Protecting your finances now Labour are in charge

I really do need to get another past time.

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.

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?

Yes Primrose. We have been making plans for a Labour government for some time. We are alive to likely changes in capital gains tax, dividend tax and inheritance tax including changes to the ‘seven year rule’. We may also move earlier than expected due to likely stamp duty changes. Will have to live with increased council tax, vehicle tax, fuel duty, alcohol duty etc. Glad we don’t have an EV with predicted vat on recharging costs going from 5% to 20%. Labour will be nothing short of robbers.

Floradora9

I had hoped for an increase in the limit for inheritance tax which the Conservatory government would have brought in . I think it is so unfair to tax whate you have left for your family after paying tax during your lifetime . So many houses now take you over the limit .

Why not give tranches of money to your family now? You will have the pleasure of seeing them benefit while you're still alive. If your other property assets take you over the £1 million threshold, surely that's still an amazing legacy for your children?

Floradora of course, anyone who needs care will lose their home to pay for it, such is the dire state of social care in this country. So they won’t be leaving their home to their children anyway.

Perhaps, if everyone paid a bit more tax, social care could be fixed so it wouldn’t take our homes - wow, there’s an idea!

Sorry tories!

I’m glad labours in it’ll take time to mend the mess the tries have left!

I had hoped for an increase in the limit for inheritance tax which the Conservatory government would have brought in . I think it is so unfair to tax whate you have left for your family after paying tax during your lifetime . So many houses now take you over the limit .

BlueBelle

Change the record Primrose you’re sounding very bitter
Many of us have suffered a lot under your government so I’m a happy bunny to give another a go
🥱🥱🥱

I agree! That record is getting boring!!!!!

crazyH

Casdon - I was going to ask the same question. I have given away most of mine to the children. Their needs are now while they are Stettin up mes, bringing up young children. Hopefully, I will survive 7 years and the Taxman will not be able to get his hands on it.

Yes, that’s what I’ve done too.

They can’t be worse than the Tories!!!

Talking of protecting your finances, watch out for a scam website called Save My Taxes.

This website is operating from India and Nigeria and claims to be representing WASPI, and will assist in obtaining compensation. They are also targeting anyone claiming PIP, Cost Of Living Payments,Carers Allowance, etc.

Do not touch with a bargepole.

Setting up homes

Casdon - I was going to ask the same question. I have given away most of mine to the children. Their needs are now while they are Stettin up mes, bringing up young children. Hopefully, I will survive 7 years and the Taxman will not be able to get his hands on it.

kircubbin2000

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

Pensions are already taxed on anything over the tax free threshold.

The talk of taxing pensions came about because the Tories have frozen the tax free threshold for some years not and, as the triple lock means pensions rise each year, the pension is likely to exceed the tax free threshold.

Have Labour said they're going to do any of that OP?

Why don't you just relax and see what's actually going to come about rather than wasting today inventing some imaginary bogyman coming to steal your nice new cars, holiday let, big garden and extra special holidays.

kircubbin2000

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

If your State Pension added to any private or occupational pension takes you above the point where tax is payable, yes. But the State Pension always comes first in the calculations so the cut off point would only come when the threshold is lower than the pension.

kircubbin2000

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

I think what you mean is that there is a lot of right wing media talk of pensions being taxed.

so we are ending our holiday let property and making alternative arrangements

Primrose my heart bleeds for you. How will you manage with only one property? I hope you’ll be OK!!!

What do you think they will do Primrose?

Genuinely interested, as when we last had a Labour government, DH and I had less money than we have now.

It’s been hard earned and saved for, and I intend it to enable us to enjoy the rest of our lives and hopefully have some left to assist the AC and GC.

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

Change the record Primrose you’re sounding very bitter
Many of us have suffered a lot under your government so I’m a happy bunny to give another a go
🥱🥱🥱

https://www.gransnet.com/uploads/talk/202407/medium-126680-27d0510c-5b5c-4809-bef2-c60dc7066e8d.jpeg https://www.gransnet.com/uploads/talk/202407/medium-748097-76e86b01-6d1b-4e05-965c-114e03c02a05.jpeg

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

🤣🤣🤣🤣