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.

Social care and care homes are generally provided by private companies aren’t they? I know of very few state owned homes and state employers carers where I live now, 30 years ago there was more

Not yet.

But it’s one of the proposals put forward by the think tank who are getting a lot of publicity at the moment…

Now. There’s no reason why it couldn’t be introduced. That would properly stuff up the housing market.

From a quick google, in June Keir Starmer "categorically" ruled out charging CGT on main residences.

I'm making a plan to fuck off from this country. Super unhappy and don't think it will get better

This is in one of the documents I read earlier - not for utility bills but for property tax.

They acknowledge that in some areas people on low incomes will be living in homes that have shot up in value. If a 0.5% annual property tax was charged they may be unable to pay. The proposal is that payment is deferred until the house is either sold or the owner dies.

However I can’t see how that would work with social care. Currently a homeowner is self-financing and the home is often sold to pay for care either before death or after if a spouse is still living there. If there is a deferred charge on the property for tax and the remaining spouse lives another 10+ years then there will be no equity with which to settle the care bill.

No idea how they intend to square that circle.

Just out of curiosity ... all those who are leaving- where are you going?

It would be political suicide, and would adversely impact inward investment as well as banking liquidity.

I beg Labour to try it.

He also said the WFA was safe with Labour at one point, didn’t he?

Point is, since June Reeves has found this unexpected black hole in the finances so projects are being cancelled left, right and centre whilst they have also told us to prepare for a difficult budget with likely tax rises.

What was promised in June may no longer be considered viable.

It would not really work because of that. 0.5% house value tax a year on £350k house would be £1750 a year or £145 a month for many. My council tax is already £400 a month so I feel I pay through the nose for property as it is never mind massive stamp duty when we moved her (it had doubled from year before) and 40% of most of the house goes to the state in IHT when I die even though a lot of my equity is from earned income due to my divorce. 0.5% on a £2m London place would be £10,000 a year, quite a bit for an old or young person to find. There are quite a lot of not particularly massive London houses worth £1m and even £5k a year (and of course it might start at 0.5% but just like incomr tax which came in briefly to fund a war and is with us 200 years later it woudl not go ever and would increase more and more) would be a lot.

I have never heard more blatant scaremongering nonsense.

https://ifs.org.uk/articles/how-could-chancellor-raise-more-tax

CGT on main homes is not even on the radar of the experts. It’s pensions tax that’s the number 1 target.

It didn’t take long for the threads championing Labour to diminish - isn’t this what you all voted for? 🫠

Boom! Post of the night.

And only an idiot would consider subjecting family farms to inheritance tax, thereby forcing later generations to sell up to settle the bill. But then, guess what’s on page 49…

”It [inheritance tax] needs to be either reset or shifted wholesale to a tax on the receipt of any gifts throughout a lifetime, making tax on all gifts equal and thus avoidance more difficult. A land tax could help raise tax more fairly from the 0.6 per cent of the population who own 69 per cent of the 60 million acres that make up the UK.”

And yes, that includes farms.

So just because it’s a ridiculous and damaging idea to impose CGT on the family home don’t think that will put them off the idea all together.

https://www.rachelreevesmp.co.uk/wp-content/uploads/sites/96/2020/09/374425087-Rachel-Reeves-The-Everyday-Economy-1.pdf

Yes, all those people sitting in mansions worth £600k…

I don't quite know how to tell you this kindly, but you can't buy a two up two down terraced house anywhere in London for £600k. Croydon, probably; Braintree possibly.

Nothing to do with the weather then?

I suppose ultimately it doesn’t matter as they are getting the full value of the house eventually in this scenario

I didn't buy a £600k house 32 years ago. I traded up from a £30k house to one that two people could buy together at £100k. Inflation did the rest. HTH.

Sleep tight love

Agricultural property relief is the biggest con going, and before anyone starts I don’t mean for genuine farmers and genuine farm houses. Rich people who live on country estates with a few acres of land, essentially just a massive house with large grounds. All they need to do is farm some of thst that land by putting a few sheep or cows on it or growing some crops, they don’t even have to get their hand dirty they can employ someone to do. House and grounds then qualify for APR and are not included in as part of the estate,

im not actually sure how you’d tackle it though without harming genuine farmers but it is a way that very rich people can get out of paying alot of inheritance tax

Genuinely am I the only person on this board who doesn’t live in London/SE because the lack of perspective that there are other parts of the UK that exist is truly astounding.

Except the deferred tax would go to the government but the social care costs are owed to the private care home provider.

Local authorities negotiate a lower rate for those they fund but anyone with assets has to pay more.

With interest on deferred property tax I don’t think there will be much left. If the LA pays reduced rates and claws the money back via reimbursement from the government from the deferred property tax then the private care home would be operating at a loss.

Debts to the government take priority so many care home companies may think twice about accepting self-funders who can’t pay in cash.

@StarrySkiesAtMidnight

thank you for sharing this link. I watch the topic closely and this got me properly scarred. It's much worse than anything discussed in press. If they implement a fraction of ideas... welcome to the USSR...