Budget ....
- Thread starter pvr
- Start date
According to the BBC:-
"Vehicle Excise Duty paid by owners of all but the most efficient new petrol cars to double in their first year, to encourage shift to electric vehicles".
So that won't affect me, just the usual annual increase for my MC as highlighted by flimper.
"Vehicle Excise Duty paid by owners of all but the most efficient new petrol cars to double in their first year, to encourage shift to electric vehicles".
So that won't affect me, just the usual annual increase for my MC as highlighted by flimper.
Id say for the most part many will be relieved when it could have been a whole lot worse , my concern is should the ladies convoluted plans not come to fruition ( & they rarely do ) then the next budget or the one after there won't be many alternatives left for her to take from the " non workers " :wink: then what ?
The vat on school fees is the one i really don't get , beside it being a massive backward step in terms of producing the future brains that will drive the countries growth how can they think its ok for private schools to add vat on fees but Universities won't have to ?
The vat on school fees is the one i really don't get , beside it being a massive backward step in terms of producing the future brains that will drive the countries growth how can they think its ok for private schools to add vat on fees but Universities won't have to ?
That one is a typical left-wing one. Their thinking will be "everybody who pay for private schools must be rich, so they deserve another 20% and can afford it". It just isn't like that anymore. Many people make HUGE financial sacrifices to send their kids to private schools (for many reasons).mr wilks said:
Or it could just be a 'communist' mentality thing to try and get rid of private schools. Angela Raynor pull the strings in the Labour party and she is a communist.
They don't take into account that every child going to private school is saving the Gov thousands by not going to state school. They should work out how much to educate a child in a state school and refund the parents of private school kids that amount.
I would bet the state school would still be more expensive, as they waste money like it is going out of fashion.
That's not a problem, as ANYONE can be a supply teacher these days. And I mean ANYONE.pvr said:
My daughter's friend took A level Business Studies. The school is a 'selective' grammar school, so not some inner city doss house. For the whole of year 13 (last year before exams), she had no teacher. AT ALL. The kids had no supply teachers so had to teach themselves for the last year up to their A levels. She did get an A*, so good on her, but that was despite the school not because of.
The teacher was on extended sick leave (not a physical complaint BTW) for a whole year. He was never sacked, or made redundant, and could come back whenever he decided, or not. I don't know what the pay situation was but I would put money on him not just getting SSP.
And don't get me started on the 'young offenders institute' that passes for a primary school my wife works in.
Pondrew said:
Firstly, IHT is a voluntary tax. It is not too difficult to avoid it if you can be bothered barring a sudden and serious illness, and you can insure against that. Secondly, for those people with big pots that 40% IHT is less than the 66% they added to every £60 you put in when they topped it up to £100.
Wind back 10 years. "Crystallised" pots (ie those used to buy an annuity) were lost on death, unused pots were taxed at 55%. Pension Freedom allowed people flexibility, but abolition on the 55% Death Tax created a loophole for those wealthy enough not to need their Pension and able to use it as an IHT planning tool rather than the original intention of the tax-rebated wrapper. This change has merely re-closed that loophole.
As a lower rate taxpayer I never saw the point in putting surplus into Pensions, I used unsheltered investments and ISAs (one is taxed on the way in, one on the way out, and when you died your pension was gone). However post Pension Freedom day we did start to put some money into SIPPs for IHT mitigation but fully expecting the rules to change before we died. It is money we don't need, so now we just need to unwind them and give it away and survive another 7 years, or draw it as income/buy an annuity and give it away IHT exempt as excess income.
For me the biggest kicker is the CGT rise, although not as big a kicker as losing the £12kpa tax free I could take before the left wing money grabbing Tories slashed my allowance. I did realise gains last week up to the 40% tax band though just in case
And Education should ALWAYS be VAT free, no matter where you get it from.
mmm-five said:
Kind of, I was using "man maths" to demonstrate a point
Assuming the amounts are above the IHT threshold.....
Had you put £60 into an ISA, the govt would have taken £24 so your beneficiaries get £36.
Had you put £60 into a SIPP as a higher rate taxpayer, the Govt adds £40 then takes it in IHT and gives your beneficiaries the £60 back, although they are also taxed on this so probably get £36 or £45 depending upon their marginal tax rate.
Had you put £60 into a SIPP as a lower rate taxpayer then the govt takes 40% of the £75, and the beneficiaries pay tax on the remaining £45 so get either £36 or £27.
So unless you pay lower rate tax and your beneficiaries pay higher rate the SIPP is still 'not negative'. However any investment growth is untaxed, which is the big win over time.
mmm-five said:I've got no dependents, so I'm going out of this world with as much as I came into it with
We're hoping to leave our kids with loads a money. But it's their problem to sort out any taxes, when we are gone, so not too worried about inheritance tax myself. Just as long as assets are earning income, the asset value does not matter so much. :wink:
Got to say the budget hasn't cost us a penny.
But yes the kids will get less inheritance should we die in the next 5 years, compared to last week.More worried about inflation and the economy, after a typical borrow and spend budget like that one. :thumbsdown:
buzyg said:
Well, not in direct taxation but every coffee / food place / any other place where they pay the minimum wage, that is going to go up in price - hence inflation yep
Any other business has a defined profit margin and they will just add it to the consumer side or the future staff salary increase side.
buzyg said:Got to say the budget hasn't cost us a penny.
Nothing has changed AFAIK unless you own a farm or a bunch of AIM shares.
However if you were hoping to leave your SIPP to them, I'd be wary of any cuppas they make you for the next 3 years or until your 74th birthday
CGT is a minefield, but the simple way of avoiding it is to reduce your assets base to the Allowances by gifting (or Trusts if there are significant assets). £1m is still quite a chunk to live on into your dotage, and that's without one of those dubious products like Lifetime Equity Release mortgages (I can see them being a big mis-selling scandal in a few years) where you remortgage, give the kids the cash, then dwindle your assets on the repayments. Annuities are another option, take one out and gift the "surplus income" until you go into a care home. Life Insurance Policies in Trust to your beneficiaries, assuming Trust tax isn't tightened up on.
If, like us, you have no children it is not so simple as the Residence NRB isn't available so we might have to be creative in a decade or so in the (IMO unlikely) event that the rules are still the same.
