting to recover .  I expected online retailers to get hit and capital gains tax also with increase in holiday lets as second properties 

I agree. It was clear he wasn't going to blatantly put up taxes this time around (not the right time to do so?), so we have a raft of stealth measures such as freezing allowances (LTA, personal income tax allowance) until 2026 which will still raise substantial increases in tax revenues over the next 5 years. Next year, after proper consultation, I would expect to see more drastic measures under consideration such as pensions reform maybe including flat rate tax relief at 25% and banning of salary sacrifice or NI payable on gross earnings before sacrifice. If a flat rate of tax relief at 25% were introduced, that would give scope to raise basic rate income tax from 20%, maybe to 21% or 22% and still give BRT payers something back to lessen the blow of a tax hike, whilst hitting HRT payers harder.

Surely that would be a pretty poor deal for basic rate tax payers as well once the impact of salary sacrifice was lost?

But it can be sold as an increase to the sheeple and the press who don't understand anyway.

arnoldy

tibbles209 said:

It's not great, but overall I've come away from the budget feeling relieved. Could have been a lot worse. At least we are getting to keep higher rate tax relief for the time being.

Yes, and no changes to ISA allowance of 20k, no mention of wealth tax or extension of NI. Result, and hopefully more hacking away at public sector waste rather than any more talk of tax rises.

Mick70

Speculation to resume early next year 😀