Geoff Archenhold’s Post

🚨Bonus Article Alert!🚨 🌹Navigating Financial Changes Under the New Labour Government 💼   The recent victory of the Labour Party in the UK general election marks a significant shift in governance after 14 years. With promises to maintain tax rates and a commitment to address fiscal fairness, it's crucial for individuals and businesses to stay informed about the potential financial implications.   The Labour government's stance on National Insurance, VAT, and Income Tax remains unchanged, providing stability for working individuals. However, potential reforms in other areas like Stamp Duty and Capital Gains Tax could signal changes worth monitoring.   Read our latest article 'What A Labour Government Could Mean For Your Finances' to stay ahead of the curve and make informed decisions for your financial future. 📈   Don’t miss out on our weekly posts here on LinkedIn, where we share a selection of articles from our blog series. You can find all this month’s articles on our website, or if you want to receive our articles as soon as they’re published, subscribe to our monthly newsletter by sending an email to info@bespokeifa.co.uk. We’d love to hear your thoughts in the comments!   #LabourGovernment #FinancialPlanning #EconomicPolicy #UKPolitics #TaxReform #NewArticles #BespokeBlogSeries https://lnkd.in/ecfBySxa

A good article breaking down what the recent changes in government could mean for your finances and the future. 📝

If you're wondering what effect the Labour victory could have on your finances then take a look at our latest article.

I'm not political, but, an interesting insight into the Tribune Group of Labour MPs... The six taxes Labour want to raise: 1. Extend National Insurance to all sources of income – including savings and property. Pension payments would remain exempt under the £12 billion tax grab but working pensioners would be forced to pay. 2. Remove cap on National Insurance. Workers now pay the 8 per cent main rate of NI on earnings up to £50,268, with a rate of 2 per cent on income above this. Under the new plan, higher earners would pay the main rate all the way up the income scale, raising £20 billion. 3. Equalise capital gains tax with income tax rates, raising an estimated £16 billion. 4. Plug gaps in inheritance tax by ending reliefs that allow farmland, business property and pension pots to be passed on tax-free. This would raise £4 billion. 5. Reform property tax to make it ‘fairer’. While those in low-cost homes would see bills cut, those living in more expensive areas could see charges more than double. 6. Introduce a ‘jackpot tax’ on ‘extreme wealth’ – raising £10 billion a year. The Tribune manifesto submission said the six tax rises are “consistent” with Labour’s values but “do not represent specific policy positions”... an interesting few years ahead for those of us working in tax" Ryecroft Glenton #madeinnland #tax #newcastle #muddyboots #business #election2024 Helen Pennock Amanda Cooper https://lnkd.in/ehEtTYth.

Labour may have to increase taxes on the UK’s wealthy, according to a new analysis. Keir Starmer has ruled out lifting income tax, corporation tax, national insurance or VAT — together projected to make up two thirds of all government revenue — if his opposition party wins the July 4 general election. But a weak growth outlook makes manifesto promises to stabilize debt look undeliverable unless Labour looks across the tax base, according to a Bloomberg Economics report. “The strategy might win it more support but it significantly reduces the party’s options for dealing with the fiscal challenge that awaits it if it comes to power,” said economists Ana Andrade and Dan Hanson. “A focus on wealth, pensions and businesses will likely be needed to keep the public finances on track.” Read more in my Bloomberg News story https://lnkd.in/er2c4Jeq

Almost four months after Labour won the general election, chancellor Rachel Reeves delivered her 2024 Autumn Budget on the 30th of October. Outlining the government’s plans for this tax year and beyond, here are the key highlights of what’s ahead for businesses, individuals, and families 👇 ▷ Extra investment in infrastructure ▷ A rise in employer National Insurance contributions ▷ An end to the freeze on Income Tax thresholds from 2028 ▷ Capital Gains Tax reforms and an increase in some rates ▷ Changes to some Inheritance Tax reliefs ▷ ISA subscription limits frozen until 2030 ▷ A change to business rates relief ▷ Corporation Tax capped at 25% ▷ A rise in the national living wage ▷ A freeze in fuel duty ▷ Second home Stamp Duty surcharge increasing ▷ Reforms to the non-dom regime ▷ VAT on private school fees from January 2025 ▷ An end to the £2 bus fare cap ▷ Changes to duties for alcohol, tobacco, and vaping ▷ Confirmation of the 4.1% increase to the State Pension under the triple lock Which of these changes do you think will have the biggest impact? For more information about these changes and what they mean for you, click the link in the comments 👇

Nearly ten thousand millionaires are predicted to flee the jurisdiction of the United Kingdom this year amid expected tax raids from the left-wing Labour Party government of Sir Keir Starmer. Hmmm 🤔 who woulda thunk it! While the previous Tory government of Rishi Sunak ushered in the highest tax burden since the Second World War, in large part to pay for the debts accrued during the coronavirus lockdowns, it is widely predicted that the fall budget of the Labour government will see further money grabs by the British state, with likely targets including capital gains and inheritance taxes. https://lnkd.in/dVgfACpu

Tax in the UK needs simplifying. The Labour Party plans to close non-dom Income & CGT, plus IHT loopholes on offshore trusts by abolishing transitional reliefs and ending 'excluded property' status. They also confirm no plans for a Wealth Tax or targeting expensive houses. Is this simple enough?

Today we awoke to the entirely expected result that Labour had won the election. What does that mean for tax? Labour have pledged not to increase: 1. Corporation Tax 2. VAT 3. National Insurance Contributions; or 4. Income Tax. The above four taxes are the largest contributor to the UK tax take, together making up 74% of total revenue. So Labour have given themselves relatively little wiggle room for tax rises to cover additional spending plans. Bear in mind the UK is already running a budget deficit of around £51bn (2% of GDP). There are rumours of a general Capital Gains Tax rise. But Capital Gains Tax make up just 1.7% of the UK tax take, so tinkering with this isn't going to raise much in the grand scheme of things. Notably, people can (generally) choose when to crystallise a Capital Gains Tax liability, unlike Income Tax. I can see three scenarios playing out: 1. The general economy starts to do well, naturally giving a higher tax take. Labour can spend more; everyone is happy. 2. The economy continues to flatline, so to spend more Labour break their tax pledges above. 3. Labour spend more without corresponding tax rises, increasing the budget deficit. But this is would be just kicking the can down the road.

This is why Labour will tax assets more WHEN they win a 3 figure majority in parliament next month. Yes they will tax the rich more, which won’t yield as much as they are saying because the rich can just move elsewhere. But that still won’t stop them from doing it so no point in arguing over what is inevitable. And more importantly this also means that they will tax the middle classes more too. In no particular order; 1. Unearned income (particularly property, but also dividends and interest) 2. Pensions 3. Capital gains 4. Inheritance tax (the headline rate may go down but the tax take will go up). The Labour manifesto will be out next week (what is the point in looking at the others from a tax perspective) and we will get a clearer picture of what the UK tax landscape will be like for the rest of this decade. It will be different.