Impact of tax raid on DC pots and S&S Isas?

michaels

Increased taxation of business profits will reduce the income from and thus the value of shares.  (It will also reduce investment in the UK and thus reduce job creation).  Good to see it is DC and not DB pensioners who will be paying yet again.

AlanP_2

michaels said:

Increased taxation of business profits will reduce the income from and thus the value of shares.  (It will also reduce investment in the UK and thus reduce job creation).  Good to see it is DC and not DB pensioners who will be paying yet again.

Well no, as presumably those DC pension investors who take that view will allocate their money based on where they expect returns to come from (efficient market remember).

So will you be selling all your UK investments today and investing them abroard?

dunstonh

And the business grants and reliefs increased will indirectly increase values.   

TVAS

The tax take pre Covid has been declining for years due to the growth of crappy minimum wage jobs, large tech firms not paying tax in the UK, established profitable UK firms like Last Minute, Boots and Cadbury being taken over by usually and yank firm and the tax moved elsewhere like Luxembourg or Switzerland. 

All previous pussey UK governments have done nothing about this so if you want the burden to be shared have a go at the next divvy prospective political candidates that come knocking on your door. This way if we have more firms paying 19% corporation tax in the UK we would not have needed the tax hike and more firms will set up in the UK.

Thrugelmir

michaels said:

Increased taxation of business profits will reduce the income from and thus the value of shares.  (It will also reduce investment in the UK and thus reduce job creation).  Good to see it is DC and not DB pensioners who will be paying yet again.

What % of your portfolio is even invested in the UK?  What about all the foreign owned UK companies that aren't listed on the London stock markets?  

michaels

TVAS said:

The tax take pre Covid has been declining for years due to the growth of crappy minimum wage jobs, large tech firms not paying tax in the UK, established profitable UK firms like Last Minute, Boots and Cadbury being taken over by usually and yank firm and the tax moved elsewhere like Luxembourg or Switzerland. 

All previous pussey UK governments have done nothing about this so if you want the burden to be shared have a go at the next divvy prospective political candidates that come knocking on your door. This way if we have more firms paying 19% corporation tax in the UK we would not have needed the tax hike and more firms will set up in the UK.

It isn't just that 19% of something is better than 25% of nothing, if the 'something' is happening in the UK then there will also be a whole bunch of payroll taxes being collected.  I am surprised that the current chancellor is more interested in the politics of the decision than the economics - or perhaps it just indicates a certain level of ambition for internal promotion.....

Thrugelmir

michaels said:

TVAS said:

The tax take pre Covid has been declining for years due to the growth of crappy minimum wage jobs, large tech firms not paying tax in the UK, established profitable UK firms like Last Minute, Boots and Cadbury being taken over by usually and yank firm and the tax moved elsewhere like Luxembourg or Switzerland. 

All previous pussey UK governments have done nothing about this so if you want the burden to be shared have a go at the next divvy prospective political candidates that come knocking on your door. This way if we have more firms paying 19% corporation tax in the UK we would not have needed the tax hike and more firms will set up in the UK.

It isn't just that 19% of something is better than 25% of nothing, if the 'something' is happening in the UK then there will also be a whole bunch of payroll taxes being collected.  I am surprised that the current chancellor is more interested in the politics of the decision than the economics - or perhaps it just indicates a certain level of ambition for internal promotion.....

Corporation tax is just one factor of many in company decision making. They are also many allowances available to companies when deriving taxable profit. So their actual rate of tax paid is lower than the headline rate. That's the inherent danger with social media. Discussion becomes based on headlines not the full facts,  turns political and becomes one of self interest. 

kinger101

TVAS said:

The tax take pre Covid has been declining for years due to the growth of crappy minimum wage jobs, large tech firms not paying tax in the UK, established profitable UK firms like Last Minute, Boots and Cadbury being taken over by usually and yank firm and the tax moved elsewhere like Luxembourg or Switzerland. 

All previous pussey UK governments have done nothing about this so if you want the burden to be shared have a go at the next divvy prospective political candidates that come knocking on your door. This way if we have more firms paying 19% corporation tax in the UK we would not have needed the tax hike and more firms will set up in the UK.

Please explain to me how you you'd stop multinationals diverting profits to low tax jurisdictions.  And why the Treasury hasn't previously thought about your solution.

kinger101

michaels said:

Increased taxation of business profits will reduce the income from and thus the value of shares.  (It will also reduce investment in the UK and thus reduce job creation).  Good to see it is DC and not DB pensioners who will be paying yet again.

I doubt there's much correlation between UK corporation tax rates and the performance of the types of diversified global portfolios you'd find in most pension funds or ISAs.