Britain's Tax Con

What about the elderly people now living alone in a big old family house and existing on a state pension with little or no savings? There are many such people who live (if you can call it living) in Asset Britain as well as Austerity Britain, too old and frail to consider moving.

Germanshepherdsmum

What about the elderly people now living alone in a big old family house and existing on a state pension with little or no savings? There are many such people who live (if you can call it living) in Asset Britain as well as Austerity Britain, too old and frail to consider moving.

Quite correct it’s not possible to apply a wealth tax year by year, Labour have quite rightly ruled out a wealth tax in any case. In the case of private homes current exemptions are far too high, the way that businesses transfer wealth needs changing, because a great deal of wealth is held in businesses.

Not sure what you mean by ‘private homes current exemptions’ Katie. Perhaps you could clarify.

Katie59

Germanshepherdsmum

What about the elderly people now living alone in a big old family house and existing on a state pension with little or no savings? There are many such people who live (if you can call it living) in Asset Britain as well as Austerity Britain, too old and frail to consider moving.

Quite correct it’s not possible to apply a wealth tax year by year, Labour have quite rightly ruled out a wealth tax in any case. In the case of private homes current exemptions are far too high, the way that businesses transfer wealth needs changing, because a great deal of wealth is held in businesses.

We own a SME, we pay all of our business taxes long with hefty personal taxes, we employ people, these people pay their taxes and spend in the economy.

When we die we intend to hand over the business to some of our AC who will continue to employ and pay taxes.

If in your world this legacy was to be heavily taxed on our death our AC know what to do, no business, no more employment, no more taxes.

I really do not think you have any idea concerning wealth held in businesses

GrannyGravy13

If taxation doesn’t fund government spending why the constant cries to tax the rich more, tax people’s homes…

Incentivise people to work, to attain their goals, to improve their lifestyles and have money in the bank oops then the state will tax you more for being successful.

The way to incentivise work is to tax earnings from work less. Currently, there are other ways to accumulate money without having to pay so much tax.

growstuff

GrannyGravy13

If taxation doesn’t fund government spending why the constant cries to tax the rich more, tax people’s homes…

Incentivise people to work, to attain their goals, to improve their lifestyles and have money in the bank oops then the state will tax you more for being successful.

The way to incentivise work is to tax earnings from work less. Currently, there are other ways to accumulate money without having to pay so much tax.

What is wrong with accumulating money ?

ISA’s are tax free

Premium Bond winnings are tax free.

There are very few (less than 5%) of U.K. residents who are super rich punitive tax laws will punish far more than the 5%.

Germanshepherdsmum

What about the elderly people now living alone in a big old family house and existing on a state pension with little or no savings? There are many such people who live (if you can call it living) in Asset Britain as well as Austerity Britain, too old and frail to consider moving.

I'm not criticising but just asking how that is relevant?

Nothing wrong with accumulating money. However, I know of at least one individual who has accumulated a lot of money over the last 20 years without working for it, other than having a meeting with an accountant every so often. He pays a considerably lower rate of tax than people who work for it.

Germanshepherdsmum

Not sure what you mean by ‘private homes current exemptions’ Katie. Perhaps you could clarify.

Early £1m for a couple tax free is far too high

If French people sell a property which is not their principal home they have to pay a higher rate of tax on the gain of about 19 per cent. However, as I have said this doesn’t apply to your home.

Nearly

What's wrong with taxing earned and unearned income equally? It doesn't stop people securing a financially stable future GrannyGravy.

What is right about taxing unearned income at a lower rate and decreasing the chances of many to secure that financially stable future?

mokryna

If French people sell a property which is not their principal home they have to pay a higher rate of tax on the gain of about 19 per cent. However, as I have said this doesn’t apply to your home.

So they are treating anything other than the home you live in as a simple asset mokryna. That makes sense; that's what they are.

Going back to GSMs fears of the Great British Sell Off. I imagine those who are most likely to need to sell will be those with multiple mortgages. I don't really know what you would call that but it always seemed to me to be a bit like a Ponzi scheme.

DaisyAnneReturns

What's wrong with taxing earned and unearned income equally? It doesn't stop people securing a financially stable future GrannyGravy.

What is right about taxing unearned income at a lower rate and decreasing the chances of many to secure that financially stable future?

Unearned income is taxed the same as earned income (20% 40% and 45%) depending on the amount from investments, bank interest and rentals.

It is not liable for NI but then again neither are pensioners.

All dividends over £1,000 are taxed anything from 8.75%, 33.75% and 39.75%.

The only folks getting away with lessening their tax liability have got a creative accountant close at hand and their fees pretty much negate any savings unless of course you are in the top 5% super rich

Katie59

Germanshepherdsmum

Not sure what you mean by ‘private homes current exemptions’ Katie. Perhaps you could clarify.

Early £1m for a couple tax free is far too high

Thanks for clarifying that you were referring to IHT. This will seem a huge amount in some parts of the country, far from it in others.

Taxation of dividends is lower than normal income tax rate, GG13. Or the government web site has got it wrong. Plus a tax free allowance of £1,000 over and above personal allowance..

www.gov.uk/tax-on-dividends

MaizieD

Taxation of dividends is lower than normal income tax rate, GG13. Or the government web site has got it wrong. Plus a tax free allowance of £1,000 over and above personal allowance..

www.gov.uk/tax-on-dividends

Yes it starts at 8.75% for those on basic rate tax and increases to 33.75% for those on higher rate tax and then 39.75% for the highest rate.

These rates have increased under the Conservatives and the amount of dividends allowed tax free has decreased under the Conservatives.

The tax man is hot on the tail of dividend wheezes

DaisyAnneReturns

Did anyone bother to read or watch be foe coming up with their closed mind view? My apologies as I know some did, but old age atrophy seems to have shut any new thinking or the opening of their mknds for others.

You lost me at the ageism, I'm afraid.

I am so sick of that that I'm basically not engaging with it and pointing it out wherever I see it. Ageism seems to be the last 'ism' that is allowed to pass without comment. It's bad enough on FB or places like Mumsnet, but there is no excuse for it on here.

Doodledog

DaisyAnneReturns

Did anyone bother to read or watch be foe coming up with their closed mind view? My apologies as I know some did, but old age atrophy seems to have shut any new thinking or the opening of their mknds for others.

You lost me at the ageism, I'm afraid.

I am so sick of that that I'm basically not engaging with it and pointing it out wherever I see it. Ageism seems to be the last 'ism' that is allowed to pass without comment. It's bad enough on FB or places like Mumsnet, but there is no excuse for it on here.

What Doodledo posted 👏👏👏

Disgraceful post DAR.

GrannyGravy13

MaizieD

Taxation of dividends is lower than normal income tax rate, GG13. Or the government web site has got it wrong. Plus a tax free allowance of £1,000 over and above personal allowance..

www.gov.uk/tax-on-dividends

Yes it starts at 8.75% for those on basic rate tax and increases to 33.75% for those on higher rate tax and then 39.75% for the highest rate.

These rates have increased under the Conservatives and the amount of dividends allowed tax free has decreased under the Conservatives.

The tax man is hot on the tail of dividend wheezes

Apologies, GG13. I hadn't read your post properly. You did, of course, mention the lower tax rate for dividends.

I fixated on 'investments' in your first paragraph and translated it ass 'dividends.

DaisyAnneReturns

If you are going to tell us what "Sir Starmer" as you choose to call him, commented, could we please have a quote GrannyGravy? Making it up is very unhelpful.

At the heart of this article it says, By raising taxes on wealth, Labour could, crucially, cut taxes on income. It is more about a redistribution of tax, a possible lowering of income tax.

This is the point being made.

^One part of the country has lived through an asset boom. The other is living on wages that have not risen in real terms for 15 years, since before the 2008 financial crash. For those with assets, the crash is a distant memory. London house prices have risen inexorably since 2010, by 31 per cent after inflation. The FTSE 100 is 58 per cent higher after dividends. Real average weekly pay is, meanwhile, no higher today than in July 2006. Those who live in Asset Britain have no idea what Austerity Britain is like.^

Perhaps encouraging all those unemployed, and living on tax payer benefits, to get out to work, would also increase payments into the exchequer. Instead of taxing people , again and again.who have brought assets with their wages

I cannot understand the logic of National Insurance contributions.

NI is after all , just another form of income tax.

BUT those who earn less than £242 per week (£12,584 per year) pay nothing. Those who earn between ££242 and £967 per week (£12,584 pa and £50, 284 pa) pay 12% and above the income of £50,284 pa you pay ONLY 2%!

WHY!

Should the higher earners not pay a higher, not lower percentage of their excess earnings?

www.gov.uk/national-insurance/how-much-you-pay

varian

I cannot understand the logic of National Insurance contributions.

NI is after all , just another form of income tax.

BUT those who earn less than £242 per week (£12,584 per year) pay nothing. Those who earn between ££242 and £967 per week (£12,584 pa and £50, 284 pa) pay 12% and above the income of £50,284 pa you pay ONLY 2%!

WHY!

Should the higher earners not pay a higher, not lower percentage of their excess earnings?

www.gov.uk/national-insurance/how-much-you-pay

High earners pay 12% on income up to £50,284 and 2% on income over that amount.

Not 2% overall.

varian of course they are paying 40% tax over that amount and higher earnings are taxed at 45% so they are paying considerably more tax overall.