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Post by northwestman on Nov 17, 2023 15:12:30 GMT 1
www.theguardian.com/politics/2023/nov/17/jeremy-hunt-weighing-up-inheritance-tax-cut-autumn-statementHunt is weighing up big cuts to the tax people pay after inheriting wealth, paid for in part by better than expected government spending forecasts and by raising benefits by less than expected. Hunt is also considering raising extra revenue by putting benefits up by 4.6% to keep up with October’s inflation figures, rather than 6.7%, which would be in line with September’s figures. This change could save ministers £2bn but would hit an estimated 9m households and cost single mothers an estimated £218 a year. The Institute for Fiscal Studies has said abolishing inheritance tax would cost an estimated £7bn a year, half of the benefit of which would be enjoyed by people inheriting estates worth £2.1m or more. What more need be said?
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Post by northwestman on Nov 17, 2023 15:16:03 GMT 1
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Post by northwestman on Nov 18, 2023 22:29:18 GMT 1
www.theguardian.com/money/2023/nov/18/jeremy-hunt-faces-red-wall-revolt-if-he-delivers-a-budget-for-the-richJeremy Hunt faces a backlash from “red wall” Tory MPs if he uses a fiscal windfall of up to £20bn to deliver tax cuts for the rich rather than to help ordinary families with the cost of living, the Observer has been told. The chancellor and Rishi Sunak are this weekend finalising an autumn statement on Wednesday that could include a major reduction in inheritance tax – four-fifths of which would benefit those with more than £1m at their death, according to a new report from the Institute for Fiscal Studies (IFS). Each person with more than £1m would receive an average tax cut of £180,000, the IFS states. The IFS findings show that gains from an inheritance tax cut would be concentrated on the top 5% of estates and predominantly in London and the south-east.
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Post by northwestman on Nov 18, 2023 22:40:58 GMT 1
Hunt is now thought to have between £13bn and £20bn more than anticipated, much of which has come from higher than expected tax receipts from VAT and income tax.
And most of that has come about as a result of the freezing of personal tax allowances when combined with inflation.
So potentially robbing the poor to give to the rich here. Robin Hood in reverse.
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Post by northwestman on Nov 18, 2023 23:45:09 GMT 1
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Post by northwestman on Nov 19, 2023 12:15:03 GMT 1
In April 2021, Sunak, chancellor at the time, froze the tax-free personal allowance at £12,570 – with Hunt extending that freeze until 2028. If this threshold rose with inflation, as normal, it would be worth £15,620 by 2024. By then, this ultimate stealth tax will have raised an additional £540 per worker. For someone on £20,000, that’s an 11pc rise in their annual income tax bill.
What Hunt should do is free up around seven million workers and potential workers from paying income tax by lifting the minimum threshold from £12,570 to £20,000 a year, while keeping the basic rate at 20pc. But pigs might fly!
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Post by northwestman on Nov 19, 2023 18:41:26 GMT 1
Landlord Jeremy Hunt. tompride.wordpress.com/2019/07/01/jeremy-hunt-claims-hes-an-entrepeneur-but-he-made-his-money-from-family-connections/Jeremy Hunt is a rich man. He made all of his money from the sale of a business he co-founded, called Hotcourses. This, he claims, makes him a successful entrepeneur. Hotcourses as a start-up owed its entire success to Hunt and his business partner’s ability to persuade the British Council to use its services, subsequently under a pseudonym Sheffield Data Services. This persuasion, however, was made somewhat easier no doubt by the fact that Hunt’s cousin – former Tory minister Baroness Virginia Bottomley – was vice-chair of the British Council. And also made easier by the fact that Hunt’s partner in the initial consortium that won the contract, was supposed to be the massive Yahoo. A fact that later, however, turned out to be totally untrue. |
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Post by SeanBroseley on Nov 20, 2023 0:26:02 GMT 1
That's an interesting one. I'm assuming that the ex-wife was UK non-domiciled and so would not be subject to IHT upon her death on her non-UK assets. If he had made the transfer directly in the trust himself then the trust could have been subject to IHT periodic and exit charges. Because the transfer wasn't made to a non-domiciled spouse he would have to survive 7 years after the transfer to his wife. She wouldn't have made the transfer immediately into the trust to make the transfer to her and then her transfer into the trust appear to be two discrete (rather than linked) transactions. Hilarious the marriage broke down between the two transfer happening. |
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Post by SeanBroseley on Nov 20, 2023 0:31:11 GMT 1
In April 2021, Sunak, chancellor at the time, froze the tax-free personal allowance at £12,570 – with Hunt extending that freeze until 2028. If this threshold rose with inflation, as normal, it would be worth £15,620 by 2024. By then, this ultimate stealth tax will have raised an additional £540 per worker. For someone on £20,000, that’s an 11pc rise in their annual income tax bill. What Hunt should do is free up around seven million workers and potential workers from paying income tax by lifting the minimum threshold from £12,570 to £20,000 a year, while keeping the basic rate at 20pc. But pigs might fly! I'd link the personal allowance to an amount that a person needs to live, so nearer to £30,000. |
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Post by martinshrew on Nov 20, 2023 0:46:07 GMT 1
In April 2021, Sunak, chancellor at the time, froze the tax-free personal allowance at £12,570 – with Hunt extending that freeze until 2028. If this threshold rose with inflation, as normal, it would be worth £15,620 by 2024. By then, this ultimate stealth tax will have raised an additional £540 per worker. For someone on £20,000, that’s an 11pc rise in their annual income tax bill. What Hunt should do is free up around seven million workers and potential workers from paying income tax by lifting the minimum threshold from £12,570 to £20,000 a year, while keeping the basic rate at 20pc. But pigs might fly! I'd link the personal allowance to an amount that a person needs to live, so nearer to £30,000. theconversation.com/how-much-income-is-needed-to-live-well-in-the-uk-in-2023£30,000 before anyone contributes a jot in taxes? **** me, you're economics is Liz Truss x100 on shrooms! |
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Post by SeanBroseley on Nov 20, 2023 9:59:13 GMT 1
£30,000 before anyone contributes a jot in taxes? **** me, you're economics is Liz Truss x100 on shrooms! We certainly need to raise the threshold on these things. Majority of people paying income taxes do so on earnings or self employed earnings or on deferred earnings (pension income) A tax on work - we need people to work. And we start paying tax at a level before expenses are met. Note that no company pays corporation tax before meeting expenses that are "wholly and necessary". The best tax reform the government has done is to reduce the annual capital gains tax allowance. I would abolish it and let anyone with unused income tax personal allowance to set that against taxable gains. I'd also equalise income tax rates between different income tax streams. This would still leave the issue of National Insurance. Given the erosion of benefits related to NICs people now - on balance rightly - see this as another tax. I would replace it with a land value tax. One of the most serious problems we have in this country is that land values soak up productivity gains in the rest of the economy - to its detriment. Take some of that unearned bounty and fund state pensions at a decent level. |
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Post by martinshrew on Nov 20, 2023 11:33:19 GMT 1
£30,000 before anyone contributes a jot in taxes? **** me, you're economics is Liz Truss x100 on shrooms! We certainly need to raise the threshold on these things. Majority of people paying income taxes do so on earnings or self employed earnings or on deferred earnings (pension income) A tax on work - we need people to work. And we start paying tax at a level before expenses are met. Note that no company pays corporation tax before meeting expenses that are "wholly and necessary". The best tax reform the government has done is to reduce the annual capital gains tax allowance. I would abolish it and let anyone with unused income tax personal allowance to set that against taxable gains. I'd also equalise income tax rates between different income tax streams. This would still leave the issue of National Insurance. Given the erosion of benefits related to NICs people now - on balance rightly - see this as another tax. I would replace it with a land value tax. One of the most serious problems we have in this country is that land values soak up productivity gains in the rest of the economy - to its detriment. Take some of that unearned bounty and fund state pensions at a decent level. I personally think it's the so called "middle class" that get shafted. If you're at the bottom end you get a lot of help, if you're at the top end you don't need help, and likely have plenty of "solutions" to paying less. In the middle you get **** all, and most need a little. I'd probably raise it as below though I haven't fully thought it through: 20% - £20,000+ 40% - £60,000+ 45% - £120,000+ 50% - £200,000+ |
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Post by Worthingshrew on Nov 20, 2023 13:38:03 GMT 1
Abolishing or reduced inheritance tax is not even good politics, as almost no one will benefit immediately or have more cash to spend. Only if you’re in the fortunate position to inherit money in the future will you benefit. Better to raise income tax thresholds which will benefit everyone, if only to a small degree.
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Post by northwestman on Nov 21, 2023 16:44:57 GMT 1
Possible smoke and mirrors by Hunt if he goes down the route of reducing income tax.
Let's use as an example someone who at present has to pay tax on £20,000 after being in receipt of the personal allowance of £12,570 - so he'd be paying £4,000 in tax.
Now if Hunt reduces income tax to 19p he'd be paying £200 less per annum = £3,800. If he reduces it by 2p he'd be paying £400 less per annum = £3,600.
However, if Hunt kept income tax at 20% but raised the threshold to its proper 2024 level taking into account inflation (£15,620), he'd have an extra £3,050 personal allowance, so he would only be taxed on £16,950 at 20% = £3,390. A significant difference.
Plus Hunt has frozen the personal allowance until 2028, meaning that more and more will end up paying tax, with an increasing number being dragged into the 40% tax band.
If on the other hand he reduces N.I. contributions then that's zero use to me as I retired some time ago!
Let's see what tomorrow brings.
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Post by northwestman on Nov 22, 2023 15:43:01 GMT 1
If on the other hand he reduces N.I. contributions then that's zero use to me as I retired some time ago! Yep. 2p off N.I. - down to 10%. Nothing off income tax. So predictable. It is barely 18 months since Sunak increased N.I. to 13.5%! |
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Post by Chief Inspector Swan on Nov 22, 2023 16:05:00 GMT 1
Basic State Pension uprated with a ludicrously generous inflationary measure. Sheer electioneering rather than having the stones to set more equitable policy and adjust the OAP-loving triple lock.
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Post by mattmw on Nov 22, 2023 16:47:07 GMT 1
Bit of a nothing statement really - aside from some tinkering round the edges of the economy some of the anticipated changes to inheritance tax, stamp duty and significant tax cuts
Think the key thing is the weak economic growth forecasts for the next few years 1% lower growth next year and at best hitting 2% in future years. Back in the early days of the Conservative government it was round the 3% mark and even the austerity budgets were based on 2.5% growth each year.
The economy has really slowed in recent years and will be a big problem for Labour as much as it is for the conservatives - slow growth makes investment in services and infrastructure much more difficult
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Post by Minormorris64 on Nov 22, 2023 16:51:29 GMT 1
Bit of a nothing statement really - aside from some tinkering round the edges of the economy some of the anticipated changes to inheritance tax, stamp duty and significant tax cuts Think the key thing is the weak economic growth forecasts for the next few years 1% lower growth next year and at best hitting 2% in future years. Back in the early days of the Conservative government it was round the 3% mark and even the austerity budgets were based on 2.5% growth each year. The economy has really slowed in recent years and will be a big problem for Labour as much as it is for the conservatives - slow growth makes investment in services and infrastructure much more difficult I'll bet there are a few 21/22 year olds who next April won't be thinking "bit of a nothing statement" |
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Post by northwestman on Nov 22, 2023 16:51:39 GMT 1
Basic State Pension uprated with a ludicrously generous inflationary measure. Sheer electioneering rather than having the stones to set more equitable policy and adjust the OAP-loving triple lock. You are talking about the only demographic that is significantly likely to vote Tory, so of course they'll bribe them. That said, that bribe won't work for me, although I'll cheerfully pocket the money! |
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Post by mattmw on Nov 22, 2023 17:22:12 GMT 1
Bit of a nothing statement really - aside from some tinkering round the edges of the economy some of the anticipated changes to inheritance tax, stamp duty and significant tax cuts Think the key thing is the weak economic growth forecasts for the next few years 1% lower growth next year and at best hitting 2% in future years. Back in the early days of the Conservative government it was round the 3% mark and even the austerity budgets were based on 2.5% growth each year. The economy has really slowed in recent years and will be a big problem for Labour as much as it is for the conservatives - slow growth makes investment in services and infrastructure much more difficult I'll bet there are a few 21/22 year olds who next April won't be thinking "bit of a nothing statement" Yes to be fair extending the minimum wage to that age group isn’t a bad move, although relatively cheap as only around 30% of that age group are in full time employment. Not sure if it covers apprenticeships though? The decline in growth predictions probably see a couple of billion out of tax take by the government over the next few years, and this looks like it’s seeing a real terms decline in departmental government budgets - so potentially cuts in defence, education, home office and local government budgets |
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Post by mattmw on Nov 22, 2023 17:25:28 GMT 1
Basic State Pension uprated with a ludicrously generous inflationary measure. Sheer electioneering rather than having the stones to set more equitable policy and adjust the OAP-loving triple lock. You are talking about the only demographic that is significantly likely to vote Tory, so of course they'll bribe them. That said, that bribe won't work for me, although I'll cheerfully pocket the money! Think the pension increase is no bad thing as I imagine a fair bit of that money will get recycled into the economy - rather than squirrelled into savings, so should boost the economy a bit. Possibly puts less strain on private pension too which is no bad thing The government actually being nice to a section of society is no bad thing |
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Post by SeanBroseley on Nov 22, 2023 18:29:54 GMT 1
A ludicrously generous uprating to the lowest State Pension in Europe. Making it, that's right folks, the lowest State Pension in Europe.
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gollum
Shropshire County League
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Post by gollum on Nov 22, 2023 18:32:06 GMT 1
Basic State Pension uprated with a ludicrously generous inflationary measure. Sheer electioneering rather than having the stones to set more equitable policy and adjust the OAP-loving triple lock. [b Jealousy is a dreadful thing Swanny. As someone who is retired the fact that NI contributions have been cut means bugger all to me. Likewise when those employed get additional holidays what about the retired. We can’t enjoy an extra day off cos we’re on holiday 24/7 . Grossly unfair. I have taken a break to reply to your post from writing to my useless MP as I have yet to get my Winter allowance payment . Should go toward my various Christmas meals out , of which there are many . The thought of it keeps me warm😂 |
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Post by Chief Inspector Swan on Nov 22, 2023 19:13:41 GMT 1
A ludicrously generous uprating to the lowest State Pension in Europe. Making it, that's right folks, the lowest State Pension in Europe. This is a remarkably flawed way of looking at it, that fails to take account of the contributions required of the population in each country to receive said benefit. It also fails to consider the differing tax incentives in place for private retirement provision between countries and the structures in place to engender meaningful retirement saving. All the above meaning the UK boasts a world top ten retirement system when taken in the round, but sure, let’s just consider a part of the holistic picture due to our propensity to criticise anything Conservative. |
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Post by SeanBroseley on Nov 22, 2023 19:21:48 GMT 1
Word salad. Ordinary people take on much more - i.e. all - of the investment risk of what we call private pension provision. And meaningful retirement saving is underpinned by rising real wages.
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Post by northwestman on Nov 22, 2023 19:24:43 GMT 1
Basic State Pension uprated with a ludicrously generous inflationary measure. Sheer electioneering rather than having the stones to set more equitable policy and adjust the OAP-loving triple lock. [b Jealousy is a dreadful thing Swanny. As someone who is retired the fact that NI contributions have been cut means bugger all to me. Likewise when those employed get additional holidays what about the retired. We can’t enjoy an extra day off cos we’re on holiday 24/7 . Grossly unfair. I have taken a break to reply to your post from writing to my useless MP as I have yet to get my Winter allowance payment . Should go toward my various Christmas meals out , of which there are many . The thought of it keeps me warm😂 I have hopes that my £500 Winter Fuel Allowance will be in my bank account by the end of next week, as was the case last year. |
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Post by kenwood on Nov 22, 2023 19:53:06 GMT 1
A ludicrously generous uprating to the lowest State Pension in Europe. Making it, that's right folks, the lowest State Pension in Europe. This is a remarkably flawed way of looking at it, that fails to take account of the contributions required of the population in each country to receive said benefit. It also fails to consider the differing tax incentives in place for private retirement provision between countries and the structures in place to engender meaningful retirement saving. All the above meaning the UK boasts a world top ten retirement system when taken in the round, but sure, let’s just consider a part of the holistic picture due to our propensity to criticise anything Conservative. Don’t want to state the obvious , but I will, our propensity to criticise anything Conservative may just be because they have been the party in power for how long? Im sure the Labour Party will be equally criticised when they are voted in , which couldn’t come soon enough . That’s how it works , always has , always will be . |
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Post by Chief Inspector Swan on Nov 22, 2023 19:57:49 GMT 1
This is a remarkably flawed way of looking at it, that fails to take account of the contributions required of the population in each country to receive said benefit. It also fails to consider the differing tax incentives in place for private retirement provision between countries and the structures in place to engender meaningful retirement saving. All the above meaning the UK boasts a world top ten retirement system when taken in the round, but sure, let’s just consider a part of the holistic picture due to our propensity to criticise anything Conservative. Don’t want to state the obvious , but I will, our propensity to criticise anything Conservative may just be because they have been the party in power for how long? Im sure the Labour Party will be equally criticised when they are voted in , which couldn’t come soon enough . That’s how it works , always has , always will be . You’re very welcome to criticise the Conservatives and the wider political classes for that or indeed any reason. I was simply making clear that to criticise the British pension system purely on the grounds of the £ of State pension payments is an extreme logical fallacy. I was speculating that the poster’s rabid dislike of conservatism might be causing them to commit such an error of judgement. |
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Post by kenwood on Nov 22, 2023 22:37:22 GMT 1
I get your point but again I would suggest that perhaps there are those whose focus on making any meaningful retirement savings is somewhat blurred at present .
They tend to focus on the here and now.
Many reasons why of course but mainly it’s because their level of income prohibits them from making any financial decisions which could afford them a decent private pension in the future.
In such cases a decent state retirement pension would be of some benefit .
Speaking personally I’m doing o k . A decent pension from working in local government together with the state pension means that I am well able to manage but others aren’t so fortunate .
Do I really need the Winter fuel allowance - No , in all honesty, Perhaps paying such benefits to people my age irrespective of income needs to be looked at . However, woe betide any government who would dare to suggest that the level of state pension paid individually should be calculated not on contributions made but means tested.
Now that would cause some discussion., but it would never happen .
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Deleted
Deleted Member
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Post by Deleted on Nov 22, 2023 23:34:15 GMT 1
It’s all just pre-election posturing.
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