airbus330 wrote:Its getting like whack-a-mole with the big tax hike mystery.
So, yesterday, Starmer has put a 'never' on record for CGT on Primary Residences.
I'm afraid I don't believe a word re their tax plans (or anyone's actually). If they have to be, I expect Income NI VAT will be raised during the next parliament, and weasel words will be found. A "supermajority" only increases the number of seats they can "spend" in 2029 breaking that promise. That the Tory opposition will likely be a navel-gazeing mess for the next 5 years makes that political calculation a little easier.
"Working people" is code for "not pensioners" imo, I fully expect pension reliefs and incomes are being looked at. That is my worry as my own plans are targeted at drawdown from 2030 onwards. I can see a few possibilities
-levying NI on everyone under state pension age (66-67) regardless of income source, ie. 55-57+ year olds drawing down early from SIPPs
-what was the tax free lump sum is now just another threshold (£268,275) that can be trimmed to squeeze out more income tax. (£250,000 anyone, for starters?)
-flat rate pension reliefs, again to squeeze out more income tax out of higher earners
My own plans originally targeted a pension size of ~£1,073,100 throwing off a natural yield income of ~£50,270 (4.7% yield) and tracking RPI thereafter, keeping the capital in the tank for very old age/illness and my estate. That's about as tax-efficient as a SIPP can be, I figured. I'm close to that already and may now stop pension contributions altogether from next year. Lady M's SIPP and VCTs may be the next port of call, assuming those reliefs remain.
