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 don't know why anyone is surprised, and I voted Labour for years till realised they were the faux-socialist party they've become.

They knew they were going to pay their union supporters, hike taxes and piss people off, they're now pretending they've been stunned by the black hole.

They've already gone for the pensioners and nobody should be any illusion that they're just going after the rich because they're not.

PIP will be the next means-tested benefit and I don't disagree with it. But it's not at all what they presented themselves to be and it will be the same excuse "we didn't really know how bad things were so we have to make difficult decisions and it will be painful so sorry about that ".

I do support higher inheritance taxes but unfortunately they are too easy to dodge.

People seem to have an irrational hatred of them as well. The vast majority of the population will never have to pay them, but have a huge aversion to them.

Dodging property taxes is much harder. It's pretty difficult to dismantle your house and land and relocate it to some tax haven. Some would argue it's impossible to do with land.

People do actually pay it, it’s incredibly difficult to evade because assets can’t be sold without probate and probate isn’t granted until IHT is paid. It can be avoided with advance planning and expensive lawyers but most people can’t afford those.

@GasPanic TBH I don’t have an issue with property taxes, it’s more the overall cost of them.

It shouldn’t cost £12k a year in taxes to live in a small terraced house. That seems absurdly high.

I mean, it’s about 50% of the average salary after tax.

And that’s before you’ve paid the mortgage.

In comparison to other countries - it is you who should be paying more tax anyway. Nothing noble about that. You’re a middle earner. Not a high earner. You still have your PA for a start.

Yep and child DLA. Hence why the DWP are leaking all the statistics about 40% increase in disabled child claimants. To the point it was front page broadsheet news. People are being distracted by red rags…ohhhh look over here at these horrible 6 figure earners, private schools fees, pensions, etc.

All the while RR is laying the groundwork to take and change the lay out of the whole welfare system.

She’s in the top 10% salary bracket. That’s a top earner.

Taxing houses people already own over and above council tax, will simply mean people will be made homeless. There are lots of people in 2 bedroom bungalows whose properties are worth a fair bit, but with not much cash.

This is so true. In particular there are many single parents in this country who earn this, pay 40% tax and are really struggling, particularly in the south east. At least my single parent DD will be getting Child Benefit now, previously she didn't although many households with two slightly lower incomes did.

Fortunately she bought a flat when she was young, there is no way she could buy here now. In other areas she could in theory afford to buy but would not get the higher wages she gets here.
Like others I feel that it is the mega-rich that the tax man should be chasing, as well as multinationals with huge UK profits.

I’m in the camp of doing nothing and just paying more (if and when it does hit income tax, which I don’t think it will in this budget). We’re both six figure earners, but no DC still so our disposable income is in the several thousands even with our higher tax liability, I’m absolutely the person who should be paying more.

She’s not. 85k is not highest tax, nor do they lose all their PA and other allowances. Not a high earner. Exactly the kind of person who should be paying more tax in comparison to other countries. They benefit from a generous PA. Middle earner at best.

I think the bands I heard were around 0.5% for most properties or 0.88% for 1m+ homes
@Rhayader
I will pray for this to happen, I live in a small modest flat and I pay a ridiculous amount of council tax 🤬

Top 10% is by no definition the middle. I really hope you don’t work in finance.

It’s not in the highest tax bracket, but how is someone in the top 10% of earners - which starts at around £67k - a “middle earner”?

Not a high earner for tax purposes. Not compared to other markets and our taxation system. Have you figured out the difference between debt and deficit yet?

There are no political ideology left in the UK political system. It is painful to see politics driving a bitter rift between low and middle earners while the politicians are in the pocket of the multi millionaires. Why has there been no talk of a one off wealth tax on the mega rich? That will fill the deficit just fine and they will not even notice. It isn't going to happen because the electorate is stupid. For those saying the high earners can leave just fine and they will not be bothered there are only circa 600k people in the highest tax bracket. That is scarily low number to have fluctuations in. Also there is no incentive for highly skilled and highly paid people to come to the UK. The UK has decades of low growth and there is no political or public will to change that. London is the sole engine of growth. No will to change that again but all the will to penalise those in the SE. There isn't another country in the world more hell bent on self sabotage.

Quite. Yet the same posters will sit on here all day blaming those 600k bank rolling them.

Top 10% already pay for over 60% of income receipts. (Source ONS). Someone on £150k earns 5x the amount of someone on £30k but pays 10x the tax. (Source: HMRC self calculator). We need growth (a bigger pie to share out to those in need and provide public services) and not more taxes on an ever decreasing pie. Extra tax has never driven extra growth anywhere in the world. Sometimes you also have to put actual facts ahead of ideology to support the greater good… eg. Corporation tax at a high level feels great - such as make the greedy banks pay more. But if the rate is to high and it stops corporate entities basing their HQ in UK we lose far more than the tax increase gain. That’s why there are so many HQs based out of Ireland and . Low corporate tax. But if you try and attract business here by reducing this rate labour screm that you reward big business and idiots believe they. Likewise with 45% income tax. It’s a proven fact you get more tax income at 40% vs 45% but ideology and politics of envy overcomes common sense in this country - totally nuts. Look forward to more envy driven tax increases that don’t actually grow total UK gdp.

I wouldn't worry about it.

It won't happen because a) it would actually be taxing the rich, who are normally disproportionately invested in assets and b) because it would actually work and raise revenue and be impossible to avoid, and all those MPs and A-listers with large property portfolios would end up stumping up a fortune.

Government(s) would much rather raid the pensions of working people instead.

There is constant talk of taxing the mega rich but there is little understanding or agreement on what that means. I met with a university friend the other day who does not work at all. He lives off a trust fund and owns 3 properties in Kensington, 2 of which he rents out. He has investments, mostly in crypto, which he gets money from.

I said how the government were considering increasing capital gains taxes to be in line with income tax and his reaction was that they should be going after the mega rich, not people like him. His net worth is tens of millions and he will likely never work but he doesn’t consider himself to be mega rich because he is not a billionaire.

To some on this thread 67k is mega rich but to others it’s just scraping middle class. Labour front bench need to decide what rich is. Is it folks who have high incomes? High net worth? Will we exclude primary residence? Will we exclude pension savings?

PIP does need reform.

250k new applications in the first 3 months of this year for various reasons. And many MH or ND issues being in the top 20 of most awarded.

It will change, both possibly means-testing for all, and PIP awards for MH or ND being reviewed conditions.

And those reforms need to happen.

But that's not what Labour voters thought they were voting for and inevitably, cracking down on innapproriate claimants will always mean more diifficulty for all claimants.

That is true with all policy, isn't it. Devil is in the detail. It would be good to see some political will though. Start with the billionaires and work down to the 67k folks. It will never be that way though, will it?

If pension tax relief is reduced for higher/additional rate tax payers I will drastically reduce my hours - I'm currently paying loads into my pension as I'm over 50 and getting ready to retire in a few years.

But I'm not willing to pay tax on pension contributions AND ALSO on my pension on the way out.

I'm sure that way of raising more tax going to help productivity dramatically... 🙄

Oh I agree. Likewise a 40% in child awards needs seriously looking at. Not just for now but what on earth does that mean for the future? How is that sustainable? It does not bode well.

All of this is being spoken about - it’s just people are distracted and not paying attention. It won’t just be the ‘rich’ they are coming for. It’s everyone. We are in deficit still so we don’t have enough to pay the bills. Tweaking taxes on an over taxed minority on PAYE won’t fix that. Neither will stuff like pension relief as it will hammer investment in the UK.

It is going to need huge change in the whole social/welfare/nhs. The comments and the slow drip feed of this is happening. People just aren’t paying attention.

One of the suggestions was to offer a flat 30% for everyone. I think if they did that couples would pay more into the lower earners pension as they likely have a smaller pot size so there will be less tax on the way out.