“When will Labour’s first Budget be – and when will tax changes come into effect?”

Jul 5, 2024 | Tax

‘Should we be panicking? What taxes will go up and when, because Labour always put up taxes, don’t they?’ What we do know is that they have pledged that they ‘will not raise taxes on working people’, which means the holy trinity of income tax, NI and VAT. So what are the targets likely to be? CGT? Yes, it may well go up to align with income tax rates, that would make sense. Pensions? High rate tax relief could go, but that would mean a pay cut for many a doctor, as would further tinkering with the lifetime allowance. IHT? Well, yes, but is it worth it? It doesn’t raise that much in the scheme of things and is very unpopular. I will come back to my usual mantra, that you can only plan on the basis of what you know, and if you try to second guess stuff that might happen, you’re as likely to lose as to win. Just like trying to second-guess stock markets; or even the winner of Wimbledon.  

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“Tories pledge ‘triple lock plus’ tax cut for pensioners”

“Tories pledge ‘triple lock plus’ tax cut for pensioners”

If the State Pension does keep rising with the Triple-Locked highest measure of inflation, and the income tax allowance remains frozen, it might indeed not be long before the pension is more than the allowance and so becomes taxable. For those with other pensions, it would mean a change of tax code, and more tax taken from one or more of those others. But many, and there are many, whose

“Business Relief in IHT planning set to become ‘even more important'”

“Business Relief in IHT planning set to become ‘even more important'”

For most who might leave an Inheritance Tax bill to pay when they depart, there aren’t that many ways to get around it. For most leaving their money to kids with house making up most of the value, it boils down to giving away the assets you don’t live in and hanging on for seven years, giving some to charity or taking it on the chin and setting up life insurance to provide the funds.