Labour's LTA plans?

MarkCarnage

Fiscal drag has become the weapon of choice in an inflationary environment. 

It was always an attractive choice for politicians anyway, and even when a seemingly attractive exemption limit was initially introduced, leave it the same for 20 years and it gradually erodes, increasing the tax take. 

CGT used to have an indexation allowance, that got abolished and a seemingly generous allowance put in place. That's now been reduced very significantly, and no inflation indexation.....

I'd have no problem personally with putting a bit more emphasis on IHT at a lower rate...but apparently it's 'unpopular' with people who never have any prospect of paying it or who have no idea how it works but have been brainwashed by some elements of the media. 

Property taxation is also very regressive at the higher end of the scale and I would address that and reduce stamp duty which is a tax on mobility. 

RogerPensionGuy

MarkCarnage said:

Fiscal drag has become the weapon of choice in an inflationary environment. 

It was always an attractive choice for politicians anyway, and even when a seemingly attractive exemption limit was initially introduced, leave it the same for 20 years and it gradually erodes, increasing the tax take. 

CGT used to have an indexation allowance, that got abolished and a seemingly generous allowance put in place. That's now been reduced very significantly, and no inflation indexation.....

I'd have no problem personally with putting a bit more emphasis on IHT at a lower rate...but apparently it's 'unpopular' with people who never have any prospect of paying it or who have no idea how it works but have been brainwashed by some elements of the media. 

Property taxation is also very regressive at the higher end of the scale and I would address that and reduce stamp duty which is a tax on mobility. 

CGT has gone from 12K PA to 6K PA and going to 3K PA in these last three years. 
.
SDLT rates has been moved up a lot over the years and failing to build houses, plus government mortgage loans backed by tax payers has fuelled that inflation too much.
☆☆☆
https://www.stampdutyrates.co.uk/historic-rates.html
☆☆☆

RogerPensionGuy

Please excuse a drift, but I think the following link just shows that Labour appear very happy playing short-term football changing the rules all the time.

I know many people in the car industry and when the rules were implemented for no more selling of new petrol and diesel engines at date point 2030 it caused them much upset and difficult planning, then that was rolled back to 2035 and again more upset and changing of plans again. 

This flip flopping policy on ICE(internal combustion engine) cars is very awkward stuff indeed, many many years are required to do stuff like this.

Now Labour are reconfirming they will change 2035 to 2030 if they win the election. Just imagine now the industry has to try covering the 2030 & 2035 mandate now, just assume Labour get in to power January 2025 and they kick it around for a year, that would be 2026 possibly before confirmation. What a disaster it would be, so I can only guess if they get in to power, they will change date to 2030 immediately to allow more time and allow more stability for the industry. 

Reference the LTA, I have planned that Labour will indeed action changes immediately and anti-forstalling rules will cause even more chaos, I work or worked in an industry that is super short of suitable employees, but as activation of my pensions is earlier than planned, I probably won't do any more paid employment because paying loads of 40% Tax isn't personally worth it for me and my lifestyle/time.

With the ongoing by-elections and possibly reconfirming that people just want a change, the Conservatives will be laying plenty of trapps in the upcoming budget in March and I expect the autumn statement as well as this all allows more time for the Conservatives to limit seat losses at this next election and enhance the chances Labour will only get one sitting this time around. 
☆☆☆

https://www.current-news.co.uk/labour-restore-2030-zev-mandate-target-shadow-roads-minister/

Hoenir

RogerPensionGuy said:

Now Labour are reconfirming they will change 2035 to 2030 if they win the election.

 There's no point endlessly dissecting everything people people say. If international motor companies aren't making sufficient quantity of the right product. Nor is the infrasructure in place. What then? Do we return to an era of horse and cart. 

RogerPensionGuy

More press coming out again that Labour will indeed play back-again on the LTA.
...
https://www.professionalpensions.com/news/4180146/reports-labour-ditches-plans-lta-carve-public-sector-schemes
...
https://www.thesun.co.uk/money/26229471/pension-lifetime-allowance-doctors-teachers-retirement-labour-conservative-party/
...
https://www.actuarialpost.co.uk/article/labour-ditches-lta-plans-without-public-sector-carve-out-23069.htm

UrbanAchiever

So if they reintroduce it with a carve out for public sector workers, when I'm nearly ready to retire, I'll leave my private sector job, get a public sector job, then retire.  I guess there may be a qualifying period though.  That's a tough one to legislate for.

Grumpy_chap

UrbanAchiever said:

So if they reintroduce it with a carve out for public sector workers, when I'm nearly ready to retire, I'll leave my private sector job, get a public sector job, then retire.  I guess there may be a qualifying period though.  That's a tough one to legislate for.

Those articles linked by RPG all suggest that the "carve out" is been dropped as an idea.  Which is not surprising as it would seem to be entirely unworkable.

RogerPensionGuy

Grumpy_chap said:

UrbanAchiever said:

So if they reintroduce it with a carve out for public sector workers, when I'm nearly ready to retire, I'll leave my private sector job, get a public sector job, then retire.  I guess there may be a qualifying period though.  That's a tough one to legislate for.

Those articles linked by RPG all suggest that the "carve out" is been dropped as an idea.  Which is not surprising as it would seem to be entirely unworkable.

Yes indeed, it looks like they have back tracked on the carve-out, but more interesting to me, no mention they are walking back from reintroducing the LTA. So in my head currently Labour will form the next government and indeed poke the LTA from the ashes.

Thankfully I have planned for all the above I hope. 

Cus

RogerPensionGuy said:

Grumpy_chap said:

UrbanAchiever said:

So if they reintroduce it with a carve out for public sector workers, when I'm nearly ready to retire, I'll leave my private sector job, get a public sector job, then retire.  I guess there may be a qualifying period though.  That's a tough one to legislate for.

Those articles linked by RPG all suggest that the "carve out" is been dropped as an idea.  Which is not surprising as it would seem to be entirely unworkable.

Yes indeed, it looks like they have back tracked on the carve-out, but more interesting to me, no mention they are walking back from reintroducing the LTA. So in my head currently Labour will form the next government and indeed poke the LTA from the ashes.

Thankfully I have planned for all the above I hope. 

I suspect Labour will reintroduce the LTA at a level that appeases the maths behind the public sector carve out group, yet allows them to say that they have reversed the Tory decision that 'protected the rich'.  Some fudge.  I'm offering a spread at £1.6mn-£1.8mn..

michaels

Cus said:

RogerPensionGuy said:

Grumpy_chap said:

UrbanAchiever said:

So if they reintroduce it with a carve out for public sector workers, when I'm nearly ready to retire, I'll leave my private sector job, get a public sector job, then retire.  I guess there may be a qualifying period though.  That's a tough one to legislate for.

Those articles linked by RPG all suggest that the "carve out" is been dropped as an idea.  Which is not surprising as it would seem to be entirely unworkable.

Yes indeed, it looks like they have back tracked on the carve-out, but more interesting to me, no mention they are walking back from reintroducing the LTA. So in my head currently Labour will form the next government and indeed poke the LTA from the ashes.

Thankfully I have planned for all the above I hope. 

I suspect Labour will reintroduce the LTA at a level that appeases the maths behind the public sector carve out group, yet allows them to say that they have reversed the Tory decision that 'protected the rich'.  Some fudge.  I'm offering a spread at £1.6mn-£1.8mn..

Thoughts on the AA?  Have to say I can see them doing something more 'spectacular' on pensions, perhaps via capping the tax relief rate (which obviously doesn't hit DB public sector workers)