Protecting your finances now Labour are in charge

M0nica

Grannygravy look at it from the other end of the telescope. You live in a country with roads and motorways with bridges and flyovers traffic lights and police controls, we have a well paid police force that, by most international standards are honest, fair and work hard. When ill we have hospitals that treat you for free, we have schools to educate our children and armed forces who are there to defend us, either in and around our own country or by taking on peace keeping duties elsewhere.

None of it is perfect but by all internaational standards we live in a peaceful, free country, able to travel around safely and get help when we need it.

All this needs to be paid for. I, for one, intend to do absolutely nothing to protect my assets earned or unearned, however you define it, because I at one time or another in my life I havwe benefitted from all the services provided by government and I am more than willing to pay my share.

If you are going to do everything you can to avoid paying tax, which public service are you prepared to stop using as you are not making a proper contribution?

MOnica, I worked for the whole of my adult life and have paid a lot of tax. I continue to pay a lot of tax. Why on earth should I pay even more? I must have subsided one hell of a lot of people by now. Enough is enough.

Merion

^Some people buy, do up and then sell their house on a regular basis and, unless they are deemed to be carrying on a trade, the gain would be tax free.^

That is not legally the case.

S222 CGTA 1992 Relief on disposal of private residence

(1) This section applies to a gain accruing to an individual so far as attributable to the disposal of, or of an interest in—

(a) a dwelling-house or part of a dwelling-house which is, or has at any time in his period of ownership been, his only or main residence …

S223 CGTA 1992

(1) No part of a gain to which section 222 applies shall be a chargeable gain if the dwelling-house or part of a dwelling-house has been the individual’s only or main residence throughout the period of ownership, or throughout the period of ownership except for all or any part of the last 36 months of that period.

But there is also ...

S224 CGTA 1992

(3)Section 223 shall not apply in relation to a gain if the acquisition of, or of the interest in, the dwelling-house or the part of a dwelling-house was made wholly or partly for the purpose of realising a gain from the disposal of it, and shall not apply in relation to a gain so far as attributable to any expenditure which was incurred after the beginning of the period of ownership and was incurred wholly or partly for the purpose of realising a gain from the disposal.

That’s the legislation which should catch those people you describe but in my experience it is rare for HMRC to pursue them - but they could.

I have experience of HMRC investigating someone who made a significant part of their living by buying, refurbishing (to the extent of rebuilding) and selling homes at a considerable profit.. Not a client I hasten to add. They were found to be trading and assessed for income tax accordingly, on top of their income from the day job. Income tax was considerably more painful than CGT.

JaneJudge

The average UK house price is 282,000. I imagine average people most probably think 5 million is a massive amount of money. I'm just hazarding a guess here

You cannot get a one bedroom flat for that here.

The average UK house price is 282,000. I imagine average people most probably think 5 million is a massive amount of money. I'm just hazarding a guess here

M0nica I am still earning a salary on top of my state pension.

I have paid all of my taxes all my life and still do.

I have never avoided taxes, apart from investing in ISA’s

I am just against paying taxes on the family home if/when it is sold, and I am totally opposed to IHT below £5 million.

Some people buy, do up and then sell their house on a regular basis and, unless they are deemed to be carrying on a trade, the gain would be tax free.

That is not legally the case.

S222 CGTA 1992 Relief on disposal of private residence

(1) This section applies to a gain accruing to an individual so far as attributable to the disposal of, or of an interest in—

(a) a dwelling-house or part of a dwelling-house which is, or has at any time in his period of ownership been, his only or main residence …

S223 CGTA 1992

(1) No part of a gain to which section 222 applies shall be a chargeable gain if the dwelling-house or part of a dwelling-house has been the individual’s only or main residence throughout the period of ownership, or throughout the period of ownership except for all or any part of the last 36 months of that period.

But there is also ...

S224 CGTA 1992

(3)Section 223 shall not apply in relation to a gain if the acquisition of, or of the interest in, the dwelling-house or the part of a dwelling-house was made wholly or partly for the purpose of realising a gain from the disposal of it, and shall not apply in relation to a gain so far as attributable to any expenditure which was incurred after the beginning of the period of ownership and was incurred wholly or partly for the purpose of realising a gain from the disposal.

That’s the legislation which should catch those people you describe but in my experience it is rare for HMRC to pursue them - but they could.

Bravo M0nica. My view, also.

I would happily pay more tax if it improved nhs etc BUT I dont have enough income to pay any tax.

Well said monica

Btw I am hoping that your party will feel able to work with the government where it agrees.

I agreed with much of their manifesto.

Grannygravy look at it from the other end of the telescope. You live in a country with roads and motorways with bridges and flyovers traffic lights and police controls, we have a well paid police force that, by most international standards are honest, fair and work hard. When ill we have hospitals that treat you for free, we have schools to educate our children and armed forces who are there to defend us, either in and around our own country or by taking on peace keeping duties elsewhere.

None of it is perfect but by all internaational standards we live in a peaceful, free country, able to travel around safely and get help when we need it.

All this needs to be paid for. I, for one, intend to do absolutely nothing to protect my assets earned or unearned, however you define it, because I at one time or another in my life I havwe benefitted from all the services provided by government and I am more than willing to pay my share.

If you are going to do everything you can to avoid paying tax, which public service are you prepared to stop using as you are not making a proper contribution?

GrannyGravy13

Dinahmo who on earth keeps a note of what gifts they have given for Christmas, Birthdays, Graduations, Christenings etc. ?

If you are giving away £3000 pa you should keep a record.

GrannyGravy13

Dinahmo who on earth keeps a note of what gifts they have given for Christmas, Birthdays, Graduations, Christenings etc. ?

You would be sensible to do so if the amounts were relatively large, and particularly on a regular basis, which many do.

GrannyGravy13

I think it is entirely natural to want to protect one’s savings and assets purchased with income which you have already paid tax on.

If you have worked and put money aside to fulfil your needs in retirement, why should it be taken away (taxed once more).

But the asset value (if your home) has increased at a greater rate than most people's income. You may have renovated or redecorated but that's part of general wear and tear and is usually the homeowners' choice.

Some people buy, do up and then sell their house on a regular basis and, unless they are deemed to be carrying on a trade, the gain would be tax free.

Dinahmo who on earth keeps a note of what gifts they have given for Christmas, Birthdays, Graduations, Christenings etc. ?

I think it is entirely natural to want to protect one’s savings and assets purchased with income which you have already paid tax on.

If you have worked and put money aside to fulfil your needs in retirement, why should it be taken away (taxed once more).

How many of you know about gives out of income? I suspect many of you don't and also that many of you could afford to.

Here's the relevant info from the HMRC website

"You can make regular payments to another person, for example to help with their living costs. There’s no limit to how much you can give tax free, as long as:

you can afford the payments after meeting your usual living costs
you pay from your regular monthly income

These are known as ‘normal expenditure out of income’. They can include:

paying rent for your child
paying into a savings account for a child under 18
giving financial support to an elderly relative

If you’re giving gifts to the same person, you can combine ‘normal expenditure out of income’ with any other allowance, except for the small gift allowance.

For example, you can give your child a regular payment of £60 a month (a total of £720 a year) as well as using your annual exemption of £3,000 in the same tax year."

There's also the small gift allowance of £250 to as many people as you wish as long as they have not already received a gift using another allowance.

Whatever you give you must keep records, even to the extent of writing a letter to the beneficiary.

Germanshepherdsmum

I wasn’t asleep and I doubt Primrose was. I have previously mentioned (to some derision) that we have taken advice and acted accordingly. It sounds as though Primrose has, too.

Thank you Germanshepherdsmum

A lot of fear mongering by the Tories who raised taxes considerably over 14 years. I'm not bothered at all and I believe higher taxes may well be needed to pay for better public services which have been run down by the Tories. If Labour can kick start economic growth that will help move us up from the low base inherited from the Tories. But it's going to take time given the mess we are in.

I’d think ideally the heating allowance would only have been paid to those of state pension age unless recipients were in receipt of other benefits. Not sure if it would be worth the cost of changing it, though, as it would only save peanuts.

J52

I doubt if the current government will give £320 million to a country for nothing, like the Tories gave the Rwandans.
Or the £500 million given to France to curb small boat crossings. That worked!
Just think how that money could have been spent.

👏👏👏

(I'm as grateful as you are, btw!)

Curtaintwitcher

I don't have any money to worry about. I'm so grateful that our social system enabled me to leave an abusive husband and make a new life for myself. I'm thankful for everything I have.
I think the heating allowance should be means -tested, as not everyone needs it. I don't know how much it would save but 'every little helps'.

I suspect that the bureaucracy of assessment of this relatively small amount might outweigh the gain? Every single pensioner assessed?

Well said Bravo that’s more like it a Tory with a social conscience not many around (on here anyway)

I don't have any money to worry about. I'm so grateful that our social system enabled me to leave an abusive husband and make a new life for myself. I'm thankful for everything I have.
I think the heating allowance should be means -tested, as not everyone needs it. I don't know how much it would save but 'every little helps'.

Merion

Callistemon213

I think they might be fictional, Merion, a figment of imagination of the DT, surely?
No-one, particularly business people, can be that dumb?

Or can they? 🤔

He's real. He's on LinkedIn. I posted the link to his profile. here it is again:

www.linkedin.com/in/ianmcdonaldwood/?originalSubdomain=uk

He says:

On a personal note, I am married with two adult sons of whom I am very proud and five golden retrievers ... which ties to what it says in the article.

He published a book in 2000 titled The Bucks $tart Here about digital entrepreneurship.

Good grief!

He's being disingenuous then.