Starmer's vision quest

[AuroraSaab]

The Isa thing might backfire, a little at least. People who are risk averse are not going to take their money out of a safe Isa account and put it in volatile stocks and shares. Many will remember when tech stocks and shares Isas tanked and people lost money. They'll put it in other accounts and pay the tax if necessary.

Building societies rely on the Isa money to fund loans and mortgages so there might be a knock on effect there too.

 

[BoldonLad]

The Isa thing might backfire, a little at least. People who are risk averse are not going to take their money out of a safe Isa account and put it in volatile stocks and shares. Many will remember when tech stocks and shares Isas tanked and people lost money. They'll put it in other accounts and pay the tax if necessary.

Building societies rely on the Isa money to fund loans and mortgages so there might be a knock on effect there too.

Don't Standard Rate Tax payers have a "Saving Allowance" which allows £1,000 of interest to be earned per year, before Income Tax is levied. https://www.gov.uk/apply-tax-free-interest-on-savings

At present typical interest rates, this means interest on saving of up to approximately £20,000 is tax free.

 

[Psamathe]

People who are risk averse are not going to take their money out of a safe Isa account and put it in volatile stocks and shares.

I agree that most people will not be choosing between cash vs stocks & shares ISAs and those wanting cash ISAs won't be pressured into switching to stocks & shares.

But my understanding is that what's being considered is reducing the annual investment allowance so people wouldn't have to withdraw existing cash ISAs funds.

Also, with all these house building targets the Gov. keep on about cash savings (and in part cash ISAs) will be crucial to the banks having funds to loan for mortgages.

Ian

 

[AuroraSaab]

But my understanding is that what's being considered is reducing the annual investment allowance so people wouldn't have to withdraw existing cash ISAs funds.

Yes, I think you're correct, I misread it, it will apply to new allowances. It was only £4k a year to begin with so £20k was a big increase, but I can't really see it generating lots of investment in stocks and shares. I think many people who put money into Isas aren't in position to lose any of the capital.

As you say, if it reduces the amount available for home loans it's a bit counterproductive. Banks will have to find the money somewhere or be more restrictive on who/how much they lend.

 

[Psamathe]

As you say, if it reduces the amount available for home loans it's a bit counterproductive. Banks will have to find the money somewhere or be more restrictive on who/how much they lend.

My understanding is banks can attract more savings by increasing the interest rates. Which of corse means they have to increase interest rates on loans ...

I agree it would be counterproductive but from what I've seen (which may be out of date) it's more vested interests lobbying at the moment and is "being considered" (which is neither positive nor negative and a non-committal answer to lobbyists from companies the Gov. wants to "keep on side").

Ian

 

[Psamathe]

Re: Funding Increased Defence Spending
Further cutting spending beyond that already looking likely would be a disaster (in many ways). But to increase defence spending we need more money.

Struck me back at the last budget how many fund raising opportunities to raise money that were "missed" eg taxing online gambling operations (expected £1bn), raise CGT to same level as income tax (it's currently somewhat lower; expected £14bn), reduce hydrocarbon subsidies (helping address climate change), tax private jet use, lower the inheritance tax thresholds. Even just treat "carried interest" as liable for income tax rather than CGT - is there anybody that thinks it shouldn't be income taxed?, that would give £½bn.

My impression lots of places to raise tax from but many were surprised they didn't take these opportunities last budget (rather than hit business with the obvious concequential impact of confidence and growth).

Ian

 

[CXRAndy]

No government has taxed it's way to wealth. Wealth comes when you reduce taxes on the private sector. They are the wealth creators that generate far more taxable income
, bringing in more coffers to the treasury.

Re inheritance tax. It should be abolished completely. If you are hard working build something of your life, it should be a right to pass the entirety onto the next generation.

Hard work should always have great rewards. It's what drives individuals to better, sets an example for others.

 

[AuroraSaab]

They made a big fuss of saying hard-working people won't pay more tax so they'll have to start with other stuff before they get round to us lot. Personally, I would tax online gambling massively and restrict it, and the advertising of it, but I'm not sure that's a popular view.

 

[C R]

No government has taxed it's way to wealth. Wealth comes when you reduce taxes on the private sector. They are the wealth creators that generate far more taxable income
, bringing in more coffers to the treasury.

Re inheritance tax. It should be abolished completely. If you are hard working build something of your life, it should be a right to pass the entirety onto the next generation.

Hard work should always have great rewards. It's what drives individuals to better, sets an example for others.

You have already told us before that you're into watersports. Your kinks are your business, just don't try to force them in the rest of us.

 

[CXRAndy]

Tax processed food to the hilt, make the nation healthy, less demands on NHS, social care. The knock on would be enormous.

higher taxes on cigarettes and alcohol too. You could have a slightly lower tax for alcohol bought from pubs and restaurants encourage sensible drinking, not late night solo binge sessions

 

[AuroraSaab]

It's nuts that a frozen pizza costs less than a couple of apples. I wasn't in favour initially but I've come round to the fat tax thing.

 

[CXRAndy]

The Starmer message isn't getting through. So Rachel from accounts is offering film companies tax breaks.

Presumably for political short films embedded into the intermissions

 

[C R]

Tax processed food to the hilt, make the nation healthy, less demands on NHS, social care. The knock on would be enormous.

higher taxes on cigarettes and alcohol too. You could have a slightly lower tax for alcohol bought from pubs and restaurants encourage sensible drinking, not late night solo binge sessions

Good luck with convincing your bois doing that. They'll be calling you you a far left marxist in no time.

 

[CXRAndy]

Good luck with convincing your bois doing that. They'll be calling you you a far left marxist in no time.

I'll have the full set then - yes!

 

[CXRAndy]

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