“Keir Starmer has ruled out increasing income tax, corporation tax, national insurance or VAT — which together 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. [ ] A focus on wealth, pensions and businesses will likely be needed to keep the public finances on track. [ ] Capital gains is one of the main options on the table. Shadow Chancellor Rachel Reeves has floated aligning tax bands for capital gains with those for income, with the top rate going from the current 28% to as much as 45%. [ ] Other targets could include council tax — a levy on residential property — and reducing the generosity of pensions-tax relief for higher earners. [ ] With no obvious policy lever to reach for, Labour will have to get creative.”
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Entrepreneur, Scientist, Engineer and Investor in high technology sectors specifically Intelligent Building, Smart Lighting, LiFi and Indoor Positioning
After a somewhat obviously first leaders debate outcome this week I think the general public are starting to understand it doesn’t matter who they vote for at the U.K. election the taxes are going to go up! Therefore, the The Labour Party focus of saying vote for change may become a blunt instrument and the focus of The Conservative Party should be on how to deliver change and why it would be different this time if elected. I’m still waiting for the detailed manefestos of all parties so we can actually see detail which in my opinion is still lacking. However the city seems to have voted on what it thinks Labour will happen under a Labour government. I certainly think higher income tax for the highest bands would be accepted by the mass population but not accros the board but after the backlash by the conservatives increase in corporation to 25% I’m not any party would increase the headline rate. However, being smart a party could try and push through changes that forces corporation tax to be paid on U.K. sales rather than profits for multinationals so that profit offsetting is eliminated somehow! Either way I think the electorate is beginning to understand they will be paying higher taxes whatever happens unless the country learns how to be more productive! https://lnkd.in/ezxiWwQY
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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
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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
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We currently have a brief window to secure current tax rates... What we know: - A general election must be held by 28 January 2025 - The expected date is October - Labour are predicted to win What we think we know: - That Labour will either or both raise Capital Gains Tax rates/limit reliefs, such as that which confers a 10% rate of charge on up to £1 million of qualifying gains - Remove Inheritance Tax Business Property and/or Agricultural Property Relief What you should consider now and why: - Crystallising the value of your company for CGT purposes before the general election, particularly if you intend to sell within the next decade - Review or introduce, your IHT planning - Labour might find it appealing to hold an emergency budget along the lines of: we will tell you what we intend to do next year (2025) but whatever that ends up being it will be effective from today If you would like to discuss any of this further, if only to understand the options available to you, please get in touch with us.
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Tax Director at Alexander & Co | Chartered Tax Adviser | Chartered Accountant | International Tax Affiliate | Trust and Estate Practitioner
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.
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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
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Xero Accountant | Finance department for busy business owners | Ecommerce Specialists | Crochet Ninja
Autumn Budget Summary 2024 💜 This is the first budget under the new labour government and it is the first budget to be delivered by a female chancellor – so history in itself! The things that are not changing: 💜 Income Tax, VAT, and most National Insurance rates are not changing. 💜 Personal Allowance thresholds for Income Tax is being held in line with the previous government timeframe. But it will be increased in line with inflation from 2028/29 tax year. 💜 Main rate of corporation tax at 25% on profits over £250,000 will be held until the next election in 5 years Changes include: ➡️ Capital Gains Tax ➡️ Inheritance Tax ➡️ National Insurance ➡️ Stamp Duty ➡️ Minimum Wage & Benefits ➡️ Smoking, Alcohol & Fuel ➡️ VAT on Private School Fees To read about the changes and how they may affect you here - https://bit.ly/4ef9Kzn #TurasAccountants #AutumnBudget2024 #Telford #ShropshireAccountants #TelfordBusiness #ShropshireLife #ShropshireBusiness #TurasAccountants
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