The Lemon Fool

The news is currently full of the mini budget and another U turn of corporation tax.

So more tax on firms ahead so less profit, possibly less investment. There might be an impact on jobs, Royal mail currently struggling comes to mind. It's going to struggle more.

So when will the adverse effects be felt by share prices? Next year when it kicks in or 6 months after that when reporting has been released.

Still if armageddon is the reference line, prices might be higher.

Gerry557 wrote:
So when will the adverse effects be felt by share prices? Next year when it kicks in or 6 months after that when reporting has been released.

Still if armageddon is the reference line, prices might be higher.

If you believe the markets are truly efficient - then something like this is incorporated in the price as soon as it's announced.

And just generally - the markets will probably consider it a fair trade in return for the sense of some confidence and stability at the Treasury. If the higher tax means lower interest rates for the economy, then it could be considered a net positive.

Gerry557 wrote:The news is currently full of the mini budget and another U turn of corporation tax.

So more tax on firms ahead so less profit, possibly less investment. There might be an impact on jobs, Royal mail currently struggling comes to mind. It's going to struggle more.

So when will the adverse effects be felt by share prices? Next year when it kicks in or 6 months after that when reporting has been released.

Still if armageddon is the reference line, prices might be higher.

Well, since Royal Mail stated today they would make a £350m (or higher) operating loss for this year, they needn't worry about about paying corporation tax just yet

simoan wrote:

Gerry557 wrote:The news is currently full of the mini budget and another U turn of corporation tax.

So more tax on firms ahead so less profit, possibly less investment. There might be an impact on jobs, Royal mail currently struggling comes to mind. It's going to struggle more.

So when will the adverse effects be felt by share prices? Next year when it kicks in or 6 months after that when reporting has been released.

Still if armageddon is the reference line, prices might be higher.

Well, since Royal Mail stated today they would make a £350m (or higher) operating loss for this year, they needn't worry about about paying corporation tax just yet

Wow that bad. I've not been following them since I sold shortly after buying them. After all, they were sold off on the cheap I remember some MPs saying.

Looks like my reasons for selling have surfaced. I bought mainly for the dividend, has that gone too now. At least its one thing off the tax payer burden.

Hallucigenia wrote:

Gerry557 wrote:
So when will the adverse effects be felt by share prices? Next year when it kicks in or 6 months after that when reporting has been released.

Still if armageddon is the reference line, prices might be higher.

If you believe the markets are truly efficient - then something like this is incorporated in the price as soon as it's announced.

And just generally - the markets will probably consider it a fair trade in return for the sense of some confidence and stability at the Treasury. If the higher tax means lower interest rates for the economy, then it could be considered a net positive.

Well interest were on the rise well before the mini budget and the fact they were only raised 0.5 and not 0.75 like the US was seen as quite a bit of a negative. I suppose you do have to make profits to be paying corporation taxes so more likely the money will flow into banks a bit more instead of filling the coffers of the Treasury as much.

6%+ rates expected so looking forward to sub 5s soon.