What financial steps are you taking to hedge the risk of a Burham Budget?

[Toohotforwork]

With all the financial uncertainty at the moment what are you doing to prepare/de risk Burham's actions?

We were in a chain to move house but have pulled since we don't really need to move. If the wealth tax came in the new house would be a silly choice and if stamp duty changes we might be better going somewhere else.

I think CGT will increase so we have trimmed our share portfolio a bit. We crystalized some gains and rebased them to current valuations.

We have taken cash that was sitting in the business out to protect from dividend increases. We'll decide where to invest it once we have a bit more clarity on what is going to happen. If interest rates increase will pay down the debt on our rental for example.

What have you been doing to hedge your finances?

Interesting thread, OP.

We are currently awaiting probate to clear on a property purchase of just under £2m (price moved from just over £2m to just under after the Autumn budget, then seller ended up dying) and we’re not sure what to do. At a 0.5% annual property tax, we’d go from paying £2,500 in council tax each year to c£10k. Applying a 4% discount rate to the differential should mathematically mean the house is worth £187,500 less. If no allowance is made for paying the £150,000 stamp duty then we could be ‘losing’ a big chunk of value if we go ahead as is.

Otherwise, no other Burnham specific changes so far, but I have reduced my pension contributions right down (only enough such that I get the full employer contribution) given it appears that’s the next thing the government will go after and I’d rather have money in my pocket than locked away in a vehicle where the rules could very easily change.

Nothing we have done is dramatic. It is all small stuff to reduce risk in uncertain times. Once we know what the financial framework is we will recommence moving or stay where we are - its not a big thing.

None. Just hoping his reign will be a short one.

We will all have to wait and see but I am very concerned by the advisers he has - every single one seems to be as thick as shit. Not one of them has ever worked in the real world.

Hoping wealth tax/ stamp duty come in/ go. Then I might move (downsize). I see positives

Whats happening in the Gulf is having more of an impact on our finances than anything Burnham may or may not introduce !

I doubt there will be any change in the short/medium term that's worth faffing for.

Unless the new Chancellor decides otherwise the budget will be in November and changes other than duty on alcohol or fuel are not likely to be effective immediately.

Trimming your share portfolio
crystallising and ‘rebasing’ your gains
protecting dividend increases
taking cash
deciding where to invest
paying down debt on the rental

Your posts sounds like a spoof. It could have been written by PrivateEye.

I don’t think you’re going to go skint, @op

Hopefully but we were caught out by the mini-budget last time. We took a business loan at the worst point and in hindsight should have waited. I think Burnham a bright chap through so will have learnt not to spook the markets.

I'm rubbing my hands and looking forward to this wealth tax, it will be a lot lower than my council tax and people with expensive properties will have to pay a fair amount.
What's not to like ✌️😄👍

Me too.

Sorry, what? You’ve pulled out of a chain and you’re proud of yourself? Have a round of applause 👏👏👏.

Hopefully the first time buyers at the bottom are happy that your finances are “hedged”. 🙄

They will be if they don't have to pay stamp duty with a delay!

Whatever you say sweetheart.

Why don't you just tott back off to the cost of living treads, if money matters is not the place for you?

I pay the equivalent council tax for a Band F property in Kensington and Chelsea, but live in 3 bed social housing in the North. It seems mad that the council tax is still based on the average property price in 1991.

Oh I see, you think you’ve found the HENRYs and rich folk of MN here, rile ‘em eh. I wonder if it’s working.

I'm not anti the idea of the policy. We're just not committing until we know what the policy is and its financial impact.

An annual property tax to replace stamp duty and council tax, is a no-brainer.

At present elderly people who are stuck in properties too big for them are being put off downsizing because of stamp duty. It just freezes up the market.
Instead of paying a big lump sum when you sell, it makes far more sense to pay a small annual tax, and not take a big hit upon selling. This will massively encourage movement in the housing market.

What the hell is your council tax bill?! Am I missing something.

My flat is worth £400K, so I'd owe between £2K-4K a year. My council tax bill as a single person is £120 a month, so £1.24k a year.

I work in finance and I remember when everyone thought the tax free cash in pensions would be stopped by the government. So many clients took the TFC, even though they didn't need the funds. It never happened.

Again I'm not anti the policy. Just going to hold off to find the quantified impact. If stamp duty goes I will be delighted to have waited.

I imagine people who end up being the last ones ever to pay stamp duty would be gutted.

This 🙄🙄🙄

This is the difficulty with this policy- if it's intended to be a sudden change it will kill the housing market in the run up, as everyone will want to wait. So he'll need to act PDQ- not easy with such a substantial change- or else announce some sort of transitional provisions.

People have known that stamp duty is a terrible tax for years. The difficulty is how you get rid of it without a lot of unintended consequences.

The closer we get to a change the more people will realize it is stupid not wait. It's been put on the table as a serious suggestion of something that might happen so until it taken off the table the only people that would logically move are those who have to, for whatever reason.

I can't really see why anyone would disagree with that - unless they particularly like paying Stamp Duty.