Budget 2024

[Nimrod103]

In my mind, CGT is a non-transactional tax i.e. if you don't do anything you don't pay it.

The issue is that to a certain extent, in an ideal world the CGT implications shouldn't be relevant to a decision to crystallise an investment or otherwise. In that regard, it's a blocker on wealth growth as it ties up assets (in CGT avoidance) when they would generate better returns elsewhere to both the investor and likely the govt longer term.

CGT is largely a tax on the increase in asset value due to inflation, caused by the Government debauching the currency.
So the Government wins both ways. Triples all round!

[Dicky99]

When SA is done predominantly online (and the degradation of service where it isn't done on line is likely an ever increasing issue) dragging more people into it would seem perfectly reasonable to me as it likely generates more tax without really increasing reqt for increased staff at HMRC. Remove any helpdesk and make it online chat/email.

Imagine the chaos that will ensue when she'd loads of pensioners, like my 82 year old mum and all her pals, whose technical ability doesn't extend beyond sending a text, need to register with HMRC and start doing online SA

[Dicky99]

Just me conspiracy theorising, but if Hunt believes (as he has previously stated) that taxing non-doms would just drive them away and result in further econoimic depression, could he be doing this to spite/spike the impending Labour government. “There’s no money left” to become “The money’s left”.

Plant some minefields before a tactical retreat...heaven forbid.

[Nimrod103]

When SA is done predominantly online (and the degradation of service where it isn't done on line is likely an ever increasing issue) dragging more people into it would seem perfectly reasonable to me as it likely generates more tax without really increasing reqt for increased staff at HMRC. Remove any helpdesk and make it online chat/email.

Imagine the chaos that will ensue when she'd loads of pensioners, like my 82 year old mum and all her pals, whose technical ability doesn't extend beyond sending a text, need to register with HMRC and start doing online SA

ISTM that the Govt and HMRC are going in completely opposite directions with this. The Govt, by lowering thresholds for a range of different types of income, are dragging more people into having to file SA.
OTOH it is clear that HMRC is desperately trying to cut the number of people submitting SA - they asked me the week before I submitted my last return that one was not required from me in future. Why I am not sure because my income does fluctuate. I just wish they would make their mind up.

[Lootman]

OTOH it is clear that HMRC is desperately trying to cut the number of people submitting SA - they asked me the week before I submitted my last return that one was not required from me in future. Why I am not sure because my income does fluctuate. I just wish they would make their mind up.

If like me your "income" is mostly capital gains, and therefore very variable, then I can understand them taking a flexible aspect. The CGT rules make it clear when you should and should not declare those gains. And they know that such gains are mostly under your control.

I actually like doing a SA. It shows me first hand how my taxes are computed. Versus say PAYE which is voodoo science AFAIAC.

[JohnB]

Pensioners like my mum were kicked out of online SA (which I did, Mum has never used a computer) because they didn't have suitable ID. HMRC have made mistakes 3 years out of 4 with paper return.

CGT is a nasty tax because its non-transactional. You need to keep churning investments to get the allowance each year.

[Gerry557]

[I cant see IHT being scrapped as the optics wouldn't look good although it wouldn't bother me if they did scrap it. Hunt has little wiggle room than most Chancellors so Im not sure how much he can afford..

Both main parties are terrified to be seen as doing anything for rich folks so it is a non-starter.

But how about a window until the end of the tax year where any gift is immediately exempt from IHT rather than the usual 7 year wait? It would cost nothing short term and might even boost CGT receipts as folks sell off shares to gift the cash.

I like the ingenuity of that idea but I think it wouldn't give people enough notice. Could you handover a property in that timescale. Stocks and cash maybe.

I also thought the government had moved away from changing things (like NI) that needed implementing immediately as it didn't give the number crunchers the time to alter the systems.

I suppose he could introduce things that kick in next year as a hook to get your vote or to act as a Barb for the new coming gov to try and cancel. Can't make it too bad just in case of re election

It's going to be a change for Labour having an economy and financial situation to improve whilst wanting to spend. They might end up more conservative than the Conservatives

[Gerry557]

Lots of articles in the press over what will happen in the budget. I wonder what has been leaked falsely

I don't know if I should give the budget a watch. The news copters giving live shots of the car travelling down the road, pictures holding a red case. Then the we are great speech whilst leaving the detectives to find the nasty details hidden within never mentioned.

Then we get the opposition speech reply. This normally chastising everything in the leaked press as its been written beforehand and it's gets forgotten that something did the opposite of what was expected but the speech doesn't get amended in time.

Eventually we get the tables of how much better off or not we are. List of earnings against how many kids you have which never actually match anything in real life. Everyone looks at the tables thinking it should be those above me paying more. Unfortunately I'm not at the top of the table so I don't know what they think. Wot me again you ungrateful #@£&%

Should I top the car up instead just in case fuel duty does go up. But wouldn't that be inflationary? Stock up on vapes, I could sell them afterwards and make a killing, pun intended but get stung for CGT. Will that get cut further? They might get radical and make it a minus number

Whilst there will be ever more spent on the NHS and Education we might see a tad extra for defence. Even if its giving Millwall fans matching kit and bigger sticks.

Whilst I would love taxes to be cut for anyone with 557 in their name, I think nothing much will happen to excite me. Probably not going to be better off but hoping I won't be stiffed too much either.

[Gerry557]

Someone suggested cutting stamp duty on shares.

Possibly go down well for members here

https://www.cityam.com/stamping-out-tax ... o-brainer/

Does the story have merit or is just wind in your own sails

[richlist]

I'm a Conservative voter and have every expectation of being better off after today's budget. I never listen to the Labour response because I know what's going to be in it. As usual it will contain moaning, criticism and complaints. I'm looking forward to hearing the detail of Jeremy Hunts speech.

[ukmtk]

I think that Hunt is simply leaving a booby trap for Labour.
It is a scorched earth policy.
I doubt that it is to win an unwinnable election - it doesn't benefit the grey vote for a start.

[richlist]

I think that Hunt is simply leaving a booby trap for Labour.
It is a scorched earth policy.
I doubt that it is to win an unwinnable election - it doesn't benefit the grey vote for a start.

We don't know the budget details yet !
The grey voters got a 10% pension increase last April and are due another 8% this year.......so by any measure they are doing better than others.

[Nimrod103]

I think that Hunt is simply leaving a booby trap for Labour.
It is a scorched earth policy.
I doubt that it is to win an unwinnable election - it doesn't benefit the grey vote for a start.

We don't know the budget details yet !
The grey voters got a 10% pension increase last April and are due another 8% this year.......so by any measure they are doing better than others.

Can I just point out that only the state pension, which is c.£10,000/year, went up by inflation. And of course public sector pensions. Private pensions were all capped at much less, so private pensioners have all lost out in the inflation catch-up race.

[ukmtk]

I didn't even get a pay rise last year!

[Paultry]

The state pension is not ca. £10k for everyone.

Until April 2010 you needed 39/44 years NI contributions for the basic full payment. That's a lot of years.

Until April 2016 you needed only 30 years contributions for the basic full payment.

From April 2016 you require 35 years contributions for a new full state pension. There is a caveat however, if you contributed to a workplace pension fund your and employers' NI contributions were marginally decreased (14%?). This meant that the state pension was reduced proportionately in some smoke and mirrors calculation. None of this was brought to the public's attention in the years and months before the wonderful new pension for all was bandied about, what's new.

I qualified for the state pension in April 2016. I was offered £85/week based on the new state pension or I could have £112/week on the old state pension. Guess which I chose?
Paul

[Nimrod103]

The state pension is not ca. £10k for everyone.

Until April 2010 you needed 39/44 years NI contributions for the basic full payment. That's a lot of years.

Until April 2016 you needed only 30 years contributions for the basic full payment.

From April 2016 you require 35 years contributions for a new full state pension. There is a caveat however, if you contributed to a workplace pension fund your and employers' NI contributions were marginally decreased (14%?). This meant that the state pension was reduced proportionately in some smoke and mirrors calculation. None of this was brought to the public's attention in the years and months before the wonderful new pension for all was bandied about, what's new.

I qualified for the state pension in April 2016. I was offered £85/week based on the new state pension or I could have £112/week on the old state pension. Guess which I chose?
Paul

I am well aware of the intricacies and inbuilt unfairness of the state pension. I rather glossed over it by saying c.£10,000 as that is approximately equal to the single person's tax free allowance, and I suspect there is an intention to keep both of them roughly in line.

Like you my state pension is a bit higher under the old system compared to the new because I had a large S2P component, but the pension I receive is only a little more than my wife's, who has had a very broken employment history of very modest paid jobs many part time. Where is the fairness in that?

[stevensfo]

Someone suggested cutting stamp duty on shares.

Possibly go down well for members here

https://www.cityam.com/stamping-out-tax ... o-brainer/

Does the story have merit or is just wind in your own sails

I can't get excited about a 0.5% cut in share purchase. How would that help the economy? Personally, I'd rather they put the dividend allownce back to where it used to be.

As others have said, an increase in tax allowances would help most people.

Not sure about a 2% cut in NI. Isn't NI used to fund the State pension and NHS?

One thing I'm sure of is they won't be bringing VAT back down to 15% anytime soon. !


Steve

[kempiejon]

Not sure about a 2% cut in NI. Isn't NI used to fund the State pension and NHS?

I was on the HMRC website earlier today and it is stated that NI is used to fund state pension, other benefits and the NHS. Where's the pick up money going to come from or are we cutting benefits and the NHS. Or will the non-domiciled individuals be doing all the lifting, or taxing vapes like fags?

[ukmtk]

Any tax cuts will be short lived.
They will be reversed by the next government (likely Labour).

[Gerry557]

The British ISA is on. An extra £5k for British shares, whatever they are.