Labours first budget and likely outcomes

[Good Plan Ted]

So looks like CGT is going to change so maybe too late to sell that 2nd home or rental property, how will this effect shares will a big sell off happen to avoid the CGT uplift and maybe transfer Gold coins?

[mikeiow]

Good Plan Ted said:

So looks like CGT is going to change so maybe too late to sell that 2nd home or rental property, how will this effect shares will a big sell off happen to avoid the CGT uplift and maybe transfer Gold coins?

Does it?
Got a solid source for that, or is this speculation?

[markh1973]

mikeiow said:

Good Plan Ted said:

So looks like CGT is going to change so maybe too late to sell that 2nd home or rental property, how will this effect shares will a big sell off happen to avoid the CGT uplift and maybe transfer Gold coins?

Does it?
Got a solid source for that, or is this speculation?

And what relevance do gold coins have to anything?

[ferret50]

markh1973 said:

mikeiow said:

Good Plan Ted said:

So looks like CGT is going to change so maybe too late to sell that 2nd home or rental property, how will this effect shares will a big sell off happen to avoid the CGT uplift and maybe transfer Gold coins?

Does it?
Got a solid source for that, or is this speculation?

And what relevance do gold coins have to anything?

Please do not give Rachel Reeve any more ideas!

Tax the air you breath
Tax the gold coins you buy
Tax the ladies of doubtfull virtue
Tax the kids pocket money

[E63eeeeee...]

ferret50 said:

markh1973 said:

mikeiow said:

Good Plan Ted said:

So looks like CGT is going to change so maybe too late to sell that 2nd home or rental property, how will this effect shares will a big sell off happen to avoid the CGT uplift and maybe transfer Gold coins?

Does it?
Got a solid source for that, or is this speculation?

And what relevance do gold coins have to anything?

Please do not give Rachel Reeve any more ideas!

Tax the air you breath
Tax the gold coins you buy
Tax the ladies of doubtfull virtue
Tax the kids pocket money

Good point, it's unlikely she's heard of gold.

[mikeiow]

markh1973 said:

mikeiow said:

Good Plan Ted said:

So looks like CGT is going to change so maybe too late to sell that 2nd home or rental property, how will this effect shares will a big sell off happen to avoid the CGT uplift and maybe transfer Gold coins?

Does it?
Got a solid source for that, or is this speculation?

And what relevance do gold coins have to anything?

Come on, Ted, I hear* you have some good plans - share your sources!

from your PH username

[PoorCarCollector]

Good Plan Ted said:

So looks like CGT is going to change so maybe too late to sell that 2nd home or rental property, how will this effect shares will a big sell off happen to avoid the CGT uplift and maybe transfer Gold coins?

A CGT change may happen, but my money is on it being phased in gradually, to align with income tax, it's not going to be a 'cliff face' increase

Very doubtful they'll want to do anything drastic quickly, with the economy on a bit of a knife edge.

[Snozzer]

I'd put money on them bringing untouched pension pots into IHT. I'm surprised it's outside now TBH. That could raise a lot and be 'relatively' painless.

[SunsetZed]

Snozzer said:

I'd put money on them bringing untouched pension pots into IHT. I'm surprised it's outside now TBH. That could raise a lot and be 'relatively' painless.

It could do but in the long term not the short term. It would be unpopular and would likely net them very little in this parliament so I'm less sure that they will do that.

[bennno]

Snozzer said:

I'd put money on them bringing untouched pension pots into IHT. I'm surprised it's outside now TBH. That could raise a lot and be 'relatively' painless.

It would be anything but painless, I've maxed mine out whilst my wife has brought the kids up so it's effectively there as life assurance and / or to be shared between us.

If it cant be passed between a married couple without tax, then it'd make more sense to divorce, split my pension, then who knows perhaps we might get back together.

If they muck about with pensions then why defer earnings now if they will then be automatically subject to 40% IHT later......

[fat80b]

bennno said:

It would be anything but painless, I've maxed mine out whilst my wife has brought the kids up so it's effectively there as life assurance and / or to be shared between us.

If it cant be passed between a married couple without tax, then it'd make more sense to divorce, split my pension, then who knows perhaps we might get back together.

If they muck about with pensions then why defer earnings now if they will then be automatically subject to 40% IHT later......

Indeed. My pension has been my #1 priority for similar reasons.

I did read something a few years ago that explained why they are IHT free at the moment.

And it came down to it being a trust and the trustees decide who the beneficiary is.

If they want to change the rules for a pension trust, then they’d have to figure out how to handle other trusts and this would be more difficult than it sounds.

No idea whether this is right / if there is a simple workaround or not.

[REM2112]

Snozzer said:

I'd put money on them bringing untouched pension pots into IHT. I'm surprised it's outside now TBH. That could raise a lot and be 'relatively' painless.

Taxed at marginal income tax rate if the corpse is over 75, so if the recipients are higher rate tax payers, IHT would be preferable.

[mikeiow]

mikeiow said:

Good Plan Ted said:

So looks like CGT is going to change so maybe too late to sell that 2nd home or rental property, how will this effect shares will a big sell off happen to avoid the CGT uplift and maybe transfer Gold coins?

Does it?
Got a solid source for that, or is this speculation?

Another thread where the OP drops some probably nonsense in and disappears

[Panamax]

If you want some things to worry about....

Capital taxes take a long time to deliver cash to the Treasury. They have to wait for people to sell things or die. Nonetheless, and my guess at an order of events,
1. Council Tax
2. Capital Gains Tax (increased, although not all the way up to Income Tax rates)
3. Inheritance Tax (expanded to tax lifetime gifts, although possibly at a lower rate so long as you survive 7 years)

Council Tax hits everyone so can deliver a lot of cash very fast while letting the government claim "we haven't increased Income Tax or VAT".

On the other hand Council tax hits "ordinary working people" unless its graduated to hit larger properties and/or second homes.

Will they reduce taxes? No
Will they leave taxes exactly as they are? Highly unlikely
You know the rest....

[isleofthorns]

It's not like council tax doesn't go up every year anyway...
how would this work? up for everyone, or a few new super bands?

[RemarkLima]

Why doesn't anyone mention that corporation tax has gone up from 19% to 25% (with tapered relief between 50k and 250k profit)?

Introduced by the business loving Tories, and will be a massive windfall for the treasury. I doubt Labour will be dropping that back, so it's a massive hike they'll happily inherit.

[Rufus Stone]

RemarkLima said:

Why doesn't anyone mention that corporation tax has gone up from 19% to 25% (with tapered relief between 50k and 250k profit)?

Introduced by the business loving Tories, and will be a massive windfall for the treasury. I doubt Labour will be dropping that back, so it's a massive hike they'll happily inherit.

Because many appear to have the mentality that only Labour increases taxes. And they don't care about CT as they think it doesn't affect them.

[mikey_b]

isleofthorns said:

It's not like council tax doesn't go up every year anyway...
how would this work? up for everyone, or a few new super bands?

Are extra bands so unreasonable though? It does seem a bit silly that a smart-for-its-area but not especially remarkable 5-bed detached could well be paying the literally same tax as Downton Abbey.

[Panamax]

Rufus Stone said:

RemarkLima said:

Why doesn't anyone mention that corporation tax has gone up from 19% to 25% and will be a massive windfall for the treasury. I doubt Labour will be dropping that back, so it's a massive hike they'll happily inherit.

Because many don't care about CT as they think it doesn't affect them.

Well, Corporation Tax may not be as big as you think, with huge companies like Google and Amazon remarkably adept at avoiding it.

UK Treasury tax receipts break down approximately,
Income Tax, NI and CGT = 55%
VAT = 21%
Corporation Tax = 10%
with the remainder made up from various duties (fuel, booze, fags, gambling, air travel etc)

The c.25% increase in CT only adds 2.5% to Treasury tax receipts - not enough to solve runaway public spending.

[Panamax]

mikey_b said:

Are extra bands so unreasonable though? It does seem a bit silly that a smart-for-its-area but not especially remarkable 5-bed detached could well be paying the literally same tax as Downton Abbey.

You need to remember Council Tax followed the Poll Tax (Community Charge) and a big house with 2 adults and 2 kids makes no more demand on public services than a small house with 2 adults and 2 kids.

If you want "the rich to pay for the poor" you'd scrap Council Tax altogether and just hike Income Tax/CGT/IHT again.

What's truly scary in UK is broadly that each middle class family is paying for TWO complete households and the rich are paying for several. UK's major problem is the "not working" people and the "not very productive" people. Starmer says he's going to build more houses. Where's he going to find the builders? And who's going to live in those houses when they've been built? If the builders have to be brought in from Poland and the houses are occupied by people on benefits UK will just continue to spiral down the plug-hole.

They say they want to "attract investment" and "go for growth". Anyone got any ideas how they're going to achieve that? Ah yes, let's increase taxes some more - that'll really encourage everyone.