Budget

[motorbiking]

seems to be a drip drip drip approach CGT +4%. but it seems to hit the Lowest paid worse +8%. I guess that will hit people who are holding assets to sell when they retire (and earn less).

So far storm before calm.. or a last minute u-turn, who knows.

Gut feel CGT will go up another 4pts next year. etc when revenues are lower than expected.

cheaper beer, but heating your home will be more expensive.

tax on employing people is the big one.

Tax, borrow and spend - who'd have thought.

 

[ajohn]

You will need to get all of the detail she mentioned on CGT. other areas as well.

She has kept the fiscal drag aspect at the Tory setting. Lots of the numbers were related to the forecast period. Then some specifics and when they will be spent.

Sunak responce - exactly as would be expected. Trouble is in terms of economics lots in that area back her. That includes borrowing to invest.

 

[blup]

Very impressive, came across as highly intelligent good on detail and on the bigger picture, let’s hope the Tory’s consign the trusses of their world to the dustbin of history

 

[motorbiking]

she delivered the pitch well, there is no doubt. Seemed to be the lower/middle incomers hit the hardest and those with or needing to buy a house in high priced areas.

there was a lot of noise in there that wont raise a penny.

The increase in NI and minimum wage will cost jobs along with the protection rights they proposed. Thats a bit of a tripple whammy for larger employers.

 

[festive]

Stamp duty on second home why? So you've paid tax all your life to afford a 2nd home and now you have to pay tax on that.
Ni employers tax still not addressed by 'pro worker' Labour, so its going up for who? Tell that to people forced into using umbrella companies where they have still 'overlooked' the issue with tax law forcing people working for an umbrella company to pay double taxation eg Employer and Employee NI.

 

[jono_h]

Stamp duty on second home why? So you've paid tax all your life to afford a 2nd home and now you have to pay tax on that.
Ni employers tax still not addressed by 'pro worker' Labour, so its going up for who? Tell that to people forced into using umbrella companies where they have still 'overlooked' the issue with tax law forcing people working for an umbrella company to pay double taxation eg Employer and Employee NI.

Because people buying second homes push up prices, meaning that people without any homes can’t afford to buy one.

 

[motorbiking]

Yes "self employed" people wont be able to pass that rise on.

The stamp duty thing is a southerner tax. You can buy a 5 bed house in Staffordshire and not pay a penny. The same house in SE will set you back 25-30k in tax

But you can avoid council tax on your second home if you want.

 

[aveatry]

Because people buying second homes push up prices, meaning that people without any homes can’t afford to buy one.

Has this ever been proven -or is it just a trope with no proof, people buying homes full stop pushes up prices does it matter who they are. And if someone buys another property to rent out then that starting rent is now going to be higher to re coup some of that extra expenditure.

 

[motorbiking]

But can you imagine someone due to complete on a holiday home, on Friday of say £300k. Stamp duty increase of 33%.

Thats a lot of draught beer you'd need to cry in to, to make that back.

 

[IT Minion]

Has this ever been proven -or is it just a trope with no proof, people buying homes full stop pushes up prices does it matter who they are. And if someone buys another property to rent out then that starting rent is now going to be higher to re coup some of that extra expenditure.

Buying a home no-one lives in (aka A second home) means there are fewer homes available for the same number of people needing homes. Rental properties are different.

It's basic economic theory (so yes it might be a trope) that reducing supply drives up prices.

 

[motorbiking]

But people do live in them - they don't just leave them empty.

prices go up because someone can borrow or has the money to pay more. Its as simple as that.

 

[IT Minion]

Do any low paid people actually care about CGT? How many people earning less than the average salary of 30k encounter CGT at all?

 

[aveatry]

I did pick up on "unused pension pot" now to be taxed. So as I understand some pensions pay out to the spouse a lump sum tax free when the person dies. So are they now going to tax that lump sum. Remember that lump sum has been paid out because the person taking the pension has died usually prematurely and so has had hardly anything from the pension they have paid into so a proportion depending on how long they have been drawing the pension is then paid out to the spouse.

 

[IT Minion]

But people do live in them - they don't just leave them empty.

prices go up because someone can borrow or has the money to pay more. Its as simple as that.

No, some people do, but not all.

I know some people who own a second home up in Scotland that is empty most of the year.

And it isn't that simple but this isn't the thread for it.

 

[motorbiking]

I did pick up on "unused pension pot" now to be taxed. So as I understand some pensions pay out to the spouse a lump sum tax free when the person dies. So are they now going to tax that lump sum. Remember that lump sum has been paid out because the person taking the pension has died usually prematurely and so has had hardly anything from the pension they have paid into so a proportion depending on how long they have been drawing the pension is then paid out to the spouse.

Currently a pension pot or draw down pension is not included for the purpose of calculating IHT. They intend to change that so the "unused" pension is taxed. As far as I am aware they are not changing the rules for IHT for surviving spouses.

It's obviously a big impact for people who opted for a draw down pension or haven't taken their pension and anyone living as so called "common law" spouse. That is actually huge.

I'm surprised they didn't reduce the tax free lump sum or cap tax free pot sizes.