Changes to cgt Autumn statement
Discussion
Hunt has kicked investors/savers well and truly in the balls today, reducing cgt allowance from 12k to 6k next year then 3k in 2024.
How are those who use investment drawdown as part of their retirement income going to combat it?
Its put my plan going forward post 2028 into a bit of a tailspin tbh...
How are those who use investment drawdown as part of their retirement income going to combat it?
Its put my plan going forward post 2028 into a bit of a tailspin tbh...
We've all gotta pay somehow for the financial state the country is in post Brexit, post Covid. Others, many of whom may not have savings etc, are moaning too. In fact. everyone will be moaning when they work out the full personal impact.
I think it would be the same whatever party was governing right now.
R.
I think it would be the same whatever party was governing right now.
R.
dingg said:
Hunt has kicked investors/savers well and truly in the balls today, reducing cgt allowance from 12k to 6k next year then 3k in 2024.
Ain't that the truth. He's made it even more undesirable to be successful in the UK. £12k to £6k was bad enough but chopping it back to £3k in 2024 is a complete kick in the teeth. How are people going to make it work when drawdown is a part of many people's retirement savings strategies is a good question. I don't know what the answer is. I'm probably far enough off retirement for me to be able to change tack a little but that's not much help for you dingg.
I guess it's probably inevitable that this thread will get political at some point but the fact that this comes from a Tory chancellor is shameful. I guess we should be grateful that he hasn't implemented a full on wealth tax, but that may well be just around the corner.
Eric Mc said:
zbc said:
Not trying to be smug but just sold a house and am calculating CGT but I assume these only impact people who make gains in the 23/24 tax year? And beyond of course....
Yes - the changes start coming in from 6 April 2023.dingg said:
Hunt has kicked investors/savers well and truly in the balls today, reducing cgt allowance from 12k to 6k next year then 3k in 2024.
How are those who use investment drawdown as part of their retirement income going to combat it?
Its put my plan going forward post 2028 into a bit of a tailspin tbh...
If your pension investment is in a SIPP then all is OK...SIPPs are not liable for tax on dividends nor tax on capital gains as I understand things. You are liable for IT on the income that you draw down.How are those who use investment drawdown as part of their retirement income going to combat it?
Its put my plan going forward post 2028 into a bit of a tailspin tbh...
R.
PistonHead007 said:
It's an increase in CGT of £930 when the allowance is changed from £12,300 to £3,000 assuming basic rate tax on investments. If that's enough to put your plans in a spin then your plans never had sufficient resilience in the first place...
Very helpful comment. Thanks. 2Btoo said:
PistonHead007 said:
It's an increase in CGT of £930 when the allowance is changed from £12,300 to £3,000 assuming basic rate tax on investments. If that's enough to put your plans in a spin then your plans never had sufficient resilience in the first place...
Very helpful comment. Thanks. With forward planning you should be able to get a lot wrapped up in an ISA. If there's more than will fit you're likely in a decent enough position to suck up the extra tax.
Using capital gains to provide an 'income' is not reliable. Any gains could easily fluctuate by more than £930. That was my point.
Using capital gains to provide an 'income' is not reliable. Any gains could easily fluctuate by more than £930. That was my point.
2Btoo said:
Ain't that the truth. He's made it even more undesirable to be successful in the UK. £12k to £6k was bad enough but chopping it back to £3k in 2024 is a complete kick in the teeth.
How are people going to make it work when drawdown is a part of many people's retirement savings strategies is a good question. I don't know what the answer is. I'm probably far enough off retirement for me to be able to change tack a little but that's not much help for you dingg.
I guess it's probably inevitable that this thread will get political at some point but the fact that this comes from a Tory chancellor is shameful. I guess we should be grateful that he hasn't implemented a full on wealth tax, but that may well be just around the corner.
Agreed with your sentiment.How are people going to make it work when drawdown is a part of many people's retirement savings strategies is a good question. I don't know what the answer is. I'm probably far enough off retirement for me to be able to change tack a little but that's not much help for you dingg.
I guess it's probably inevitable that this thread will get political at some point but the fact that this comes from a Tory chancellor is shameful. I guess we should be grateful that he hasn't implemented a full on wealth tax, but that may well be just around the corner.
Additionally, reducing growth doesn't generate nominal tax receipts; this just death spirals and until someone is brave enough (lol, as if) to reverse it, and even then it takes ~7years for full effect based on empirical evidence.
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