What tax changes are you expecting at the budget?

IvanOpinion

I'm pretty much ignoring all the garbage in the media at the minute.
Most of it is only there to drive the gullible into an apoplectic frenzy.
The media have thrown so much mud around over the last couple of months that some of it is likely to stick, and then they will be claiming the credit for predicting it.

Grumpy_chap

intalex said:

Grumpy_chap said:

In terms of mechanics, how would this work?  Would it mean all prior tax returns get re-opened?
Consider an individual making £10k extra per year.  It is taxed at appropriate marginal rates - may well be within basic rate 20% band.
Second individual makes £100k over ten years as capital gain.  An extra £100k in one year, some will automatically land in the top tax rate and mean loss of personal allowance, childcare, etc.  
The two get the same income, now suffering income tax, but the retained amounts differ wildly.

This will encourage people to utilise their ISA allowances for planned investments first before considering cash. And for multi-year fixed rate cash accounts with interest compounding, they could offer the option of having interest taxed annually (default) or at maturity (via opt-in during opening).

AIUI, any money in ISAs, multi-year deposit accounts etc are taxed as income in any case (with the savings allowances where appropriate).
Capital cain tax is on things like second-homes / BTLs, artwork, watches and such like.  Assets acquired and then sold a number of years later at an uplift in value.  (Watches and such like sold quickly are treated as trade so not CGT)

prowla

Removal of free bus passes for pensioners.

Outlawing of pensioner discounts at my local chippie.

Pensioners have to pay for flu jabs.

Special allowance for MP's gifted suits.

subjecttocontract

Perhaps they'll turn the clock back and introduce a compulsory 6 day, 48 hour working week......to get the Country back on its feet !

ZeroSum

valueman1 said:

Some say Stamp Duty is a bad tax because it reduces the incentive to move. People down south and in London, in particular, already pay far more Stamp Duty than those in other parts of the country.

Be that as it may, proposing to replace it with an annual tax is bonkers & also would see London & south pay more regardless, and would probably end up paying more over a lifetime given you pay nothing on 1st £250k, or £425k for FTBs. The thresholds being as high as they are is entirely pandering to London. Any stamp duty tax breaks, it just increases the selling price anyway, so not really gaining in the long run probably worse off

valueman1

Don’t forget, a lot of houses in London are worth over £1.5m at which point the 12% stamp duty rate kicks in.

ZeroSum

valueman1 said:

Don’t forget, a lot of houses in London are worth over £1.5m at which point the 12% stamp duty rate kicks in.

It'd raise a £1.5m house to £1.59m
You expect me to have any sympathy for millionaires who are part of the problem of the regional inequality?
That £1.5m london house, would likely be stamp duty free for a FTB round my way.

Niv

ZeroSum said:

valueman1 said:

They could impose a property tax say 0.25% of purchase value per annum to replace stamp duty but the idea hasn’t be leaked/ floated.

Why would you replace a one off transaction tax with a rolling annual one?

What was floated was replacing council tax with a property value tax of 0.5%. Great for those like me living in NE where houses are relatively cheap & affordable. Not so for those down south. However it would be a genuine levelling up policy.

I like this idea. It would reduce my tax! I live in the south west in a fairly decent sized house so think if that was a plan then they would have to look at that percentage as I don't feel that the intention would be that houses like mine paid less tax (based on the mood music here and other platforms).

valueman1

ZeroSum said:

valueman1 said:

Don’t forget, a lot of houses in London are worth over £1.5m at which point the 12% stamp duty rate kicks in.

It'd raise a £1.5m house to £1.59m
You expect me to have any sympathy for millionaires who are part of the problem of the regional inequality?
That £1.5m london house, would likely be stamp duty free for a FTB round my way.

I think you’re missing the point.  Stamp Duty in the higher price brackets works out at so much people decide not to move. Why would you if it’s going to cost over £100k in tax.

ZeroSum

valueman1 said:

ZeroSum said:

valueman1 said:

Don’t forget, a lot of houses in London are worth over £1.5m at which point the 12% stamp duty rate kicks in.

It'd raise a £1.5m house to £1.59m
You expect me to have any sympathy for millionaires who are part of the problem of the regional inequality?
That £1.5m london house, would likely be stamp duty free for a FTB round my way.

I think you’re missing the point.  Stamp Duty in the higher price brackets works out at so much people decide not to move. Why would you if it’s going to cost over £100k in tax.

But it doesn't affect ordinary folk since they're not buying higher band houses. Ordinary folk either pay nothing, or a couple grand on a fairly expensive house that % wise isn't that much. Your plan is to tax the working classes more & to tax those with the broadest shoulders less