2024 UK politics - now with Labour in charge
Comments
-
Gain is added to the rest of your income. So if all gain keeps you in basic rate, you would have paid 10% on the gain, now will pay 18%. Any gain that sits in the higher rate tax band is taxed at the higher rate.
1 -
Income Tax thresholds - remain frozen until 2028/29.
Some weasel words around claiming that is in line with the manifesto.
0 -
There's a few changes to inheritance tax, which will doubtless please a few Class Warriors (not thinking of anyone here) and they're forecast to raise a whopping extra £2b pa by the end of this Parliament. Compare this to the £25b pa to be raised via the ENIC changes. Conclusion: raising tax revenue is easy if you simply spread the burden around (via IT would be better, but I'm not in charge) rather than focusing on pet projects relating to righting wrongs re morality etc that actually do very little to raise cash.
EDIT - There's an increase to the tax on flights, with a very significant increase to that applicable to private jets. No estimated extra revenue from the private jet element (so clearly some "virtue signalling" going on here via a fiscally irrelevant decision) but it did allow Reeves to make a joke about Rishi's flights to California.
0 -
I didn't think they would be that brutal on the threshold.
0 -
Now 5% additional stamp duty on second homes. Ouch.
0 -
The increase in the employment allowance helps
Brings the number to 2.07%
“New York has the haircuts, London has the trousers, but Belfast has the reason!0 -
Am I right in thinking that means the NI taxable income across the company will change from £36,200 to £70,000. This is then offset by the number of employees times £4,100? If so, that's very good news!
ps shame you couldn't get it under 2%, then you could have been right all along.
0 -
Freeze on fuel duty. The war on motorists must be being waged elsewhere. That combined with an extra £500 a year if you take a bus to work (in most of England) is a piss take.
0 -
Breaking news - there will be VAT on private school fees. Don't think this was discussed anywhere.
1 -
This one is a depressingly lonely fight. I still remember the glory days when Ken Livingstone almost halved bus fares.
0 -
Bus fare cap increases by 50% to £3
0 -
Capital Gains Tax increase is from today.
We need clarity by what Reeves meant by 'inherited pensions'. Inherited at what point?
Keeping the freeze on income tax allowances / thresholds is a clear increase in Income Tax on working people.
0 -
It means that pensions are counted as part of the estate for inheritance tax. Makes sense, the pension should be a source of income not an inheritance tax planning tool.
0 -
When I was right I was right, that didn't change when I was wrong
“New York has the haircuts, London has the trousers, but Belfast has the reason!0 -
Spousal exemption to apply?
It's a massive change that required more than one sentence in her speech.
0 -
IIRC, the manifesto commitment was only in respect of not increasing the relevant rates. Not that it matters as:
a) There was a court case in the Blair era that found that manifesto commitments don't have to be honoured; and
b) By the next GE, folk will have forgotten this budget if things are materially better and will have bigger things about which to put the boot in if not.
0 -
Of course that's true, just funny seeing them try to justify an increase not being an increase! And keeping a traight face.
0 -
I reckon a key requirement of a politician aspiring to high office is the ability to convince yourself that black is white. Which is probably why so few senior politicians would be trusted if they were selling you a second hand car.
1 -
Arguing over the semantics of what is only a line in a manifesto seems a bit pointless. We all knew tax rises were coming since well before July. And for them to be meaningful they *had* to come from one of the major taxes. So it was really a question of exactly how they were going to divvy it up between freezing thrrsholds, and Employers NIC.
1985 Mercian King of Mercia - work in progress (Hah! Who am I kidding?)
Pinnacle Monzonite
Part of the anti-growth coalition0 -
'Us' as in our UK group of companies. The rate hike was not as bad as it could have been but the reduction in the threshold is going to add a fair bit to the total.
"I spent most of my money on birds, booze and fast cars: the rest of it I just squandered." [George Best]0 -
assuming figures are correct...
...i'd say there's plenty of justification for turning the screws on private jet use, the emissions levels are way higher than i'd have guessed
my bike - faster than god's and twice as shiny0 -
As it just becomes part of the estate for inheritance tax, then yes, spousal exemption applies. I don't think it does need much explaining, it's just a loophole that has been closed.
0 -
TBF it could have been worse on CGT, IHT and pensions. Possibly part of the strategy was to set expectations that it would be a bit of a 'bloodbath' then people are relieved when its not as bad as expected.
Although I still need to get some input on the stuff that is no doubt lurking in the small print of the whole thing.
"I spent most of my money on birds, booze and fast cars: the rest of it I just squandered." [George Best]0 -
Sorry. I was being a bit flippant, raising the issue of where the hit will land.
0 -
But adding £500 or so to the cost of Rishi's alleged private jet flights to California won't make him ask Greta if he can borrow her solar power yacht to get there instead. He'll just pay the £500 out of loose change 'cos he's a very rich boy.
It's a measure that won't raise material revenue or change behaviour. It it pure virtue signalling, albeit of the most virtuous type.
0 -
Agreed. All that hype and then the reality is that 60% of the new tax revenue comes from tinkering with a tax that will spread its impact far, wide and not very deep, with the other 40% from various wheezes that history tells us likely won't raise as much as hoped for. Makes you wonder what she's been doing since July!
0 -
Half a billion a year off people who you say won't notice it sounds a decent deal.
0 -
i'm sure it's a factor, easy target, so it's essentially free money
the bus cap increase combined with keeping the fuel duty cut seems pretty gutless
upping duty on non-draught alcohol while cutting it on draught is playing to a dwindling segment of the population, i'd have kept things level
my bike - faster than god's and twice as shiny0 -
In my case 'us' is me and two colleagues.
1985 Mercian King of Mercia - work in progress (Hah! Who am I kidding?)
Pinnacle Monzonite
Part of the anti-growth coalition0 -
The OBR forecasts assume that the fuel duty will return to indexation from next year. Glad to see it's still all fictitious.
0
