Autumn Budget 2024
Discussion
It looks like we are in for significant tax rises following the Autumn budget. The one that concerns me the most is capital gains tax being raised to the same rate as income tax. I'm planning on selling some investments before the end of this financial year - if labour do increase CGT rates, is it more likely that this will be effective from April 2025 rather than immediately?
George Osborne made a CGT rise that hit at midnight the same day.
It's a discretionary tax and many of the people who pay it are mobile, so it's the least likely rise to give people any time to work around.
If it does align with income tax then I'm probably off. I have a large one time bill and that's too much to hand over.
It's a discretionary tax and many of the people who pay it are mobile, so it's the least likely rise to give people any time to work around.
If it does align with income tax then I'm probably off. I have a large one time bill and that's too much to hand over.
p_k_n said:
It looks like we are in for significant tax rises following the Autumn budget. The one that concerns me the most is capital gains tax being raised to the same rate as income tax. I'm planning on selling some investments before the end of this financial year - if labour do increase CGT rates, is it more likely that this will be effective from April 2025 rather than immediately?
I think it would have to be immediate, or it would cause a run.It's a tough decision though - do you sell up when you didn't really want to before the Budget and take a small but voluntary punch on the nose (for taking a successful risk with your already-taxed income) or sit tight and end up paying more?
Am I correct that you could sell a portfolio, take the CGT hit, then reinvest identically after 30 days with a clean sheet? (having paid the penalty for being sensible with money)
Of course in the interests of fairness, to counterbalance CGT they should introduce CLB (capital loss benefit)...
Simpo Two said:
I think it would have to be immediate, or it would cause a run.
It's a tough decision though - do you sell up when you didn't really want to before the Budget and take a small but voluntary punch on the nose (for taking a successful risk with your already-taxed income) or sit tight and end up paying more?
Am I correct that you could sell a portfolio, take the CGT hit, then reinvest identically after 30 days with a clean sheet? (having paid the penalty for being sensible with money)
Of course in the interests of fairness, to counterbalance CGT they should introduce CLB (capital loss benefit)...
I agree, I expect a CGT rate rise and for it to be immediate.It's a tough decision though - do you sell up when you didn't really want to before the Budget and take a small but voluntary punch on the nose (for taking a successful risk with your already-taxed income) or sit tight and end up paying more?
Am I correct that you could sell a portfolio, take the CGT hit, then reinvest identically after 30 days with a clean sheet? (having paid the penalty for being sensible with money)
Of course in the interests of fairness, to counterbalance CGT they should introduce CLB (capital loss benefit)...
Yes you could sell and repurchase after the 30 days. Plenty of people already do this to use (diminishing) CGT allowances or future changes to tax bands.
ferret50 said:
Her proposal to limit Winter Fuel allowance is particularly harsh bearing in mind that the energy price cap is expected to rise 10% in October.
10% up on the current rate (July-Sept '24). Which would, I believe, still be lower than the same period last year (Oct - Jan '23).FriedMarsBar said:
Off to where, Portugal?
One of the British ones. Isle of Man or Guernsey. I don't like being hot.
Spent plenty of time on them before and enjoy being there.
Small problem will be there might be a tsunami of other tax dodgers piling in.
If I had a regular dribble of gains then I'd swallow it and wouldn't bother, but there are 1-2 major sales to realise that would make all the upheval worthwhile.
Dunclane said:
What's everyone's thoughts on CGT potentially being applied to main residences?
Surely that would be the kiss of death to a 2nd term?
Can’t see that happening. Surely that would be the kiss of death to a 2nd term?
Would need to factor in maintenance / renovation / additional building costs since first occupation and then the psychological impact on those selling would be difficult to assess impact on housing market.
Plenty of other things they can and will do to potentially impact the chances of a second term anyway but that also assumes Conservatives can actually be a credible alternative by then.
Dunclane said:
What's everyone's thoughts on CGT potentially being applied to main residences?
Surely that would be the kiss of death to a 2nd term?
They won't do that. They need liquidity and flexibility in the housing market for people to move as the net new housing stock* becomes available. Not every first time buyer will buy a new build.Surely that would be the kiss of death to a 2nd term?
- Slightly tongue in cheek. They'll do well to build 100k in their first year let alone 300k+.
Edited by skyebear on Thursday 1st August 00:36
Rollin said:
I reckon entrepreneurs relief (BADR) will go, likely costing me several hundred grand. Plus a few more if rates are aligned with income tax. 
The Tories already killed off most of the financial benefits of establishing a business and employing people, so I guess Labour may as well seal the coffin.p_k_n said:
It looks like we are in for significant tax rises following the Autumn budget. The one that concerns me the most is capital gains tax being raised to the same rate as income tax. I'm planning on selling some investments before the end of this financial year - if labour do increase CGT rates, is it more likely that this will be effective from April 2025 rather than immediately?
Pretty much anything major that they do will be immediate and/or incorporate anti-forestalling provisions to prevent people taking advantage of any window between the announcement and the specifics being properly implemented. Wouldn’t be at all surprised to see a lot become less generous/more punitive for middle Britain and/or means-tested.
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