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Budget

including Budgets
dealtn
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Re: Budget

#391164

Postby dealtn » March 1st, 2021, 2:13 pm

ursaminortaur wrote:
A quibble without a distinction since the Monetary Policy Committee is a committee of the BoE and has an inbuilt majority of BoE members.



As I said then.

Furthermore it potentially only takes a single BoE member to go against the BoE majority (as has happened on many occasions) to have a policy outcome not favoured by the BoE. Without any independents you would always have policy aligned with a majority BoE view.

Charlottesquare
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Re: Budget

#391179

Postby Charlottesquare » March 1st, 2021, 2:39 pm

Lootman wrote:
scrumpyjack wrote:the current system is grossly unfair- to tax people differently depending on what assets their wealth is held in.

Perhaps the most glaring aspect of that is the punitive way that BTL landlords are taxed currently. Not only are borrowing costs excluded from tax relief, unlike any other kind of business, but there is also a higher rate of CGT to pay upon sale, as well as a higher rate of stamp duty upon purchase.

Given the rumours that CGT may go up for sales of BTLs to one's marginal rate of income tax, it would appear that discrimination between assets will continue and may increase. Quite why the government would want to demotivate those who provide vital housing services to those who need them is beyond me.


Borrowing costs are not excluded, merely capped re relief.

Charlottesquare
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Re: Budget

#391186

Postby Charlottesquare » March 1st, 2021, 2:49 pm

scrumpyjack wrote:
Charlottesquare wrote:
dspp wrote:
The local chequebook farmers are very careful to cut one hedge per year, and raise a few lambs in order to be able to claim that they are personally engaged in farming. The other thousand acres are of course dealt with by contractors, hence the moniker "chequebook farmers". In the last ten years I have never even seen the neighboring farmer walking his own land on a single occasion. He drives a 4x4 around the perimeter maybe once a month at most.

This IHT exemption for farmers should be very severely curtailed. At the moment it is a very deliberately designed tax avoidance scheme for a particular group of voters.

regards, dspp


He might eventually just move APR within BPR and any farm would need to meet the qualification for same. I can see the logic of BPR, one does not want a family business to have to be sold each time there is a death of say the last surviving parent.

However not convinced he will actually do very much this time, I believe some of the consultations are actually still running, I do not follow them but I phoned a CTA last week who does, so maybe this one will be preparing the ground.


Well the current system is grossly unfair- to tax people differently depending on what assets their wealth is held in. In the case of family businesses, the logical solution would be for the tax man to give the option of IHT being paid by handing over a portion of the shares so that the business does not need to be sold. As for land I know people with many thousands of acres who will escape IHT. Though one of them did have a problem when his wife divorced him and wanted her share - no agricultural relief there!


There is always that additional allowance re the family home re IHT and the CGT free gain on one's PPR, is that not also unfair.

If business owners were to suffer wider IHT then very few smaller entities will ever grow to be medium sized entities and therefore fewer of them becoming larger entities or going public (which these days seems to be getting later in a company's life cycle per SMT). There is a strong business case in preserving the goose that gives the economy employment, collects unpaid all that vat, ingathers unpaid all the PAYE /NI, pays employment tax (NIER) and itself pays either IT & NI or corporation tax on its profits and whose shareholders suffer IT on their dividends.

absolutezero
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Re: Budget

#391218

Postby absolutezero » March 1st, 2021, 4:13 pm

What do we think will happen to the ISA allowance in Wednesday's budget?

Up? Raised to what?
Down? Cut to what?
Stay the same?
A cap on the value? How much?

absolutezero
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Re: Budget

#391257

Postby absolutezero » March 1st, 2021, 6:13 pm

Snorvey wrote:
absolutezero wrote:What do we think will happen to the ISA allowance in Wednesday's budget?

Up? Raised to what?
Down? Cut to what?
Stay the same?
A cap on the value? How much?


Does it matter? You're gonna find out very soon

Helpful. Thanks.

SteMiS
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Re: Budget

#391278

Postby SteMiS » March 1st, 2021, 7:42 pm

absolutezero wrote:What do we think will happen to the ISA allowance in Wednesday's budget?

Up? Raised to what?
Down? Cut to what?
Stay the same?
A cap on the value? How much?

I'd be very surprised if there is a cap on value. Personally I don't think much will happen apart from maybe simplying the plethora of different types (junior, help to buy, etc).

absolutezero
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Re: Budget

#391291

Postby absolutezero » March 1st, 2021, 8:29 pm

Snorvey wrote:
absolutezero wrote:
Snorvey wrote:
Does it matter? You're gonna find out very soon

Helpful. Thanks.


How is any answer going to be 'helpful'?

It isn't. But then again, no part of the entire thread is 'helpful'.

Does it matter? No. Does anything? Give it 100 years and we will all be dead anyway.

Is it a point for discussion? Yes. That is the point of this forum after all.

If we all took your stand point of 'you will find out soon' then there would be no discussion on the budget at all until after the event, would there?

absolutezero
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Re: Budget

#391292

Postby absolutezero » March 1st, 2021, 8:30 pm

SteMiS wrote:
absolutezero wrote:What do we think will happen to the ISA allowance in Wednesday's budget?

Up? Raised to what?
Down? Cut to what?
Stay the same?
A cap on the value? How much?

I'd be very surprised if there is a cap on value. Personally I don't think much will happen apart from maybe simplying the plethora of different types (junior, help to buy, etc).

I'm bracing myself for a cut in the allowance.
Can't have the fatcats hiding £20,000 of their cash from the taxman can we?

88V8
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Re: Budget

#391330

Postby 88V8 » March 1st, 2021, 10:52 pm

absolutezero wrote:What do we think will happen to the ISA allowance in Wednesday's budget?
Up? Raised to what?

£20,500.

V8

absolutezero
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Re: Budget

#391343

Postby absolutezero » March 2nd, 2021, 12:15 am

88V8 wrote:
absolutezero wrote:What do we think will happen to the ISA allowance in Wednesday's budget?
Up? Raised to what?

£20,500.

V8

Would be better than I expect!

1nvest
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Re: Budget

#391494

Postby 1nvest » March 2nd, 2021, 12:37 pm

absolutezero wrote:Give it 100 years and we will all be dead anyway

In this biotech revolution age who knows were we might end up. If life expectancy is expanded at 1%/year, then relative to a 80 year present life expectancy a 60 year old could live ... forever. Perhaps in 100 years we're more inclined to be more robot than organic.

Nightly downloading to backup ones 'mind/soul' and if the container/body is destroyed the next day then the most recent backup could be called upon. Slow ones clock down to 1 tick/decade and interstellar travel could seem like short hops.

EssDeeAitch
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Re: Budget

#391529

Postby EssDeeAitch » March 2nd, 2021, 1:41 pm

absolutezero wrote:
Snorvey wrote:
absolutezero wrote:Helpful. Thanks.


How is any answer going to be 'helpful'?

It isn't. But then again, no part of the entire thread is 'helpful'.

Does it matter? No. Does anything? Give it 100 years and we will all be dead anyway.

Is it a point for discussion? Yes. That is the point of this forum after all.

If we all took your stand point of 'you will find out soon' then there would be no discussion on the budget at all until after the event, would there?


Take an uptick

ursaminortaur
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Re: Budget

#391710

Postby ursaminortaur » March 2nd, 2021, 11:34 pm

The Guardian is reporting that the Chancellor will extend the Furlough scheme until the end of September and will delay tax rises until later in the year.

https://www.theguardian.com/uk-news/2021/mar/02/uk-budget-to-extend-furlough-until-end-of-september

Rishi Sunak will announce on Wednesday that the Treasury is extending its furlough scheme until the end of September in an attempt to safeguard jobs as a fragile economy emerges from the Covid-19 emergency.

In an unexpected move, the chancellor will say that workers will continue to be guaranteed 80% of their salary for a further three months after the government envisages all restrictions on activity will be removed in June.
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In addition, cash grants under the self-employment income support scheme (SEISS) will now be available to those who became self-employed during 2019-20.
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In addition to the furlough and the SEISS, Sunak is expected to announce:

An extension of the £20 a week boost to universal credit.

Extra measures to support the long-term unemployed through the Kickstart scheme for the under 25s and the Restart scheme for older workers.

An extension to the stamp duty holiday for properties under £500,000.
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The Treasury will announce a series of tax consultations on 23 March, which some have described as a ploy to allow the chancellor to announce the “good news” about extensions of support on budget day while delaying decisions on tax rises until later in the year.

SteMiS
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Re: Budget

#391850

Postby SteMiS » March 3rd, 2021, 3:15 pm

SteMiS wrote:
absolutezero wrote:What do we think will happen to the ISA allowance in Wednesday's budget?

Up? Raised to what?
Down? Cut to what?
Stay the same?
A cap on the value? How much?

I'd be very surprised if there is a cap on value. Personally I don't think much will happen apart from maybe simplying the plethora of different types (junior, help to buy, etc).

So nothing at all really

Lootman
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Re: Budget

#391858

Postby Lootman » March 3rd, 2021, 3:33 pm

SteMiS wrote:
SteMiS wrote:
absolutezero wrote:What do we think will happen to the ISA allowance in Wednesday's budget?

Up? Raised to what?
Down? Cut to what?
Stay the same?
A cap on the value? How much?

I'd be very surprised if there is a cap on value. Personally I don't think much will happen apart from maybe simplying the plethora of different types (junior, help to buy, etc).

So nothing at all really

A clever strategy really. By allowing rumours of a CGT rise to fly around, he probably got some investors to sell their holdings and pay 20% tax in this tax year, out of fear of paying more later. I thought about it myself, but then demurred. Then he barely mentions CGT at all, except to freeze the annual CGT-free allowance.

Likewise any fears of a hike in taxes on dividends, or punitive measures on IHT or ISAs, were also unfounded. The deferred increase in corporation tax is bad for future dividends, but other than that there is nothing much for investors to fear here.

Maybe Rishi is a Tory after all?

absolutezero
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Re: Budget

#391872

Postby absolutezero » March 3rd, 2021, 4:02 pm

SteMiS wrote:
SteMiS wrote:
absolutezero wrote:What do we think will happen to the ISA allowance in Wednesday's budget?

Up? Raised to what?
Down? Cut to what?
Stay the same?
A cap on the value? How much?

I'd be very surprised if there is a cap on value. Personally I don't think much will happen apart from maybe simplying the plethora of different types (junior, help to buy, etc).

So nothing at all really

Literally nothing at all.


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