Non-partisan mini-budget predictions thread

Swipe

Investors shafted

dunstonh

Strong possibility that the investment bond wrapper could come back into the mainstream again.

hallmark

Swipe said:

Investors shafted

Yeah.  CGT allowance reducing down to £3,000 and tax-free dividend allowance to £500.   Investing outside of tax-free wrappers has been made deeply unattractive.

mebu60

hallmark said:

Swipe said:

Investors shafted

Yeah.  CGT allowance reducing down to £3,000 and tax-free dividend allowance to £500.   Investing outside of tax-free wrappers has been made deeply unattractive.

Down to £3k from £12.3k?

mebu60

MattMattMattUK said:

mebu60 said:

MattMattMattUK said:

mebu60 said:

Combine Income tax and NI into one single Income Tax.

How do you see this working?
(I made an observation on this point earlier in the thread).

I see it working exactly as intended, those who do not pay NI would pay the combined income tax rate rate, largely pensioners earning more than the LEL. 

Earning or receiving? Huge difference. 

It depends on the source, eg. standard income would be taxed as income, dividend as dividend etc.
Base rate from LEL up to £50k would be 32%, although that should probably be increased.
Higher rate from £50-100k (ideally lowering the threshold for the additional rate) to 42%.
Higher rate from £100k upwards 47%.

What about the large and not necessarily wealthy demographic that does not currently pay NI, are they to be taxed at 32% rather than 20% for their base rate on all income? 

hallmark

That was about as cynical as it could possibly have been.  Began by saying the BOE had done a great job (their remit is to keep inflation to 2% and yesterday it hit 11.1%.  You hafta wonder what a bad job would look like).  Then went on to blame Putin and the Ukraine war as often as he could.   From that point virtually every measure was clearly designed with one objective: try to minimise the ways Labour could accuse them of abusing the Most Vulnerable.  And finally, having repeatedly promised no rabbits, they end with saying they're keeping the pension triple lock.

Rachel Reeves is on now, who will most probably manage to be even more revolting.

eskbanker

mebu60 said:

hallmark said:

Swipe said:

Investors shafted

Yeah.  CGT allowance reducing down to £3,000 and tax-free dividend allowance to £500.   Investing outside of tax-free wrappers has been made deeply unattractive.

Down to £3k from £12.3k?

Yes, but staged via £6K in 2023/24.

EthicsGradient

mebu60 said:

hallmark said:

Swipe said:

Investors shafted

Yeah.  CGT allowance reducing down to £3,000 and tax-free dividend allowance to £500.   Investing outside of tax-free wrappers has been made deeply unattractive.

Down to £3k from £12.3k?

In 2 years - next year, CGT allowance down to £6,000, dividend allowance to £1,000; in 2024-5 £3,000 and £500 respectively.

https://www.moneymarketing.co.uk/news/chancellor-halves-cgt-allowance-to-6000/

t1redmonkey

The changes being made for investors sound terrible, I only get about £600 dividends per year so I'm not a big investor at all but looks like even I will be paying tax on that in a couple of years time

eskbanker

t1redmonkey said:

The changes being made for investors sound terrible, I only get about £600 dividends per year so I'm not a big investor at all but looks like even I will be paying tax on that in a couple of years time

Perhaps the companies concerned will reduce their dividends as the recession takes hold....