Adam Rollason’s Post

The Scottish 🏴󠁧󠁢󠁳󠁣󠁴󠁿 tax system is absurdly complicated, mainly just to allow the £28 per year “Scottish advantage” (for •most• taxpayers🙄) to be crowed 🐦⬛ about. £28 per year…. Meanwhile the “Scottish disadvantage”, the extra tax faced by those earning above £30K, is certainly a legitimate policy choice. But will the extra tax be wisely spent so as to demonstrably improve public services? 🤔 And what impact will the employer NI hike (not devolved, therefore purely a Westminster “all UK” decision) have on wages and employment 🏭 in Scotland? Lots going on😱. Commiserations to all you Scottish taxpayers😀 Thanks to ICAS - The Professional Body of CAs / Justine Riccomini MSc FFTA AIPA Chartered MCIPD ChFCIPP for the pictured analysis showing the year on year Scotland impact of tax/NI changes and Sco v rUK. (Caveat: table applies to non-savings income only, because savings income in Scotland is subject to UK (not Scottish) rates and bands, more #complexity🙄) #Scotland #tax #ScotBudget

IPPR: Tax reform could ease regional inequalities  Labour is being urged to implement an £18bn tax reform aimed at addressing wealth inequality as Chancellor Rachel Reeves prepares for her first Budget. The Institute for Public Policy Research (IPPR) suggests that the current tax system's bias towards wealth is "one of the most significant barriers to levelling up that we face." IPPR analysis shows that around 40% of investment income in the UK is generated in London and the South East, despite those areas being home to a just quarter of the UK's population. The IPPR's report suggests equalising capital gains tax with income tax to raise £68bn before the next general election in 2029. It also recommends a unified tax schedule for all income types and reforms to property tax, including replacing council tax with a proportional property tax. 

Another day, another manifesto – this time it is Labour's turn - and again containing few real surprises on tax. Pledges not to increase the rates of national insurance, VAT and income tax, and for corporation tax to be capped at 25%, are repeated; the absence of a similar commitment on capital gains tax (CGT) sparked immediate commentary, although Rachel Reeves has stated that there are currently no plans to increase CGT rates. Long heralded promises to close 'loopholes' for carried interest and abolish the non-dom regime 'once and for all' are also repeated but without any new detail – on the latter the press release in early April in response to the Budget announcements remains Labour's last (published) word. Other revenue raising measures include an additional 1% SDLT surcharge for non-UK residents buying residential property and applying VAT and business rates to private schools. Change is signalled, with a review of the pensions landscape and the promise of a roadmap for business taxation – but a commitment to only one major fiscal event a year. #GeneralElection #NonDom #Tax

Will Labour increase gains tax rates: and if so how should this affect your investment strategy? Whilst Labour pledged during the election campaign that they would not increase income taxes during the coming parliament they didn’t mention anything about gains tax. Not surprisingly, the investment community fears that gains tax is an ‘easy target’ for a government that needs to raise as much tax revenue as they possibly can to finance their growth ambitions. #labour #incometax #TAX #investment #changes 

Capital gains and wealth taxes - again... Some say that tax is politics, and unfortunately that's probably largely correct. And capital gains taxes and the like are now a constant political football. But the tax debate should be wider than just tax. It necessarily must look at what are the actual tax revenue needs, and that requires things like an understanding of what role government is going to play in all of our futures versus to what extent we will have self-responsibility, and consequently what is the government expecting to need to spend to help us achieve the quality of life we expect in a developed nation. These are challenging questions at the best of times. We need some quality, adult debate on these things. Capital gains taxes are complex, and wealth taxes and the like are essentially an attack on peoples retirement savings. Neither should be implemented in isolation, but only as part of a broader rethink/recalibration of the NZ tax system. Getting that right will high quality input, and won't be helped by political gaming... https://lnkd.in/g8e2qTYR

I believe I have the answer 💡 to the question everyone is asking 👇🏻 Which major tax will Labour increase? 🤔 Let’s play the exclusion game - Income tax: Labour ruled this out - VAT: Labour ruled this out (expect for private school fees) - National Insurance Contributions (NIC): Labour ruled this out - Duties: possible on alcohol and tobacco, but I am going to rule out any increase on petrol and diesel (too unpopular) - Corporation Tax: Labour ruled out raising the main rate beyond 25% (the current level) - Inheritance Tax: it is already quite unpopular @ 40%, if anything in fact they may increase the personal allowance - Insurance Premium Tax and Bank Levy: these are not major taxes - Environmental Taxes, including Climate Change Levy: see my comment on Insurance Premium Tax - Customs Duty: raising this may have a very negative effect on inflation, so no chance… - Stamp Duty Land Tax (SDLT): very unlikely as the Shadow Chancellor has even ruled out a mansion tax on expensive properties There is only major tax left………………… !!! Capital Gains Tax !!! Bearing in mind that the main CGT rate in the UK is currently ridiculously low (20%), I expect Labour will equalise the taxation on capital gains with income tax (perhaps with the exception of the CGT rate on residential properties subject to a limit). This could raise between 15 and 20 billion £ a year When will they do that? In my view as early as this Autumn in their first Budget #taxation #uktaxes #ukgeneralelection

As discussions around Labour potentially introducing a wealth tax continue, our latest article provides an objective overview of what this could mean. We explore how such a tax might be structured, with examples from other countries, and consider the possible effects on individuals and businesses. Read on to learn more.

What's really happening with your taxes? 🤔 'One of the key weapons in the government’s armoury for raising revenue without the bad press that goes with putting up headline taxes is a phenomenon known as fiscal drag.' I was interested to read the article by Faith Glasgow for interactive investor, which provides a helpful explanation on this important topic. #Taxation

Neame & Co Q&A: What Labour's Election Victory Means for Your Taxes Wondering how the recent election results will impact your taxes? Here are the key takeaways: - No changes to Income Tax thresholds until 2028. - Corporation Tax remains unchanged. - Abolishment of the non-dom loophole. - Reform of Capital Gains Tax. - VAT to be imposed on private school fees. Income Tax will see no alterations in bands and rates, frozen until 2028. Corporation Tax will stay the same, maintaining the £1million Annual Investment Allowance and a focus on boosting investments in UK R&D. The non-dom loophole is set to close, with UK Inheritance Tax applying to all foreign assets within trusts. Capital Gains Tax will see private equity fund managers' bonuses taxed as income at 47%, was 28%. VAT rates will remain stable, but private school tuition fees will become subject to VAT. Have more questions or need advice on navigating these changes? Book a call with us today for expert guidance. We're here to help you adapt to the latest tax legislation. #TaxUpdates #UKBusiness #LabourGovernment #IncomeTax #CorporationTax #NonDomLoophole #CapitalGainsTax #VAT #PrivateSchools #BusinessAdvice #NeameAndCo #Accounting #FinancialPlanning #BusinessStrategy

Watch this space. With commitments made to not raise income tax / VAT / National Insurance it does not leave any room to plug the gaps in the public finances. Are new wealth taxes on their way?