Budget

[motorbiking]

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

Any standard rate tax payer receiving a share of a stock plan as part of divorce just got whacked as well as anyone who is given shares in the company as part of special bonuses, share save schemes etc. Then you've got people who have invested a bit in the stock market but not via an ISA, having used their cash ISA limit. I know plenty of lower income people who dabble on the stock market.

Lots of people in your industry get shares particularly in PE and VC funded businesses. its not just the Veeps,

 

[IT Minion]

Any standard rate tax payer receiving a share of a stock plan as part of divorce just got whacked as well as anyone who is given shares in the company as part of special bonuses, share save schemes etc. Then you've got people who have invested a bit in the stock market but not via an ISA, having used their cash ISA limit. I know plenty of lower income people who dabble on the stock market.

Lots of people in your industry get shares particularly in PE and VC funded businesses. its not just the Veeps,

So no. Only those who are better paid than average.

 

[motorbiking]

Do you have shares outside of an ISA?

 

[ajohn]

Seemed to be the lower/middle incomers hit the hardest and those with or needing to buy a house in high priced areas.

A different sort of pundit - financial type reckons the top 10% get hit hardest. He also points out that CGT now moves closer to income tax. Reeves said still lowest in the G7. It doesn't raise that much either. That I think was over the forecast period. There were also comments on CGT discounts.

The NI increase - some finish up paying none. Again I think the gains were over the forecasts period. Lots of noise concerning it's called NI but it's not the one they said they would leave as is.

Fiscal plan. The reserve seems to be back ~£16b. That will be over the forecast period. So it looks like the only change really is borrowing to invest. Seen as good idea but how much will the markets accept?

 

[Ihavenojob]

Not seen any of the budget apart from the headline regarding employers NI. A move in the right direction, but not sure if employees will have to pay NI at that threshold. I dare say employers will find a way to claw it back in lower wage increases.

 

[motorbiking]

A different sort of pundit - financial type reckons the top 10% get hit hardest. He also points out that CGT now moves closer to income tax. Reeves said still lowest in the G7. It doesn't raise that much either. That I think was over the forecast period. There were also comments on CGT discounts.

The NI increase - some finish up paying none. Again I think the gains were over the forecasts period. Lots of noise concerning it's called NI but it's not the one they said they would leave as is.

Fiscal plan. The reserve seems to be back ~£16b. That will be over the forecast period. So it looks like the only change really is borrowing to invest. Seen as good idea but how much will the markets accept?

Sorry, yes someone on around £60k a year, who lives in the SE of England, lets say and obviously the group of "working people" who already pay 1/3rd of all income tax. These were probably those who shifted their vote from Tory to LibDem or Labour.

I honestly think CGT will go up again next year.

I didn't hear her Lowest in the G7.. boll@x. Since when was the USA no longer in the G7?

 

[motorbiking]

Not seen any of the budget apart from the headline regarding employers NI. A move in the right direction, but not sure if employees will have to pay NI at that threshold. I dare say employers will find a way to claw it back in lower wage increases.

Yeah it always feels good when "the boss" picks up the bill, but it will mean hiring freezes, benefits and pay rise caps. it certainly wasn't a budget to encourage business investment.

 

[motorbiking]

some good analysis for those who want the 5 min version

 

[jono_h]

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.

It’s not so much the price rise (a little inflation in most things is seen as good) but the rate of the rises that it fuels.

i can’t quote peer reviewed evidence, but let me give an example from an area I know, Salcome, Devon. Salcombe has become a tourist hotspot, and fights with Sandbanks for the most expensive property in the UK badge. The winter population of 1800, becomes 19,000 in the summer - so there are 17,000 beds available many of them in second (holiday) homes.

8a Fore Street has sold 4 times between 1995 and 2015. In the 3 years between 1995 and 1998 it rose by £14k (10%). Between 2013 and 2015 by £85k (20%).

That is why I think that second home ownership increases the rate at which house prices rise.


Equally if you’re buying a second house to rent, or holiday let, the higher rate stamp duty should just be part of your business model. And if you’re fortunate enough to be in the position to be able to afford a second home for yourself then you can probably find the extra.

 

[ajohn]

rules for IHT for surviving spouses.

That does appear to be the case. I think the change comes if it's left to someone.

 

[motorbiking]

Salcome is probably not a good example. I was there in the summer, absolutely beautiful place a million times better than sand banks. People happy to spend millions on modest property and as you say in the summer months, Fulham and Chelsea empty out with every Tarquin and Jemima and their kids Maximilian, Beatrice and Matilda to summer there.

Simple supply and demand.

 

[ajohn]

Since when was the USA no longer in the G7?

They do treat it as income.

 

[motorbiking]

They do treat it as income.

I'm not going over this again. Investments held over 12 months are not treated as income.

Income under £500k pa = 15% CGT
Income over £500k pa = 20% CGT.
= less than the UK.

Hence Rachel Reeves pants are on fire, when she says UK CGT is the lowest in the G7.

That does appear to be the case. I think the change comes if it's left to someone.

I've not seen anything that says a spouse cannot inherit tax free.
Previously it was excluded from the Estate.

Of course the kids will now pay a lot more tax. 10s to 100s of thousands more and anyone in a "common law" arrangement is f**cked

it doesn't affect anyone with a nice final salary pension unless they die young and are entitled to a pay out. Most of those schemes pay the surviving spouse a reduced rate (spousal benefit) so there is no pot to tax.

 

[IT Minion]

Do you have shares outside of an ISA?

I'm in no way lowly paid.

 

[ajohn]

some good analysis for those who want the 5 min version

Not so good really as no account for more investment in the UK. The aim. Also what is the effect of companies businesses that finish up paying no NI?

Taxation has inflation been considered? Some reckon Lamont's was a bit higher.