To ask what you'll be doing to avoid the Labour tax hikes

[OptimismvsRealism]

Pension contributions
Gift aid
Selling my shares now while CGT is relatively low

What really worries me is that all the professionals we actually need to want to be here will just fuck off elsewhere, though.

It's not like we're knee deep in hospital doctors.

I have no issues with Hedge Fund Managers. The comparison from PP was re: needing emergency drs vs needing emergency hedge fund managers. Emergency hedge fund managers aren’t ‘a thing’.

Most landowners have moved their estates into trusts so they and their descendants have the benefits but never inherit so there is no inheritance tax to pay. This arrangement should be voided.

So would I but, in fairness, as a pensioner I don't pay much tax, just a little each year. One year I was sent a refund cheque, goodness knows why. That was a pleasant shcck :-).

I can't imagine I will pay much more on my income.

Hospital doctors are getting a pay rise which is good.

I'm glad you value professionals like me to contribute into the country's coffers. Just to reassure you I'm not going anywhere, and definitely not as some kneejerk response to the upcoming budget. I can't imagine others will move elsewhere. The cost and disruption alone isn't worth the hassle, and no intelligent person will start packing their bags on a whim. That would be bonkers.

whyever are you rushing to sell your shares?That's even more bonkers! Do you know how CGT works?

• It only kicks in when you liquidise your assets eg shares so if you do nothing you won't get charged CGT.
• you have an annual allowance of £3000 on the profit , so that's a shit-ton of profit you will have to have earned on yourshares
• if you purchased the shares over several tax years that further mitigates the profit obligation. - If you do have shit-tons of shares, then count yourself lucky 😉

Yes we do need them otherwise the lower middle gets really squeezed.

Quite frankly £50k - £60k pretax does not go far in South-West London given the cost of rental properties. That level of earning does not make a person feel rich in the suburbs

I can’t believe there used to be a 90% tax rate. I can’t imagine many people paid it but that would be a massive disincentive to do anything above the threshold.

im glad income and NI won’t be touched but do worry what else they’ll go for. I wouldn’t want to see the introduction of a wealth tax for example or anything too radical that messes with people’s long-term financial plans. I could see pension reform (although they have to be careful as they need people to save for retirement), capital gains reform and inheritance tax being targets.

Just adding this in addition to my pp (Couldn't edit the original response).

I couldn't find a breakdown for the 60s but did find one for 1970/1971. Someone earning the equivalent of £100k today was paying a top rate of 78.75% back then, so they've only had a 33.75% tax burden reduction, the poor lambs.

The same Austria that has higher tax rates than the UK equivalent? Like a 50% rate over 93k versus 45% over £125k in the UK?

www.come2upperaustria.com/work/income-taxes www.come2upperaustria.com/work/income-taxes]]]]

He can't be that sensible.

Where have they said they are putting up taxes?
Plus they said no rises to income tax, NI or VAT, not no tax rises at all…

Yes.

@ClaudiaWankleman 😆 but he’s high earning! And sensible!

Always love to see a new variation of ‘my husband says’.

I would guess that private healthcare but state education is quite an unusual combination? Would guess there are more people who stretch to put their kids in private school then use the NHS. Could be wrong, though!

For the extra 5% he’d get (really) excellent healthcare, a transport and road system that is fantastic, cheaper insurances, great public services, education for dc which is very good and a decent pension if he pays in long enough. What is not sensible about that?

I live in a higher tax country and have no problem with it as it provides great public services and a nice society.

My daughter and her friends all get a nutritious hot lunch at school everyday, for example.

I would be annoyed at paying more tax in the uk as I very much doubt you will see much improvement in things that count such as hospitals and schools. Like previous posters have said we moved to provide more for our family…it was not the rate of tax but the awful public services that drove our move.

I have zero faith in this generation of uk politicians on either side of the house.

Agree

You're honestly going to sell your investments to avoid a possible increase in CGT?

Wow. If that's true you shouldn't be holding investments.

A lot of jobs provide private healthcare as a benefit - you pay a bit of tax on the insurance premium but it’s much cheaper than private education.

Hilarious. Think that has more to do with Brexit that the Tories wanted then Labour's taxes. Can't be the financial centre of Europe if Tories (who wanted to keep hiding their money) insisted we leave Europe

This is how I feel!

He's said no increases to income tax,NI and vat which means that the changes are (as expected) likely to be to pensions, corporation tax, inheritance tax and capital gains tax.

For most people pensions and IHT will be the only thing that will affect them. In all likelihood it will be a removal of the 25% tax free sum for new pension contributions and changes to the IHT thresholds combined with taking away the exemption when passing a mid value home to children. That will actually affect quite a large number of people.

I won't do anything. I will pay my fair share. Public services have been run into the ground for 15 years by the Tories. This was coming, it was always coming. You can't run a civilised society without paying a realistic level of tax. Labour are just being honest with us where the Tories repeatedly deflected, deflected, deflected.

Well said! We will end up paying more but for what? There will be no improvement in public services or infrastructure.

We’re not doctors but are Masters-educated professionals. We have applied for digital nomad visas and are planning to work abroad and rent out our home while praying that Labour lose the next election.
We both come from very poor families and have managed to get out of that situation for our own family through education and hard work.
Labour’s definition of ‘hard-working’ families does not include those that after many years of slog operate at higher salary levels.
We both have second jobs to give our kids a private education which is our CHOICE. However we can’t afford the extra VAT and there are fab private education opportunities abroad at much lower cost so we are giving it a go.
Good luck to all those delighting in the potential collapse of the private system. Your kids will be in even larger classes - a local independent primary to us is likely to collapse this Autumn with 55 pupils. Locally there are 3 State places available. Labour is not being honest with you about the impact on State School educated kids.

I won’t be doing anything - I’m delighted to pay whatever tax I’m expected to when they decide because I’m not selfish and our society needs it.

If my taxes increase I’ll find it more difficult to manage, but I’m sure I’ll get it back via healthcare or public services, since I use them I expect to pay for them.

@cardibach it's in the title