![Image](https://i.postimg.cc/pXK2ttT6/IHT-allowance-decline.png)
(data sourced from gov.uk and ONS (CPI))
Labour and Reform are at least both offering to remove those on a basic state pension and modest savings out of having their low levels of income being taxed. Not so for the Tories given past actuals.
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MrFoolish wrote:Nimrod103 wrote:Gains in monetary terms due to inflation require no skill, but are not "real" gains. They do not buy you an extra pound of rice.
Gains in "real" terms usually do require skill or hard work, and a big element of risk.
Yes, I know all this. So I'll ask again. What assets are you sitting on that are going to cause you a CGT problem? Or are you worrying on behalf of the owner of the Telegraph?
Nimrod103 wrote:MrFoolish wrote:
Taxes are supposed to encourage actions that are useful to the country, as well as raising revenue.
As you say, buying shares on the secondary market doesn't achieve much. Especially if they are the US shares beloved by Lootman.
And people do actually leave property empty. A popular trick for Russians with London properties for example. And I know someone who casually keeps a house empty because he expects the value to keep going up. Meanwhile we have increasing numbers of people living rough.
You already have ISAs, pensions and CGT thresholds. You haven't really made the case for any further generosity.
ISAs have low limits, and are still subject to stamp duty tax. Pensions are mostly just deferred taxation, and CGT thresholds have largely been abolished.
People do leave property empty, but in my neighbourhood is rare, and usually caused by probate or planning permission delays.
All political parties seem to want greater investment, and you write that 'Taxes are supposed to encourage actions that are useful to the country', so why are investment returns heavily taxed in the UK. As mentioned before, many countries do not tax gains, and so they prosper.
Nimrod103 wrote:One does no 'sit on assets'. They generate an income which is taxed.
But if the gain due to inflation of the underlying asset is also taxed, then effectively the total gain (revised asset value+income) is double taxed. Selling an asset after say 10 years of holding could easily lead to having received no gain in "real" value at all.
ukmtk wrote:When I mention our ISA & pension schemes to my German boss he is jealous as they don't have such tax friendly schemes.
ukmtk wrote:I would argue that for most people ISA limits are not low!
I have never filled up an ISA allocation - especially now the limit is £20K and I'm on a good salary with no mortgage or children.
When I mention our ISA & pension schemes to my German boss he is jealous as they don't have such tax friendly schemes.
Arborbridge wrote: This thread shows that some of us are in danger of losing this most human of traits.
I suspect that this could be true of the Tory voter and right wing generally.
Arb.
MrFoolish wrote:Nimrod103 wrote:One does no 'sit on assets'. They generate an income which is taxed.
But if the gain due to inflation of the underlying asset is also taxed, then effectively the total gain (revised asset value+income) is double taxed. Selling an asset after say 10 years of holding could easily lead to having received no gain in "real" value at all.
Clearly you are not going to answer what your personal concern is in this matter. It would be nice to discuss a tangible example. And I'd love to get out my violin for you.
TJH wrote:I grant you that most people will not have sufficient surplus income to use the full allocation in normal circumstances
tjh290633 wrote:ukmtk wrote:I would argue that for most people ISA limits are not low!
I have never filled up an ISA allocation - especially now the limit is £20K and I'm on a good salary with no mortgage or children.
When I mention our ISA & pension schemes to my German boss he is jealous as they don't have such tax friendly schemes.
Back when ISAs were new, I used the £6k limit several times as I had lump sums from pensions to reinvest. I can see people with SIPPs or other pensions being in the same position, and needing several years to complete the job.
I grant you that most people will not have sufficient surplus income to use the full allocation in normal circumstances, but the need can arise when insurance policies mature or inheritances are received.
TJH
Tedx wrote:tjh290633 wrote:Back when ISAs were new, I used the £6k limit several times as I had lump sums from pensions to reinvest. I can see people with SIPPs or other pensions being in the same position, and needing several years to complete the job.
I grant you that most people will not have sufficient surplus income to use the full allocation in normal circumstances, but the need can arise when insurance policies mature or inheritances are received.
TJH
Not sure why you would take it out of a (personal) pension / SIPP and put it into an ISA - these days anyway.
tjh290633 wrote:Tedx wrote:
Not sure why you would take it out of a (personal) pension / SIPP and put it into an ISA - these days anyway.
You mean that you would not extract your 25% tax free lump sum, and invest it in a tax free account?
What would you do then?
tjh290633 wrote:Tedx wrote:
Not sure why you would take it out of a (personal) pension / SIPP and put it into an ISA - these days anyway.
You mean that you would not extract your 25% tax free lump sum, and invest it in a tax free account?
What would you do then?
TJH
Tedx wrote:Leave it in the pension. I's already in a tax free account. Use your ISA for other money.
Things are far more flexible these days.
kempiejon wrote:Tedx wrote:Leave it in the pension. I's already in a tax free account. Use your ISA for other money.
Things are far more flexible these days.
Nah, pensions are tax deferral. Take the 25% out, invest it into the ISA, all income is tax free. Leave it in the SIPP all income is taxed at your marginal rate.
Gotcha. TaTedx wrote:Errr....no. You can flexibly access the 25% TFC any time in whatever amounts you want
Tedx wrote:tjh290633 wrote: You mean that you would not extract your 25% tax free lump sum, and invest it in a tax free account?
What would you do then?
TJH
Leave it in the pension. I's already in a tax free account. Use your ISA for other money.
Things are far more flexible these days.
MrFoolish wrote:Nimrod103 wrote:CGT is just a tax on the increase in asset prices caused by Government debauching the currency. Why is that such a difficult concept for people to understand? It is an iniquitous tax.
So you admit there was no skill or hard work behind the gains.
But if you like me to get out my violin for you, give some examples of where you've had to pay this supposedly unfair tax.
MuddyBoots wrote:Tedx wrote:
Leave it in the pension. I's already in a tax free account. Use your ISA for other money.
Things are far more flexible these days.
How are pensions tax free, apart from the 25% lump sum allowance? Have I missed a trick?
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