Anyone watching the Budget 2024?

[LadyofRutshire]

I couldn't find a thread on today's budget. Anyone watching live?

Slightly better...it is completely better and do you not think that others have to deal with similar people? Pay people better to compensate or hire more people to share the load, but put pensions on a level playing field.

We should all transfer to the public sector and use the magic money tree to produce our wages and tax payer funded pensions.

Keir will always provide.

So I will tell you because I’m on universal credit. I do currently live in a public sector housing provider but when I lived in private basically everybody gets a local housing allowance so if your rent is say £500 a week and the local housing allowance says that for a single person that is £500 that’s how much you get so you don’t have to put anything towards your rent now they are increasing. They may well increase the local housing allowance as well because that does get increased for a month to month and it is based on market factors as well.
. so it depends on what you pay depends on what you’re in allowed because two people can get two bedroom allowance. It depends on that factor and if you have to top up sometimes they will help you to order the discretionary fund to help top it up.

Markets are forward looking - gilts had already jumped in anticipation of the budget weeks ago. The trade is over the moment the event happens.

I don't think that is true, because SDLT is payable on completion, not exchange?

Who needs businesses after all

The IHT on pensions is massive. It has an enormous impact on those with private sector pensions. It will push a significant number of people into the IHT category.

If as a couple you have a house worth 500k, and two pensions worth £300k (each providing a pension of about 10k per annum) there will now be IHT payable on the estate.

Genuine question, so why did the Truss/Kwarteng budget cause such a massive reaction after the event?

Who was the red haired woman standing at the back the camera kept focusing on?

Did they mention debt servicing which is higher than the defence budget and going up?

Does anyone know if a spouse inheriting a pension will have to pay inheritance tax?

I have three young children and can't get life insurance because of my history of cancer. I've been paying extra into my pension as a substitute for life insurance, so that my family can pay off the mortgage with that if the cancer recurs and I die.

I'm unclear of the implications of the budget, would my husband have to pay inheritance tax on the whole pension?

They are trying to destroy intergenerational wealth unfortunately

Some people are…

You didn't hear it from me but there is a practice known as gazundering...

Because the policies were completely unexpected. The markets were looking for a similar reaction this time.

True but the legal obligation to proceed with the completion arises on the exchange of contracts .

Im a retired solicitor and talking about my own experience in the pretty distant past my post was primarily to motivate the pp to get onto their solicitor today

But only after both of the couple are dead? The beneficiaries will still inherit a tidy sum. Lots of pensions die with the remaining spouse anyway, don't they?

But surely pensions are there to provide an income in retirement? But you won’t be needing it when you’re dead. So any pot left is a bonus for your beneficiaries-and as you got tax relief at your marginal rate on contributions plus 25% tax free-why shouldn’t any remaining pot be a normal part of your estate?

@ShakerRoll it will depend on the arrangements for the disposal of your estate and how much your estate, which will include your pension, is worth.

There is no IHT payable when the first dies (spousal exemption) but there is IHT payable when the second dies

This is going to dramatically change the farming landscape. Will depend a bit on the detail of the gifting rules

The machinery on our farm alone is over a million!

I reckon pensions thing was also to scupper farmers buying land in pensions. That’s been a bit of an IhT avoidance thing for a while.

I have one rather depressed husband this afternoon!

I'm not an expert but farms vary widely. There are huge farms in East Anglia coining it in from growing wheat, potatoes etc and benefiting from enormous economies of scale and able to negotiate with supermarkets and huge food congolomerates on fairly equal terms. However, there are many tiny farms doing valuable work across the country preserving rare breeds, making artisan cheese, using land for grazing sheep that could never be used to grow crops, and so on. When these farms are passed on they may be valued at a huge sum on paper but the families who own these farms are asset rich, cash poor. They're not making much money from their farming. They have to take the terms they can get from retailers and wholesalers. If these farms go under it will have a very significant effect on the UK landscape, environment, culture and economy.

Currently the financial advice is to spend all of your savings but to try not to touch your pension for as long as possible. This is because cash forms part of your estate but pensions don't. That financial advice will now change.

Louise Haigh - Secretary of State for transport. If I’ve got the right one you’re thinking of

My pension currently has £200k in it, and we have about £400k of equity in our house (jointly owned). Nothing else. Everything will go to my husband. Will he now have to pay inheritance tax on the pension?