Tax rises?

[willendure]

I can see pensions being an easy target. I'd not be surprised to see a new tax on pensions, and restrictions on the 25% lump sum, probably phased in. Some form of limit on salary sacrifice, and tax relief at marginal rate replaced with a standard rate in the 25-30% range. This lot could be said not to impact the co-called 'working people'.

Frustrating, because in theory by the time gen-x retire, the treasury can no longer afford to pay pensions, so we are on our own - dependant on saving into a private pension. It needs to be encouraged as much as possible.

Most of us are probably already registered for VAT. Maybe only the measly £500 dividend allowance is all the bitch will squeeze out of us.

[malvolio]

Erm....

Fuel duty rises and increased taxes for non EVs. Effectively a tax for those refusing to conform.

Or refusing to sign up to an incomplete and inefficient solution? Would also increase the cost of everything - how many EV lorries are on the road...?

Increasing taxes on unearned income to align with earned income.

There's not a lot of difference now if you look at all the elements

Tax ISA interest for those with over £100k in ISAs.

Probably need primary legislation. Plus serious money is not in ISAs anyway.


I stick with my original analysis. I do not expect logic or fairness to be any part of the upcoming budget. The real answer is to cut back the public sector and the welfare state to something more sensible. That won't happen either .

[Protagoras]

I stick with my original analysis. I do not expect logic or fairness to be any part of the upcoming budget. The real answer is to cut back the public sector and the welfare state to something more sensible. That won't happen either .

I don't disagree with any of your comments. These 'budgets' are not really driven by rational economic considerations, but rather by political considerations and the interests of party stakeholders.

[hobnob]

how many EV lorries are on the road...?

Not many at the moment, but it looks like that number will increase.

"By 2040, all new heavy-duty trucks will be zero emission with smaller trucks weighing less than 26 tonnes being phased out from 2035 onwards.
For now, the transition is slow. Just 1% of new heavy goods vehicles sold are zero emission – but it’s a growing market and one government is keen to support with financial incentives."
The rise of electric heavy goods vehicles in the UK: What businesses need to know in 2025 | GRIDSERVE

[SueEllen]

Reduce the amount you can put in cash ISAs to 10K per year, and ensure that 25% of money going into Stocks and Share ISAs is invested in companies listed in the UK.

[BlueSharp]

LLP changes (confirmed)

Div allowence kept, banding frozen and rate increased, so corp tax + div tax matches self employed tax level (about £2k difference at £100k profit). Possibly corp tax changes to small business relief instead to align tax rates
VAT on other 'luxury services'

If she goes with income tax increase div tax will certainly go up.

Cash ISA limit dropped to £5k per year.

[malvolio]

LLP changes (confirmed)

Div allowence kept, banding frozen and rate increased, so corp tax + div tax matches self employed tax level (about £2k difference at £100k profit). Possibly corp tax changes to small business relief instead to align tax rates
VAT on other 'luxury services'

If she goes with income tax increase div tax will certainly go up.

Cash ISA limit dropped to £5k per year.

The tax raid on ISAs is not directly about revenue generation, it's to force money on to the stock market. The zero tax is only on the interest earned, running at around 4% at the most so barely above inflation. Reducing the contribution limit isn't going to do anything for the billions already in ISAs, which the banks freely admit is the source for the money they invest in the market . And let's not forget, most ISAs were filled up from taxed income, as somewhere to park your rainy day money safely.

It is a measure of Reeves' ignorance that she thinks this will release money for her to spend. It won't, people will simply put it elsewhere. This is not major money, the average ISA is £33k or so, even those of the older savers is £63k.

[Protagoras]

The tax raid on ISAs is not directly about revenue generation, it's to force money on to the stock market.

Which aleady looks to be in bubble land to many off us!

[Snooky]

It is a measure of Reeves' ignorance that she thinks this will release money for her to spend. It won't, people will simply put it elsewhere.

I love the way you think you're better informed than the Chancellor with a huge team of experts advising her. It's certainly not ignorance, although it may turn out not to be the best of several well-informed options.

[jamesbrown]

I love the way you think you're better informed than the Chancellor with a huge team of experts advising her. It's certainly not ignorance, although it may turn out not to be the best of several well-informed options.

Oh, I don't know, the Treasury can be spectacularly ignorant. For example, they are briefing about targeting LLPs specifically, seemingly without any understanding of the wider landscape of partnerships and how they operate, which is why they briefed shortly afterwards that this wouldn't target traditional partnerships (e.g., GPs), again without understanding the implications of that (anyone who does understand will be chucking at this point). Honestly, many who work in the Treasury are as thick as mince and hence perfectly fair game for criticism. The Thick of It was not merely comedy, it was commentary.