The Lemon Fool

It's death by fiscal drag as the tax band freezes are extended from 5yrs out to 7yrs.

In real terms it is likely that this will have the cumulative effect of lowering the taxband thresholds by 30-40% by the time the freeze comes out.

It was a trick that Gordon Brown pulled for a decade to draw more people into higher tax bands. Sunak has nothing different in his playbook - he's just a centrist with a progressive tax policy.

Ordinary and middle income earners are not so slowly being taxed to death - its utterly disgusting.

The CGT allowances aren't being frozen, they are being halved, and halved again. £3000 is peanuts in a time of high inflation

JohnB wrote:The CGT allowances aren't being frozen, they are being halved, and halved again. £3000 is peanuts in a time of high inflation

And the dividend allowance for those holding dividend paying shares outside of a tax wrapper is being practically abolished - falling from £2000 to £1000 and then £500.

Snorvey wrote:IIR correctly there was a big jump in c.2010 as part of the Libdem coalition demands. Wasn't it something like £6k increasing by inflation?

PS there is an Autumn Statement thread

On the current affairs and news board - since that allows more political comment

viewtopic.php?p=547300#p547300

ursaminortaur wrote:

JohnB wrote:The CGT allowances aren't being frozen, they are being halved, and halved again. £3000 is peanuts in a time of high inflation

And the dividend allowance for those holding dividend paying shares outside of a tax wrapper is being practically abolished - falling from £2000 to £1000 and then £500.

That will affect me, but to be fair only people who should be affected are those who fill their ISA and SIPP allowances each year and still have spare cash (aka the realtively wealthy) and the recently inherited, like me who need a few years to transfer it to sheltered wrappers.

Paul

ursaminortaur wrote:

JohnB wrote:The CGT allowances aren't being frozen, they are being halved, and halved again. £3000 is peanuts in a time of high inflation

And the dividend allowance for those holding dividend paying shares outside of a tax wrapper is being practically abolished - falling from £2000 to £1000 and then £500.

I've felt the writing has been on the wall for scrapping the dividend allowance since it was first applied. I've just got below the £2k limit last tax year and a bit of capital gain harvesting and targetted selling and I can be below £1k/£500 over a couple of years. I've never been bothered by capital gains previously but £3k might impact me if I'm not careful and of course forced disposals might be unavoidable.

JohnB wrote:The CGT allowances aren't being frozen, they are being halved, and halved again. £3000 is peanuts in a time of high inflation

It's just a progressive way of eliminating CGT allowances. As are static nominal income tax etc. allowances actual cuts in real terms.

RPI is running at 14%, anyone with RPI spending/inflation who only receives a 4% pay rise is in effect also seeing their 5 weeks paid holiday entitlement being cut (fund your own holiday period wages).

Clever/sly! If they'd come out saying that allowances and holiday entitlements etc. were all being removed there'd be uproar. As-is people will just shrug.

vand wrote:It's death by fiscal drag as the tax band freezes are extended from 5yrs out to 7yrs.

In real terms it is likely that this will have the cumulative effect of lowering the taxband thresholds by 30-40% by the time the freeze comes out.

It was a trick that Gordon Brown pulled for a decade to draw more people into higher tax bands. Sunak has nothing different in his playbook - he's just a centrist with a progressive tax policy.

Ordinary and middle income earners are not so slowly being taxed to death - its utterly disgusting.

Easy answer is migrate to Africa and claim asylum. I assume they have similar conditions as per the UK where they'll meet your boat halfway across, bring you ashore and put you up in a hotel before sorting out all of the freebies you'll get (free healthcare, some regular cash for a few years whilst you're not permitted to work etc.).