Budget 2024

[Gerry557]

So tomorrow is the Budget and there is lots of speculation. Last Sunday they were doing the dance and Mr Hunt wouldnt comment on what was in the budget. Although often things were let loose before hand in some budgets.

Currently BBC News says 2p off National Insurance expected.

I dont think I will be a winner personally

Any other rabbits you want to see or things you think he should do?

[Lootman]

There is talk of Hunt pre-empting Labour's plan to tax non-doms as ordinary UK residents.

That would be entertaining although obviously it does not affect many people - possibly none here. And I suspect that the very wealthy can find ways around it e,g. by adjusting the number of days each year they are in the UK.

And that "British ISA" idea, for what that is worth.

[Tedx]

IHT scrappage has been widely touted.

[swill453]

IHT scrappage has been widely touted.

That was heavily touted last time round at the Autumn statement, but I haven't heard so much this time round.

Undoubtedly he has something to pull out of that hat though, given the 2p NI cut is already stated as fact.

Maybe he'll do something about income tax as well, either a penny off that or an increase in the personal allowance.

Scott.

[Adamski]

Taxing non-doms is a smart move. Labour's constantly talking about taxing non-doms as the solutions to our woes, and way of funding x,y,z. By taking this away where Labour going to get the money from to pay for its plans?

[Gerry557]

There is talk of Hunt pre-empting Labour's plan to tax non-doms as ordinary UK residents.

That would be entertaining although obviously it does not affect many people - possibly none here. And I suspect that the very wealthy can find ways around it e,g. by adjusting the number of days each year they are in the UK.

And that "British ISA" idea, for what that is worth.

I saw him discuss non doms on TV and that he wouldn't do gimmicks that resulted in less tax. I felt that there might be something around it done but not sure what. Up the limits to bring in a bit extra maybe.

I cant see IHT being scrapped as the optics wouldn't look good although it wouldn't bother me if they did scrap it. Hunt has little wiggle room than most Chancellors so Im not sure how much he can afford.

NI cuts help workers but the better off more than the lower ones and possibly companies a bit. Upping personal allowances would help the lower end more but not much for companies. The well off lose their personal allowance. I suppose tax cuts always do more for those who pay the most tax.

I wondered if stamp duty might get tweeked and the usual summat on fags n booze. Unless he can raise some different taxes I cant see all the above happening or very small cuts.

[BullDog]

Taxing non-doms is a smart move. Labour's constantly talking about taxing non-doms as the solutions to our woes, and way of funding x,y,z. By taking this away where Labour going to get the money from to pay for its plans?

The money has already been spent several times over, as has the VAT on school fees. Fact is, those measures are likely to raise minimal actual revenue. I do wish politicians wouldn't treat the entire population like idiots. And that's all the parties.

[Adamski]

The country is in a pickle, that much is clear. I think both Conservatives and Labour are deluding themselves into thinking growth can magically happen. What I think should happen is an admission of failure, and that we have to reduce expectations, and manage the decline. That however would be a surefire vote loser, so won't happen.

[Lootman]

[I cant see IHT being scrapped as the optics wouldn't look good although it wouldn't bother me if they did scrap it. Hunt has little wiggle room than most Chancellors so Im not sure how much he can afford..

Both main parties are terrified to be seen as doing anything for rich folks so it is a non-starter.

But how about a window until the end of the tax year where any gift is immediately exempt from IHT rather than the usual 7 year wait? It would cost nothing short term and might even boost CGT receipts as folks sell off shares to gift the cash.

[monabri]

Pffft!

[Alaric]

The refusal to index personal allowances is a ticking time bomb. The effect is to draw more and more people into a need to file tax returns and account for tax on savings ,investment income and pensions in payment. Also it makes ever incresaing numbers paying a marginal income tax of 40p in the pound rather tha 20p.

[Lootman]

The refusal to index personal allowances is a ticking time bomb. The effect is to draw more and more people into a need to file tax returns and account for tax on savings ,investment income and pensions in payment. Also it makes ever increasing numbers paying a marginal income tax of 40p in the pound rather than 20p.

It is a stealth tax increase worthy of that King of snide stealth taxes, Gordon Brown.

If nothing else changes then in 2025 my annual state pension on its own will exceed the standard personal allowance.

[the0ni0nking]

The refusal to index personal allowances is a ticking time bomb. The effect is to draw more and more people into a need to file tax returns and account for tax on savings ,investment income and pensions in payment. Also it makes ever incresaing numbers paying a marginal income tax of 40p in the pound rather tha 20p.

When SA is done predominantly online (and the degradation of service where it isn't done on line is likely an ever increasing issue) dragging more people into it would seem perfectly reasonable to me as it likely generates more tax without really increasing reqt for increased staff at HMRC. Remove any helpdesk and make it online chat/email.

My assessment of it is that nothing meaningful will change - what should happen should be fundamental reform of the tax system (universal credit was a [largely failed] attempt to simplify the benefit system).

But then our nauseating politicians on all side of the divide likely won't do anything of note.

The repeated protestations of those who claim "I've paid my stamp", "it's a stealth tax on me" are equally as nauseating and likely of ever decreasing volume in terms of electoral significance.

[Lootman]

The refusal to index personal allowances is a ticking time bomb. The effect is to draw more and more people into a need to file tax returns and account for tax on savings ,investment income and pensions in payment. Also it makes ever increasing numbers paying a marginal income tax of 40p in the pound rather tha 20p.

When SA is done predominantly online (and the degradation of service where it isn't done on line is likely an ever increasing issue) . . .

Poor/slow service from HMRC is only an issue if they owe you money. In my case I submit my SA return in paper form and I always owe them. So they can be as slow and incompetent offline as they like. I never talk to them online or offline.

[the0ni0nking]

I was going to post something similar on the tax rebate thread - ISTR it was better to leave the money with them as the legislation obligated them to pay an interest rate (8% over base?) that was superior to any savings account.

That gap has obviously narrowed recently but probably still exists!

[tjh290633]

So tomorrow is the Budget and there is lots of speculation. Last Sunday they were doing the dance and Mr Hunt wouldnt comment on what was in the budget. Although often things were let loose before hand in some budgets.

Currently BBC News says 2p off National Insurance expected.

I dont think I will be a winner personally

Any other rabbits you want to see or things you think he should do?

Yes, it would be far better were he to increase Personal Allowances. Many more less well off people would benefit by a large reduction in their tax paid. (As mentioned by others above).

TJH

[Nimrod103]

So tomorrow is the Budget and there is lots of speculation. Last Sunday they were doing the dance and Mr Hunt wouldnt comment on what was in the budget. Although often things were let loose before hand in some budgets.

Currently BBC News says 2p off National Insurance expected.

I dont think I will be a winner personally

Any other rabbits you want to see or things you think he should do?

Yes, it would be far better were he to increase Personal Allowances. Many more less well off people would benefit by a large reduction in their tax paid. (As mentioned by others above).

TJH

That would probably be inflationary, and Sunak's No1 intention at present is to get inflation down to 2% (IMHO) before going for an election.
I think it will be a NI reduction, but as I have written elsewhere, this is overly generous to those who get a better pension than their NI contributions would really gain if those contributions were invested in a private pension fund.

[GrahamPlatt]

Just me conspiracy theorising, but if Hunt believes (as he has previously stated) that taxing non-doms would just drive them away and result in further econoimic depression, could he be doing this to spite/spike the impending Labour government. “There’s no money left” to become “The money’s left”.

[MuddyBoots]

I was shocked when I first learned about the drop in CGT allowance over the last few years, down from £12.3k to £6k then to £3k next year. I'd like to see that increased back to say, equalling the IT allowance. Or (less likely) a combined allowance for both of say £25k.

Also, rather than fixed allowances another pipe dream is indexed allowances to stop fiscal drag. Say a fixed multiple of average incomes or RPI/CPI updated each April.

[the0ni0nking]

In my mind, CGT is a non-transactional tax i.e. if you don't do anything you don't pay it.

The issue is that to a certain extent, in an ideal world the CGT implications shouldn't be relevant to a decision to crystallise an investment or otherwise. In that regard, it's a blocker on wealth growth as it ties up assets (in CGT avoidance) when they would generate better returns elsewhere to both the investor and likely the govt longer term.