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jonathan rowe
Posted: 10 September 2024 17:38:39(UTC)
#150

Joined: 30/03/2018(UTC)
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Robert D;317836 wrote:
Lower rate CGT and higher rate pension tax relief are tax bungs for the well-off - they cannot be justified in a fair society. Some of the non-doms will leave but they are only here using the UK as a tax-avoidance vehicle. Good riddance to them all.



CGT used to be higher, but there was tapering and indexation relief .. removing these reliefs with the tradeoff of lowering the rate simplified the tax system and improved compliance

Bumping up CGT to income tax rates without indexation relief would be economic suicide. You'd end up with folks being taxed more than the inflated price of the asset!

e.g. Buy asset for £10K, asset has only appreciated by inflation, sell after 10 years for £1340, get taxed 40% of £340

Robert - sorry that this doesn't fit in with your simplistic world view
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William P
Posted: 11 September 2024 07:21:17(UTC)
#185

Joined: 18/09/2018(UTC)
Posts: 295
To save me reading 18 pages of this thread, can someone please provide an executive summary on the most likely changes to taxation that will be made by the government in the next budget or post a link to a credible source for this? Many thanks. WP
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SF100
Posted: 11 September 2024 12:32:04(UTC)
#190

Joined: 08/02/2020(UTC)
Posts: 2,259
just a thought - presume if it was that simple or obvious, there wouldn't be 18 pages of discussion
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Stephen B.
Posted: 11 September 2024 12:59:06(UTC)
#186

Joined: 26/09/2012(UTC)
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William P;318674 wrote:
To save me reading 18 pages of this thread, can someone please provide an executive summary on the most likely changes to taxation that will be made by the government in the next budget or post a link to a credible source for this? Many thanks. WP


My take on the most likely: pension tax relief to be a flat rate of 30%, capital gains tax rates aligned with income tax but with some kind of indexation (the devil will be in the detail). Neither are likely to change until the next financial year and possibly the one after that given that they'll probably need to consult on details and allow time for implementation. I'd also expect the income tax thresholds to stay constant in pounds for several years, so ongoing fiscal drag.

Inheritance tax is also likely to be in the mix but that's a bigger can of worms so will take longer - really they should do something about lifetime gifts but that would need a big shakeup.

Wildcard - the fuel duty escalator comes back to encourage the switch to EVs.
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William P on 11/09/2024(UTC)
SSJ
Posted: 11 September 2024 13:03:32(UTC)
#189

Joined: 13/09/2010(UTC)
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William P;318674 wrote:
...please provide an executive summary on the most likely changes to taxation...

Increases.

Short enough? :)
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SF100 on 11/09/2024(UTC)
William P
Posted: 11 September 2024 21:27:35(UTC)
#191

Joined: 18/09/2018(UTC)
Posts: 295
SF100;318710 wrote:
just a thought - presume if it was that simple or obvious, there wouldn't be 18 pages of discussion


I hear you, but you will know these threads get off topic and expand to 18 pages+, hence the request for a summary. I like this forum and it has been very helpful to me at times, but I am not retired and so don't have the spare time to spend reading endlessly on these forums. No harm in asking I thought.
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jonathan rowe
Posted: 12 September 2024 10:16:52(UTC)
#187

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Stephen B.;318712 wrote:
William P;318674 wrote:
To save me reading 18 pages of this thread, can someone please provide an executive summary on the most likely changes to taxation that will be made by the government in the next budget or post a link to a credible source for this? Many thanks. WP


My take on the most likely: pension tax relief to be a flat rate of 30%, capital gains tax rates aligned with income tax but with some kind of indexation (the devil will be in the detail). Neither are likely to change until the next financial year and possibly the one after that given that they'll probably need to consult on details and allow time for implementation. I'd also expect the income tax thresholds to stay constant in pounds for several years, so ongoing fiscal drag.

Inheritance tax is also likely to be in the mix but that's a bigger can of worms so will take longer - really they should do something about lifetime gifts but that would need a big shakeup.

Wildcard - the fuel duty escalator comes back to encourage the switch to EVs.


Flat rate tax relief will be admin nightmare, especially for defined benefit schemes (ie. public sector)

You may have senior NHS staff cutting hours again, although not to the same extent as pre lifetime limit increase.

Perhaps expect a serious fudge in rules to benefit DB and stiff DC ... nothing is beyond labour
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Max Bezm
Posted: 29 January 2025 11:34:19(UTC)
#188

Joined: 18/03/2023(UTC)
Posts: 56
Stephen B.;318712 wrote:
William P;318674 wrote:
To save me reading 18 pages of this thread, can someone please provide an executive summary on the most likely changes to taxation that will be made by the government in the next budget or post a link to a credible source for this? Many thanks. WP


My take on the most likely: pension tax relief to be a flat rate of 30%, capital gains tax rates aligned with income tax but with some kind of indexation (the devil will be in the detail). Neither are likely to change until the next financial year and possibly the one after that given that they'll probably need to consult on details and allow time for implementation. I'd also expect the income tax thresholds to stay constant in pounds for several years, so ongoing fiscal drag.

Inheritance tax is also likely to be in the mix but that's a bigger can of worms so will take longer - really they should do something about lifetime gifts but that would need a big shakeup.

Wildcard - the fuel duty escalator comes back to encourage the switch to EVs.

I’m also with you on the idea of income tax thresholds staying constant for a while — fiscal drag seems almost inevitable at this point.

Inheritance tax could definitely use a shake-up, but I can’t see any quick changes there given how tricky it is.
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