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.

Rigatone
Me too.

Or they will stay and put everything in trust.

How confident are you your higher taxes will be used for the greater good?

Do we even know what tax changes there will be yet?

@CowTown err, no. When I said I would pay more tax I meant it. You asked how much and I explained that I couldnt work out how any tax rises would affect me but that I am already paying an extra £200 a month and would happily continue to do this. What is your issue?

I know lots and lots of people who are working part time due to the childcare cliff edge issue.

It’s very common - particularly if you have maxed out your pension.

Their research shows that if you want to get the max IHT you need to bring the %tage right down and remove exemptions. IHT of 5%? Far fewer people with larger estates would bother trying to avoid it. 40%? Hell yeh they will! And it’s a very easy tax to avoid if you can afford an advisor who knows how to.

I work in this area and predict no Corp tax rises, but employer NICs are thought to be likely to rise.

@MidnightPatrol ah now let’s not let the facts get in the way of a good bit of scaremongering..!

I guess this is where the early tax dodging starts.....

What do you mean by unearned capital? I’m not sure if I do that or not!

I’m retired and get pensions from two jobs I’ve had which is enough to cover my basic expenses but not things like replacing the car, holidays, house improvements etc. I use savings to add to my pensions for such things. My savings have come from money I was able to save in the last 15 years of working after mortgage was paid off and children had left home - so tax paid on those savings. Some savings were from the tax free lump sum from my teachers pension, not my choice, it’s part of the scheme and means that the monthly pension is lower. Any other savings are from increases due to investments in my saving funds, but I’ve never worked out the losses caused by falls in the markets.

Does this mean I live off unearned capital which appears to be a bad thing to do?

I was looking forward to taking the 25% tax free element from one of my funds which is a pension fund based on a share of my ex husbands pension in my divorce and some additional AVCs I bought when working as a teacher. This fund has been untouched for over 15 years and the plan is to drawdown funds as and when I need them once my other savings have been used up. But the tax free element is important to me so I am thinking of taking it before the budget just in case!

My children will be hit with any increases in inheritance tax, as a divorcee, I only get half the allowance a widow could get but so be it, nothing I can do about that and I won’t be around anyway!

I would drawdown the full 25% and stick it in ISAs depending on how much you have

Happy to pay more and I’m retired

The happiest countries are the ones with the highest tax rates. Because everything actually works.

It's far more efficient to just be able to get a bus to work every day knowing it's going to turn up on time and the drivers are paid enough to make it worth it to them, and going to see a doctor or dentist in one session instead of having to make multiple appointments if you want to get your teeth cleaned etc.

And scale it up - it costs far more to treat someone with stage 4 cancer than someone who can get a lump removed quickly.

You don't do that and what happens. All kinds of knock on effects until everyone is pissed off and nothing works.

No it's not going to happen overnight that everything is fixed, we're looking at years and years of being behind and things declining.

Scotland doesn't have enough freedom to do what it actually wants to do, which is why it can only implement half a plan and not see the benefits. Plus there are downsides re temperature and remoteness of a lot of places.

It’s lower and middle earners who need to first earn more and then pay more tax. That is the difference to most other European countries. Higher earners here already pay a ton of tax but then just keep demanding higher wages. It’s better if there is more wage equality and everyone pays more tax. Causes less resentment.

It’s also madness to punish private sector pensions when public sector pensions are so incredibly generous relatively speaking. The divide in earnings and pensions between private and public sector also causes resentment. Would be better to equalise that somehow too - compulsory pension contributions for all, pay public sector more, phase out final salary pensions.

Trusts are taxed you know. There’s no easy way to get out of tax.

I agree with that. Public sector pensions are massively expensive for the government and there is just no equivalent in the private sector. There is also a huge funding risk that sits with the state.

I think they should all be turned into defined contribution schemes.

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.

This will really blow your mind - when I started work in 1971, the basic rate was 33% with 9% NI on top.

If you have all of those advantages you can afford to pay the minimal extra tax. The rest of us will continue to be the "squeezed middle".

Same as the previous £50k poster I'll pay the extra few quid.

Charity is a choice. I get to choose who my charity money goes to and I can stop at any point, no questions asked. It’s not the same as taxation.

Are you referring to UK trusts?

All of this.

I am not sure the new government has announced any tax changes yet, except for a reference to non dom status in Keir's speech today.

All the affluent people on here will whine if they have to pay a bit more tax, but they'll whine even more if a loved one dies because A&E couldn't see them fast enough.

We need to pay more money for effective public services.

If you don't agree with that, move to the US and vote for Trump.

@CowTown Yep, thanks I am aware of that. I was just responding to your question and quantifying the amount I would happily pay towards public services and the welfare system. If we had decent ones, we wouldn’t need as many charities.

Wow your attitude to your own mother is...unpleasant...but if you want her to take the brunt, you will agree she pays lots of inheritance tax before you 'use your share proactively'

Nothing. I'm on minimum wage, so likely won't be affected.

Yes IHT is very easy to avoid. Hoard your wealth and it will be payable from your estate.

So if you don't like the idea, spend it and give it away early!

I do think it needs some reform, so it doesn't affect eg siblings sharing a house and the idea that you have to pay it before you actually get any money is laughable.

I also think it is geared towards the elderly, and there are problems with it if someone dies with dependent children although the higher thresholds probably largely deal with that.