Protecting your finances now Labour are in charge

Blimey Primrose! Just the one house to cope with. It appears that a few of you Tory supporters have your knickers in a huge knot. Doesn’t the word ‘compassion’ mean anything to you?

The Tories has already announced in the Spring Budget 2024 that they intended to end the capital gains tax breaks for people with furnished holiday lets. See what I wrote here about it:

www.gransnet.com/forums/legal_and_money/1337572-Capital-gains-tax?pg=2

However, it was not included in the Finance Bill which received Royal Assent on 24 May 2024 - arguably because the Party knew it would be a voter loser. But it would have been a Tory tax rise just as the fiscal drag that the the Tories started by freezing tax allowances is a Tory tax rise.

Note too in my previous post that the Tories have been reducing the the annual exemption on capital gains tax more than halving it to £6,000 for 2023/24 and halving it again to £3,000 for 2024/25. That was a Tory tax rise so that people selling (say) second homes will pay more tax.

I make no apolgies for adding bold to the words Tory tax rise. All this talk of needing to ring-fence against Labour is speculative scaremongering so please stop it.

The new government had maintained the fiscal rules set my the previous government.

Its spending plans are fully-costed, paid for by removing tax breaks for non-doms and private schools and putting an end to the beneficial tax rates that venture capitalists receive on carried interest. The latter isn’t even a legal loophole. It was never leglisaltion. It was a deal that venture capitalists did with HMRC in 1987 when Thatcher was in power. It had them boasting at the time that they paid a lower rate of tax than their cleaners. The fourth tax change will see an increase of 1% in stamp duty on purchases of residential property by non-UK residents.

One of the policies being funded by removing tax breaks for non-doms is to invest in more resources for HMRC. We won’t see a return on that until the staff necessary to pursue avoidance are recruited and trained. That can take up to four years for senior staff doing complex work (e.g. going after former Tory Chancellor Nadhim Zahawi for hiding capital gains offshore to avoid 3.7 million in tax) but it’s a step in the right direction.

We had a recent discussion here about the annual tax gap which is around 40 billion or 5% of expected revenue, most of it relating to tax that small businesses evade and illicit trade in tobacco and alcohol. We need more resources to identify evaders, assess and collect tax. Reeves in addressing that.

I really do need to get another past time.

Apologies for small typos in above but the meaning should be clear.

Oh and there are nearly 700,000 homes in England that are unfurnished and standing empty. Over 261,000 of these are classed as ‘long-term empty’. When we add in holiday short-lets and second homes, total vacancy sits at over 1 million homes, meaning that across England, 1 in every 25 homes is empty.

These are government numbers and a cause for shame when so many people struggle to find a home.

www.actiononemptyhomes.org/

Ladyleftfieldlover

Blimey Primrose! Just the one house to cope with. It appears that a few of you Tory supporters have your knickers in a huge knot. Doesn’t the word ‘compassion’ mean anything to you?

Hear,hear.
There is no magic money tree and if we want a National Health Service, social care for the elderly (like us!) or the disadvantaged , good schools, roads without potholes , enough affordable homes for all - the money has to come from somewhere.
I would rather pay higher taxes for an efficient NHS than have to raid the piggy bank for a hip or knee replacement .
However I may have to let Brabinger go along with the second Bentley and shop at Waitrose instead of Fortnums, but we must all be prepared to make sacrifices.

Oh no RosiesMaw Fortnum’s salted caramel shortbread biscuits are particularly delicious 🍪

kircubbin2000

There was talk of taxing your pension. I would not like that.

My pension and many thousands of others already have their pensions taxed. Nothing new there.

Ladyleftfieldlover

Blimey Primrose! Just the one house to cope with. It appears that a few of you Tory supporters have your knickers in a huge knot. Doesn’t the word ‘compassion’ mean anything to you?

The second home we let to locals for 13 years then holiday lets for 3 years. We worked very, very hard to buy both our properties, never claimed any benefits and never got any handouts. I am very proud of that. As we were self employed the income from that house is our pension.

It makes me laugh when you go on about compassion. You know nothing about me and what I have done or do now for others. Nothing at all.

Labour don’t want anybody to do well apart from their supporters like Vordemann, Geldof and various luvvie actors who are a million times wealthier than people like me.

That’s pretty rich considering that from April 2025 the Tories brought in double council tax on second homes!

Casdon

Haven’t you already done it Primrose53?

Yes Casdon but taking further steps now. 😉

I also am paying tax on my pension, like many many other pensioners!!

Merion

Oh and there are nearly 700,000 homes in England that are unfurnished and standing empty. Over 261,000 of these are classed as ‘long-term empty’. When we add in holiday short-lets and second homes, total vacancy sits at over 1 million homes, meaning that across England, 1 in every 25 homes is empty.

These are government numbers and a cause for shame when so many people struggle to find a home.

www.actiononemptyhomes.org/

👏👏👏👏👏👏

Merion thanks, once again, for your well-informed posts.

The number of houses standing empty in this country is shameful. Until every person has a decent roof over their heads, no-one should be able to own more than one house!

Almost 1000 lovely apartments built for the Commonwealth Games standing empty here in Birmingham.

I sincerely hope that 40 billion revenue gap will be tackled, and if that means employing more HMRC staff, so be it.

I wouldn’t mind betting that a good many landlords fail to declare their rental income, or under-declare it. If there is no mortgage on the property - and a good many LLs are mortgage free - then unless your local council requires you to register (many don’t) there is literally nobody you legally need to tell that you are letting a property. The SA form asks only how many properties - it doesn’t ask for addresses.

I have heard anecdotally of people who have never declared their rental income, including via a dd, a married couple - both doctors - who told DD’s friend that she was mad to be declaring hers - ‘We never have!’

Wow Katie that’s dreadful

Witzend let’s hope the Labour government puts a stop to that!

Of course, when they do, it will be viewed, in some quarters, as ‘punishing the poor landlords’.

Tough - pay your tax like everyone else!

It is. They weren't finished in time for the games (typical) and have stood empty since completion. I don't quite know what has happened as they were up for sale, some designated as affordable housing. There now appears to be some sort of wrangling going on. It's an awful shame.

LizzieDrip

Wow Katie that’s dreadful

I agree, truly shocking!

Cossy

Merion

Oh and there are nearly 700,000 homes in England that are unfurnished and standing empty. Over 261,000 of these are classed as ‘long-term empty’. When we add in holiday short-lets and second homes, total vacancy sits at over 1 million homes, meaning that across England, 1 in every 25 homes is empty.

These are government numbers and a cause for shame when so many people struggle to find a home.

www.actiononemptyhomes.org/

👏👏👏👏👏👏

What is distortion of the facts. Nearly 700,009 homes are empty and unfurnished. How many belong to people who have gone into care, or have died, which have not yet been sold?

Then holiday lets and second homes, both of which provide accommodation during the year and are not empty, are added.
Anyone here enjoy using a second home at weekends and holidays? Those homes are not standing empty. Anyone here enjoy hiring a holiday cottage in the UK rather than travelling abroad? It’s likely to be fully booked for most of the year.

Unfortunately many are taken in by twisted facts’. Dig deeper and the real facts are very different.

LizzieDrip

Merion thanks, once again, for your well-informed posts.

The number of houses standing empty in this country is shameful. Until every person has a decent roof over their heads, no-one should be able to own more than one house!

Consider my post above. People are so easily led.

Cossy

I also am paying tax on my pension, like many many other pensioners!!

Me too. I am on the new state pension and also get a small amount taken from this because of my occ pen.
I can't complain, I am mortgage free, drive a corsa which I bought from new many years ago, which is relatively cheap to run, I have enough to live a relatively financial ok lifestyle so long as something big does not come along.
I want my waspi compensation for waiting for six years for my pension, I dought I will get this under labour. I have some compassion for younger people and will help my adult son and daughter plus Grandchildren if I can, but I am also looking out for myself.

RosiesMaw

To be fair, while there are so many families being rehoused in B & Bs, damp and mould ridden Housing Authority flats, whole families often in one or at most two rooms with shared toilets and kitchens, or even containers I shan’t shed too many tears for second home owners or holiday let’s in rural,or seaside areas where 50% of the housing is AirNbB and locals are priced out of the market
As for “rings of steel” , my sock under the bed will stay where it is.
I don’t think those of us on pensions especially where we own our own homes are necessarily particularly at risk.
If spending on homelessness, the NHS, schools, social housing and social care take precedence over investment in property or tax evasion schemes I’ll be the first to give three hearty cheers

Well said RosiesMaw. Totally agree with you.

Consider my post above. People are so easily led

GSM I have considered your post above. On balance, I find Merion’s factual post far more convincing than your string of hypothetical questions.

Just because I disagree with you does not mean I am ‘easily led’.