I've cut right back on my UK holdings in case the markets react a little, it's becoming clearer as to what's ahead - just how bad we will see!
I hate all these pre-budget announcements.
Friday we had the employer NI increase. Yesterday it was the bus cap increase. Today it is minimum wage increase.
No bloody point having a Budget - just announce everything to the press over a week or two.
The NI increase will cause a lot of pain I feel. No way most employers won't pass that onto the employee over time. Always felt Minimum wage set by government was a bit of a turkeys voting to cancel Christmas as it just means more money in the coffers for them predominantly.
Just pensions, IHT and CGT to come! Always save the best to last they say......
I've cut right back on my UK holdings in case the markets react a little, it's becoming clearer as to what's ahead - just how bad we will see!
I hate all these pre-budget announcements.
Friday we had the employer NI increase. Yesterday it was the bus cap increase. Today it is minimum wage increase.
No bloody point having a Budget - just announce everything to the press over a week or two.
The NI increase will cause a lot of pain I feel. No way most employers won't pass that onto the employee over time. Always felt Minimum wage set by government was a bit of a turkeys voting to cancel Christmas as it just means more money in the coffers for them predominantly.
Just pensions, IHT and CGT to come! Always save the best to last they say......
And my thoughts on those last 3.......
No major changes to pension contributions or TFC but pension fund to be included in your Estate for IHT purposes.
Other IHT changes..........changes to certain reliefs that wont impact 90% of the population, changes or abolition of the property allowance & a few other tinkerings that only affect those with sizable Estates
CGT to be aligned with your marginal rate & maybe even an INCREASE of the annual allowance as a final rabbit out of the hat.
Yep, anybody who has managed to do all right by themselves will end up getting shafted in one way or another be that alive or dead. Governments need to be going after major corporations such as google, amazon etc who swerve tax by offsetting against overseas image rights etc the sums involved would make a huge difference to the public purse. Sorry for the rant.
Yep, anybody who has managed to do all right by themselves will end up getting shafted in one way or another be that alive or dead. Governments need to be going after major corporations such as google, amazon etc who swerve tax by offsetting against overseas image rights etc the sums involved would make a huge difference to the public purse. Sorry for the rant.
I've cut right back on my UK holdings in case the markets react a little, it's becoming clearer as to what's ahead - just how bad we will see!
I hate all these pre-budget announcements.
Friday we had the employer NI increase. Yesterday it was the bus cap increase. Today it is minimum wage increase.
No bloody point having a Budget - just announce everything to the press over a week or two.
I was rather confused on one of your points here. I was reading bus as business. I assume you are literally talking bus fares from £2 to £3? An important one will also be business rate relief, which thousands of hospitality places (pubs and small restaurants) currently get but is due to expire soon (March?).
As a small business owner, I am dreading this today.
You are right to be concerned, but I have a sneaking feeling that they have painted the blackest picture possible so that the reality is somewhat less so. A sort of 'under promise, over achieve' scenario.
As a small business owner, I am dreading this today.
You are right to be concerned, but I have a sneaking feeling that they have painted the blackest picture possible so that the reality is somewhat less so. A sort of 'under promise, over achieve' scenario.
They all do this all the time. "Phew, it's shit but not as shit as I thought". Pathetic that the psychology of this approach works really.
CGT/inheritance tax changes were not as severe as I feared, but as someone said before - probably by design to make us expect the worse in the build up.
2% more for second homes has just killed any entry to BTL - sorry for anyone renting, your rents will be going up even more.
Disappointed (but not surprised) to see pension now fall into IHT - Sounds like I need to spend spend spend or leverage a lot of debt.
Or be ok with contributing to a crumbling society? Why is that so bad?
In theory, were I to die after Apr 2027 but before i've retired/collected pension my estates IHT bill has likely just gone up north of £500k, so apology for being disappointed! But as I say, not surprised and there are ways to reduce this to a degree.
The FTSE 250 and AIM like the budget. FUD worked and they were over-sold.
What's interesting is that this is a Liz Truss budget - borrow heavily to invest (although, she also spunked a lot on the energy cap). But they have the OBR in their pocket. Hunt looks like a right mug.
Can someone explain what this means/how this actually works please?
As it stood, were you to die before 75, your pension pot (i.e. SIPP, not and DB scheme) passed to your survivors tax free. Now it will simply form part of your estate and be added to the overall estate.
I.E. if you were single and had a home worth £400k and £100k in the bank your estate would not pay IHT as at the £500k limit. Now if you have to include say a £350k of pension pot on top you are now £350k over the limit and the estate would pay £140k in IHT.
Comments
Always felt Minimum wage set by government was a bit of a turkeys voting to cancel Christmas as it just means more money in the coffers for them predominantly.
Just pensions, IHT and CGT to come! Always save the best to last they say......
No major changes to pension contributions or TFC but pension fund to be included in your Estate for IHT purposes.
Other IHT changes..........changes to certain reliefs that wont impact 90% of the population, changes or abolition of the property allowance & a few other tinkerings that only affect those with sizable Estates
CGT to be aligned with your marginal rate & maybe even an INCREASE of the annual allowance as a final rabbit out of the hat.
You are right to be concerned, but I have a sneaking feeling that they have painted the blackest picture possible so that the reality is somewhat less so. A sort of 'under promise, over achieve' scenario.
Currently down 50 points (0.6%) to 8170.
Pathetic that the psychology of this approach works really.
Thought CGT was going to be worse TBH.
2% more for second homes has just killed any entry to BTL - sorry for anyone renting, your rents will be going up even more.
Disappointed (but not surprised) to see pension now fall into IHT - Sounds like I need to spend spend spend or leverage a lot of debt.
That £30 is in me pocket
What's interesting is that this is a Liz Truss budget - borrow heavily to invest (although, she also spunked a lot on the energy cap). But they have the OBR in their pocket. Hunt looks like a right mug.
Small print says the amount you can currently pay into an isa stays the same until 2030. I'm amazed.
I.E. if you were single and had a home worth £400k and £100k in the bank your estate would not pay IHT as at the £500k limit. Now if you have to include say a £350k of pension pot on top you are now £350k over the limit and the estate would pay £140k in IHT.
For higher rate taxpayers up from 20% to 24%.
FROM TODAY.
Buggers my clients who move money from Investment funds into their ISA's before the end of the tax year.
Tax free lump sum untouched
Tax relief untouched.
Lifetime & Annual allowances untouched
so you would pay IHT on £175k plus the pension pot of £350k in your example from 2027