The Lemon Fool

Anyone else going to be watching it through your fingers?

Non-event or disaster?

BOHICA, probably. :-(

neversay wrote:Anyone else going to be watching it through your fingers? ...

As for last March, I'll probably be reading the detail when released, rather than watching.

I seem to recall one year when the spoken announcement stated that a Treasury stock was to be withdrwan from sale that day. I think it was something like Treasury Stock 1986 with a coupon of 3% . Some hours later returned from the Post Office to my desk to read the detail. They were being withdrawn from sale the following day. Something like a 70% yield to redemption over just under 5 years probably made the effort worthwhile.

I'll therefore be looking here:

https://www.gov.uk/government/topical-e ... udget-2017

and the equivalent version of this, when I can find it:

https://www.gov.uk/government/collectio ... -documents

They don't have much room to manoeuvre so I cannot see what they can do that would create massive excitement. It is also unlikely that there will be a General Election before 2022, although of course possible. I cannot remember watching this on the TV and will just be working tomorrow. I sat in a few times, but not every one. The details are always more important, but those take a bit of finding.

It is the 24 hour news cycle that builds up this sort of thing.

According to the Telegraph leader for Budget Day:

"Theresa May’s relationship with Philip Hammond is close to breaking point after Downing Street took control of a last-minute Budget briefing amid fears Wednesday's financial statement will fall flat. [...] One Cabinet source described it as “the worst Budget build-up in history”.

Mr Hammond’s prospects of staying on as Chancellor now depend on him delivering a Budget that is far beyond what most of his Conservative colleagues dare to expect." (http://www.telegraph.co.uk/news/2017/11/21/theresa-mays-relationship-philip-hammond-hits-new-low-botched/)

Either they are doing a great job of lowering expectations and surprising everyone, or planning for an imminent career change.

Look forward to more left-leaning policies (if not outright copying of Corbyn's ideas) and small businesses and self-employed getting it in the neck.

Snorvey wrote:... Aren't they due to confirm the £2k dividend allowance today as well? ...

Reconfirm but I think it was included in the second, post election, Finance Act this year (assuming the Finance Bill has been enacted).

This page https://www.gov.uk/government/publicati ... nces#fn:11 includes:

11. From April 2016, the Dividend Allowance means that individuals will not have to pay tax on the first £5,000 of dividend income they receive. From April 2018, the dividend allowance will be reduced to £2,000.

Snorvey wrote:
Well to be fair, the fake self employed should be getting it in the neck.

Any criminal or shady activity is another matter, don't they have laws against illegalities?

High VAT threshold is one of the reasons why in the UK there still are some shops except charity ones on a village high street. Small private businesses and one man bands.

(Yes, I am sure exceptions on the continent exist ie there are some countries with low thresholds and small private high street shops and one man plumbers)

As a genuine small technology business owner (VAT registered) I'm sick and tired of the overheads on entrepreneurship. A relocation to the US is a serious option and almost certainly one if Corbyn got into power (although I'm not sure I could get funds out of the UK fast enough).

Jeremy Corbyn clearly hasn't taken his medication.

PinkDalek wrote:

Snorvey wrote:... Aren't they due to confirm the £2k dividend allowance today as well? ...

Reconfirm but I think it was included in the second, post election, Finance Act this year (assuming the Finance Bill has been enacted).

This page https://www.gov.uk/government/publicati ... nces#fn:11 includes:

11. From April 2016, the Dividend Allowance means that individuals will not have to pay tax on the first £5,000 of dividend income they receive. From April 2018, the dividend allowance will be reduced to £2,000.

Don't you lose these allowances anyway if your income is over a certain amount? I forget what that is.

And non-tax payers can earn up to their full personal allowance via dividends before the £5k/£2k allowance kicks in. Yes?

Bouleversee wrote:

PinkDalek wrote:

Snorvey wrote:... Aren't they due to confirm the £2k dividend allowance today as well? ...

Reconfirm but I think it was included in the second, post election, Finance Act this year (assuming the Finance Bill has been enacted).

This page https://www.gov.uk/government/publicati ... nces#fn:11 includes:

11. From April 2016, the Dividend Allowance means that individuals will not have to pay tax on the first £5,000 of dividend income they receive. From April 2018, the dividend allowance will be reduced to £2,000.

Don't you lose these allowances anyway if your income is over a certain amount? I forget what that is.

No, not that one Boulee.

Also from the same page:

12. From April 2016, the new Personal Savings Allowance means that basic rate taxpayers will not have to pay tax on the first £1,000 of savings income they receive and higher rate taxpayers will not have tax to pay on their first £500 of savings income.

The lost allowance that I can immediately think of relates to the Income limit for personal allowance £100,000 whereby:

7. The Personal Allowance reduces where the income is above £100,000 – by £1 for every £2 of income above the £100,000 limit. This reduction applies irrespective of date of birth.

Others are listed.

What is clear is that the whole tax system needs a complete overhaul, although I doubt the political will exists to do it.

Thanks, PD. So at present it's still £500 savings interest allowance and £5000 dividend allowance but no personal allowance if total income is over £123,000; not that mine will be but one family member is over that limit, I believe.

I have yet to work out whether I will be paying higher rate tax in the current year or next, as a result of having inherited my husband's state pension. I'm sure I should be getting rid of my non-ISA shares before next year. In what order do they apply the allowances to your total income? Presumably it would have to be personal allowance against your total income and then the appropriate level of interest allowance and the dividend allowance.

Is the additional state pension (SERPS) going up as well as the basic pension? If so, by how much? I don't recall it being mentioned.

Bouleversee wrote:Thanks, PD. So at present it's still £500 savings interest allowance and £5000 dividend allowance but no personal allowance if total income is over £123,000; not that mine will be but one family member is over that limit, I believe.

I have yet to work out whether I will be paying higher rate tax in the current year or next, as a result of having inherited my husband's state pension. I'm sure I should be getting rid of my non-ISA shares before next year. In what order do they apply the allowances to your total income? Presumably it would have to be personal allowance against your total income and then the appropriate level of interest allowance and the dividend allowance.

I believe you can choose what income the PA applies against, though to date have not had to do this re any clients.

I think the dividend allowance drops to £2,000 re 2018/2019 per Finance Act (2) 2017, assent on 16/11/17, all the stuff that got lost in wash up when they stupidly called an election, see clause 8 re dividend allowance.

http://www.legislation.gov.uk/ukpga/201 ... d/data.htm

Charlottesquare wrote:I think the dividend allowance drops to £2,000 re 2018/2019 per Finance Act (2) 2017, assent on 16/11/17, all the stuff that got lost in wash up when they stupidly called an election, see clause 8 re dividend allowance.

http://www.legislation.gov.uk/ukpga/201 ... d/data.htm

There still seems to be a lot of confusion over this.
I just listend to the Investors Chronicle personal finance podcast and they said it remains at £5,000.
How and where will clarity come?

torata

torata wrote:

Charlottesquare wrote:I think the dividend allowance drops to £2,000 re 2018/2019 per Finance Act (2) 2017, assent on 16/11/17, all the stuff that got lost in wash up when they stupidly called an election, see clause 8 re dividend allowance.

http://www.legislation.gov.uk/ukpga/201 ... d/data.htm

There still seems to be a lot of confusion over this.
I just listend to the Investors Chronicle personal finance podcast and they said it remains at £5,000.
How and where will clarity come?

torata

I haven't heard the podcast but the dividend allowance remains at £5,000 for 2017/18.

However, using Charlottesquare's useful confirmatory link, you should get to section 8 of the Finance (No. 2) Act 2017 here http://www.legislation.gov.uk/ukpga/201 ... /8/enacted. This shows:

8 Dividend nil rate for tax year 2018-19 etc

(1) In section 13A of ITA 2007 (income charged at the dividend nil rate), for “£5000”, in each place, substitute “£2000”.
(2) The amendments made by this section have effect for the tax year 2018-19 and subsequent tax years.

In other words, currently £5,000 but reducing to £2,000 wef 6 April 2018.