Budget 2012

[anonymous-user]

BoRED S2upid said:

So it looks like the lower rate of Income Tax will rise to 9k making us all better off, but by how much? I intend to spend spend spend.

They will of course lower the starting point for the (Is it the middle rate of tax now?) tax rate of 40% like they did last time. Literally giving with one hand and taking away with the other!!

[Pesty]

markh1973 said:

Probably only everyone who pays at 20% will be better off as he will probably reduce the 40% threshold again - pulling more people into that band.

really think they would do that?

so people in the middle will be hammered again.

[markh1973]

Pesty said:

markh1973 said:

Probably only everyone who pays at 20% will be better off as he will probably reduce the 40% threshold again - pulling more people into that band.

really think they would do that?

so people in the middle will be hammered again.

That is what he did last time so yes I do believe he would do it again

[S10 GTA]

VED increase?

[tomw2000]

anonymous said:

[redacted]

Or one uses skilful accountants to mitigate one's exposure to the increased SDLT?

[markh1973]

Newc said:

- income tax top rate down to 45%
- starter rate band to 9k at least, 10k if they can manage it
- poss combining of NI and income tax in a way that disguises a net lift in lower band rates
- new top rate stamp duty band of 7% at 2m
- tax reliefs for pensions, VCTs etc, restricted to 30%
- corp tax 1% off
- VED up 5% at lower bands, 10% at top bands
- non-dom charge to 40k
- look through legislation for offshore SPVs owning an asset registered at land registry
- fuel duty no change (but no reduction either)
- poss CGT reduction but only if they can implement a way to restrict income being channeled into CGT
- inflationish-plus increases in cigs, alcohol, slight tick up in air tax, insurance tax
- no change in capital allowances
- no change VAT
- some special one off olympics nonsense; free Tube travel to Stratford, or something equally inane

Legislation already in last year's Finance Act for dropping CT to 25% from 1 April and already announced that rate will drop to 24% next year and 23% year after.

[elster]

Pesty said:

markh1973 said:

Probably only everyone who pays at 20% will be better off as he will probably reduce the 40% threshold again - pulling more people into that band.

really think they would do that?

so people in the middle will be hammered again.

I think most of the briefing is pointing that tax cuts are going to be funded by spending cuts. This seems to be the only point that everyone agrees on.

Lib Dem need middle England to survive, so I cant see them doing that.

[anonymous-user]

anonymous said:

[redacted]

I don't think it would make much difference, you are looking at an extra 40K stamp duty on a £2M property (140K as opposed to 100K). It will probably end up being split between the buyer and seller each taking a 20K hit but it's not going to stop properties moving at that level. The claim that it will affect FTB's is frankly laughable.

For the record I don't agree with a raise or in fact the way Stamp duty works in general it should be a properly graded tax, not one that introduces artificial house price barriers, like the one at £250K

[pilchardthecat]

They will make the child benefit cut even less fair, by raising the single-earner threshold slightly, so a smaller number of people end up subsidising a larger number of wealthier families.

[GT03ROB]

BoRED S2upid said:

So it looks like the lower rate of Income Tax will rise to 9k making us all better off, but by how much? I intend to spend spend spend.

Ergh, no. Not all of us.

[scotal]

tomw2000 said:

Or one uses skilful accountants to mitigate one's exposure to the increased SDLT?

How does one do that?

[markh1973]

scotal said:

tomw2000 said:

Or one uses skilful accountants to mitigate one's exposure to the increased SDLT?

How does one do that?

By paying large fees for something that may or may not work but will probably involve large elements of artificiality

[tomw2000]

anonymous said:

[redacted]

Such SDLT mitigation structures do still exist (probably not so much after today...) for residential properties. I think bringing in a 7% band for homes at £2mil and above might encourage development of more loophole exploitation - if the demand is there.

There are and have always been ways to mitigate exposure to SDLT for individuals not wanting to use Companies to shelter residential property transactions. And I'm not referring the the "pay me £X for the house and £x for the curtains" mania. Even if often the result is the SDLT has to be paid anyway.....for some people delaying the payment of sometimes many 10s of 1000s of £s in SDLT is a service they're more than happy to pay for (presumably because they can do something else with the money in the meantime).

But again these anomalies in the legislation are being slowly closed down.

[anonymous-user]

anonymous said:

[redacted]

Would I be happy working until September\October just to pay tax, of course not, but it's not as though if this new rate increase doesn't go through it will magically be only be March or even June, using your analogy it's a couple of days of extra. People will move if they want it enough, and the trickle down affect through the chain to FTB will be minimal.

If they want to do something to make life easier for FTB's without costing the government a penny, they should stop the tax relief on Mortgage interest for Buy to Let investors, they wont of course as they don't want the house price adjustment this policy would cause.

[AJS-]

Fiddling with taxes are a sideshow, it's huge destructive cuts that are needed. Things like child benefit and winter heating allowance withdrawn, subsidies abolished and spending programmes scrapped. Seems like he's meandering slowly along the right path, but this would be a good midterm opportunity to really swing the axe at some of the big spenders so that people can see the benefits by election time.

[Soovy]

I am hoping for

1. £10k threshold on income tax (for Mum)
2. 50p rate scrapped
3. MASSIVE rise in fag duty
4. £400 a year road tax for caravans
5. All overseas aid to cease until we've paid our debts off

[AJS-]

Soovy said:

I am hoping for

1. £10k threshold on income tax (for Mum)
2. 50p rate scrapped
3. MASSIVE rise in fag duty
4. £400 a year road tax for caravans
5. All overseas aid to cease until we've paid our debts off

Cigarette duty is your best chance.

The £10,000 tax threshold would be an impressive move, but I doubt they'll do it as they simply can't afford it.

[cerbfan]

Any idea what time the actual budget speach is due to start? I want to try and organise a meeting this afternoon so that it does not clash.

[pilchardthecat]

Soovy said:

4. £400 a year road tax for caravans

Oooh, I like that.

[Sonic]

markh1973 said:

Pesty said:

markh1973 said:

Probably only everyone who pays at 20% will be better off as he will probably reduce the 40% threshold again - pulling more people into that band.

really think they would do that?

so people in the middle will be hammered again.

That is what he did last time so yes I do believe he would do it again

This move would sicken me... the bloody band should be going up with inflation, not going down year-on-year