Labour voters….

[CurlewKate]

…… what do we do now?

@footpath - OK, I should not have used the word “everyone”, but on the whole, rich people have financial advisors and lawyers and wills and planning takes place, unless someone dies young or has no family, and even then, quite often, if they have significant assets they will plan for it to go to a cause they believe in, rather than HMRC.

Get more people paying tax at lower rates and make it harder to avoid by removing/reducing allowances/thresholds etc.

You also have to reverse the government/political narrative of the past few decades. It's governments who have increased the IHT thresholds and brought in new zero rate/exempt amounts. It's governments who've encouraged not paying tax by introducing incentives like ISAs and pension contributions and heavily marketed the "tax breaks", etc. It's governments who've signalled that paying lower taxes, using more exemptions/allowances etc is a good thing!

It's going to be a hell of change of direction for any government to start telling people that they should be paying more tax, after a few decades of successive governments "selling" lower taxes!!

@taxguru my parents are very left & have not done a thing to avoid it & wont be.
In-laws are a bit more conservative & sold some property some years ago to give DH a significant house deposit & are careful with gifting money. Neither set wants to downsize or avoid care costs.

It's going to be a hell of change of direction for any government to start telling people that they should be paying more tax, after a few decades of successive governments "selling" lower taxes!!

Isn't that Reforms policy? lower taxes

The IHT threshold hasn’t gone up for 16 years @taxguru. It’s not governments encouraging people to reduce their hours and stuff their pensions to avoid paying tax. It’s human greed and people who are never satisfied that they have enough.

ITS NOT £1m if you’re single/unmarried and don’t own a house ITS ANTHING OVER £375k which gets taxed at 40%. Criminal!

SIPs are now included in IHT so those dying younger than expected will be paying more. Pretty much all City professionals in London with a house will be caught and are busy planning away.

@Didyousaysomethingdarling did you actually read my post? Maybe I needed to use caps & bold at the beginning 😆

I know. I just genuinely don’t understand why people care about tax deductions after they’re dead. And the pension issue is the height of greed when the money was tax free on the way in. I really wish HMRC was as inventive with plugging loopholes as tax accountants are at exploiting them.

Yes, I did read it and I agree with you regarding it being better not to have such a steep immediate 40%.

I just wanted readers to know 40% kicks in at £375, it frustrates me people keep talking about £1M and think it will only affect the few. Now Pensions are subject to inheritance tax, most people will be paying it.

SORRY I shouted! 😬

@blossomtoes the planning that is happening seems to largely be earlier retirement like we saw with NHS consultants. Once the house is paid off and you have a large pension pot to comfortably live off, there is no incentive to keep working. Many continued precisely because they were doing it for the next generation and bumping the tax free pot up for them.

I don’t actually have an issue with retiring early and spending the money. That is, after all, what it’s supposed to be for.

It stifles productivity though if people stop working due to the tax system. When they would otherwise have worked for longer. 40% is too much on a SIPP. People are only just waking up to this significant change and some will be altering their behaviour.

It’s hardly going to have much effect on productivity, the numbers will be relatively small. Funny how 40% on a SIPP is too much on the way out but absolutely fine on the way in.

It is a bit like Plan 5 student loan repayable over 40 years, into significant interest rates from Day 1. It is no longer just the well earning students who will pay it back, it captures most students now and so the backlash against going to uni and the demands for value for money have started. And the whole sector is in turmoil. These things take some time to sink in.

i have older colleagues who have maxed their public sector pension pots but still chose to work. Maybe it's good to free up the jobs?

I have been saving for dcs uni since birth as I don't want them to have that debt

And getting smaller thanks to Labour and the millionaire exodus.

We are still no 3 for the number of millionaires after the US & China

So Starmer gave a certain “infamous” speech but a week later he enters into a deal with the EU?

I agree. The chairman of the migration advisory committee has estimated that Labour's plans would result in a cut of 60,000 to 70,000 net migration per year - on top of measures introduced by Sunak's government. We also know that the EU have previously asked for 70,000 youth mobility visas per year.
*
Social care visas were discussed on Question Time last week. Labour's Peter Kyle (when challenged by Sonia Sodha) was talking about up-skilling and valuing care work, raising aspirations and telling Sonia Sodha how much better it would be for her disabled friend to have continuity of care from UK workers rather than a constant churn of foreign workers - but it could be that the government are planning to fill social care vacancies with an EU youth mobility scheme.

I think the issue is the proportion of people who contribute the most tax is decreasing rapidly.

Last year alone, London lost 11,300 dollar millionaires (only surpassed by Moscow)

The top 1% pay 30% of all tax

The top 0.01% (4000 people) pay 6% of all tax (£17.billion/year or £4 million each)

If one leaves, we need 1,300 average tax payers to fill the hole.

The main reason is the retrospective nature of RRs trust reforms. This affects non doms who are fleeing as the UK is seen as anti wealth. RR assumed these reforms would raise money. In fact, it is likely to cost us billions and those tax payers are unlikely go come back.

Well done Labour. Idealogical fiddling while Rome burns (although it doesn't, because all the millionaires are relocating there!)

@Jackrussellsaremad

I think the issue is the proportion of people who contribute the most tax is decreasing rapidly.
Last year alone, London lost 11,300 dollar millionaires (only surpassed by Moscow)

This time next year, there will be one more - myself.

Paying tax is not my issue, but it’s what the government chooses to spend it on. Silly projects like HS2. Billions on track and trace app.

5 billion per year for asylum and hotels for people arriving from outside the UK whilst there are UK citizens on the streets.

Last year alone, London lost 11,300 dollar millionaires (only surpassed by Moscow)

Which is less than 0.5%? I just don't think it's a huge deal.

The top 1% pay 30% of all tax. If one leaves, we need 1,300 average tax payers to fill the hole.

It depends on who leaves tbh as while they do pay a lot of tax, the burden isn't the same for all millionaires.

@GlobeTrotter2000 where are you going to?

Why would you stay in Starmers Britain if you could leave?