AIBU Income Tax rise.

[H202too]

To be panicking about income tax rise.

Things are tight and to loae even £30-60 a month will be difficult.

I know people are talking about the mansion tax being a no go. But I would prefer this than taxing the workers as per usual.
The tax free rate should be put up. What a mess.

And without it would you be able to pay privately for all your and your family's healthcare, education, private security, road repairs, national security, pension etc.?

No, thought not.

Socialism only works when everyone who can pay in does.
We live in a country where benefit claimants have to be told how many hours they should work and how much they should earn - everyone on state benefits should be constantly looking for ways to be self sufficient. If they're not then it's a lifestyle choice not a safety net.

Landbanking is the answer. It’s when building companies buy up land for development but eek out the extent to which they develop said land. This, alongside the 1947 town and country planning act which allows local councils to kaibosh any/all planning applications, further constrains supply, thus pushing up prices.

The majority of first time buyers do so with 2 sets of wages and with a considerable bung from parents. This is the real two tier society we live in: those with considerable inheritance or help from parents and those without. It has consequences well beyond house purchasing power.

The most dangerous consequence is the effect said two tier society has on behaviour: those with an incoming bung just wait for said bung while investing less in their careers or savings, and those without a bung invest less in careers or savings because they have given up hope and see no point.

To go back to the OP’s post - tax rises on young and middle aged workers will continue to increase because a) they are in the minority so do not have voting power b) they have less wealth and therefore the ability to escape high taxes through e.g clever investing or moving to lower tax jurisdictions - governments know this

I think many are feeling a sense of hopelessness, like sitting ducks, as they see the government’s failure to cap spending will mean they are called upon with weasely words like ‘broadest shoulders.’ All this at a time when their current energy, food, taxes, national insurance, student loan, travel and housing costs are at an all time high.

This is something I’ve thought about often: the extent to which government spending is a genuine investment that future generations will benefit from. You could reasonably argue that increased spending on healthcare (which is primarily for the elderly’s benefit) and on pensions/benefits (similar beneficiaries), at the expense of investment (housing, transport infrastructure, schools, armed forces) is not wise.

I see it as akin to a couple in the last chapter of their lives stopping the upkeep/maintenance of their home and instead spending surplus income on maintaining their status quo that they have become comfortable with. After they are gone, all that is left is a crumbling house in desperate need of repair. A young couple who inherits or buys this house will have enormous repair bills to pay on top of the usual outgoings, at a time in their lives when they can least afford it.

Basically, the nation’s young are going to be left with a crumbling house.

Basically, the nation’s young are going to be left with a crumbling house.

It's falling down around them!

I’ve seen a lot of houses that were lived in by an old person for many years and they are invariably run down because they don’t have the income to deal with the maintenance

the whole retirement flat market is a scam - I don’t know anyone who’s inherited one that hasn’t been done over

there’s a lot wrong in the way we treat our old but we need wider reforms which will probably end up being cheaper on the long run

they are invariably run down because they don’t have the income to deal with the maintenance

My parents died with an eye watering amount in their current accounts. The issue wasn’t money, it was that they lacked the energy and motivation to maintain their house, they didn’t want the disruption the work would cause either. I imagine that’s more common than lack of money.

the stats on pensioners show very few are rolling in it.

the problem is being asset rich and cash poor and staying in unsuitable housing because it’s hard to actually find something more suitable or near your support network

But 25% of them are millionaires according to MN wisdom. Lack of energy and motivation is also the reason so many people are disinclined to downsize.

But 25% of them are millionaires according to MN wisdom.

That's not MNs wisdom though. It's more of a MNs thing to pretend pensioners don't have much money.

Tax the Buy-To-Let sector monthly rent Scumbags

No - I don't RENT and I don't do Buy-To-Let

I would not like to be
anything like Nicholas van Hoogstraten or that
H&W duo in Ashford , Kent --- who had HUNDREDS of
Freehold houses to rent out

How much food can they eat ? Quite a bit it seems

Chasing after Tenants for Rent money is not anything
like a good idea for me - even if Renters & Tenants are 100% perfect

It seems to go both ways, depending on the political point a poster wants to score. Tax them more - they’re all rolling in it, throw in “boomer” for good measure. Shocking that WFA is withdrawn - they’re all freezing to death and starving.

Acknowledging that we have an ageing population & that it costs or that we haven't invested enough in young people are not point scoring points imo. 🤷🏻‍♀️

Who said it was?

Shocking that WFA is withdrawn - they’re all freezing to death and starving.

These ones usually!

to BIossom-toes · Today 12:49

Mum & Dad had an eye watering amount ? It happens here locally as well

How much was Inheritance Tax & Probate costs then Lawyers fees
on the Will ?

Did it all go OK ?

Mum said her money was going to Cats & Dogs ..........
She really meant Battersea Dogs Home -- and she didn't
actually do a Will because she didn't like any
sort of Lawyers fees and because she had RAPID onset
Alzheimer & Dementia , lost control of her Life and the
TV Remote Control , she nearly burned down her house in Ealing

That was after she flooded it

She lost 90% of her Hunger & Diet except for Chocolate Mousse in a
plastic tub

She starved to Death - slowly - in a Hospice and then
in Watford Hospital and recognised no-one at all

Sometimes the symptoms of neural decay are not easy to see up close

So very sad

How much was Inheritance Tax & Probate costs then Lawyers fees
on the Will ?

I did the probate myself and the estate was under the joint IHT threshold so the only cost was the probate fee which I think is about £250/300 now. I’m so sorry about your mum, it sucks. 💐

It's not zero risk though is it? That's a naive statement

What was the risk?

Well it's possible to end up with a bad tenant who won't pay the rent. It's possible they will trash the place or they just don't look after it very well. The building should be properly maintained, maybe the roof needs fixing etc.

But most of all..if you have to ask what the risk is..its probably not for you.

Maybe you forget to comply with licensing laws.

There is no real risk if you have no mortgage on a rental, which the pp was on about.

In most cases pay 20% tax, major stuff written off against this tax liability, insurance against poor tenants, again set against tax.

Sell up, pay 18% CGT on profit.

A friend had a rental, let for 21years to the same tenant, she bought it for 41k, Tenant paid her 151k in rent, she sold for 226k...

There is probably less risk than leaving over 85k in a bank.

Having a mortgage muddies the waters but after 25years, you have a mortgage free house, that someone else paid and unless you were stupid enough to have an interest only one.

There weren’t any.

In addition to the risk of a bad tenant, who can often take years to evict using our court system, which is already creaking pre-reforms next year, capital is also at risk. We’ve all got used to house prices increasing and feel robbed when they only increase slowly, but this cannot and will not continue indefinitely.

DH and I have 4 properties that are rented out, through a combination of inherited assets and property we used to live in. We are both HR taxpayers, none of the properties are mortgaged, and I can honestly say that there is next to no money in it by the time repairs, any void periods, agents fees, accountants’ fees (for tax return) etc are paid. We don’t increase the rent for good tenants and my rental income takes me into AR tax territory, so it’s 62% of my income.

We keep the houses on, only because my DS is disabled and is unlikely to ever live independently. We are hoping the houses are something that he can handle more readily than a FT job, to give him a small income and a bit of independence. However, if the government wants to make life even more difficult for us, we’ll sell the lot and DS can live on PIP like every other bugger with his disabilities.

Incidentally, two of the houses have been (briefly) up for sale in recent years. We thought that one ant least would be a perfect “starter home”, but in both cases, most of the offers received (and the only proceedable ones) were from other landlords.