Budget 2024

[alan__mcfc]

Good to see pensions will be included in inheritance tax calculations. Shame they're freezing the threshold till 2030 though.

absolute bollocks. i assume you have not been paying into a pension for over 35 years. Do you realise that death in service benefits are included in this. So if your house is worth the same as IHT your death in service life insurance is taxed to fuck as well as your pension, see below

Position from 6 April 2027​

2.4. The value of Jas’s lump sum death benefit will be included within her estate immediately before death for Inheritance Tax. Jas’s estate, for Inheritance Tax purposes, will be valued at £600,000 and the Inheritance Tax liability will be £110,000. (£600,000 - £325,000 nil rate band = £275,000. Inheritance Tax charged at 40% = £110,000). The PSA would be liable to pay Inheritance Tax of £36,667 from the lump sum death benefit before paying this to her son. The PR would be liable for Inheritance Tax of £73,333

Technical consultation - Inheritance Tax on pensions: liability, reporting and payment

www.gov.uk

And its the pension schemes who have to pay the IHT and are liable for late payment, who do you think pays for that, the policyholders. The pension schemes will have to invest significant amounts to administer these payments too, again funded by those who pay into a private pension.(not public sector as that will be covered by increases in your council tax)

ok if you pay £80 into your pension you get £20 tax relief. In 30 years that £100 is worth £200. If it is subject to IHT that's £80 IHT to pay. So the government make £60 profit but you took the risk.

 

[BerkshireBlue]

I only ask as I was listening to some sort of ‘Rich Peoples Alliance’ who are saying that they want to be taxed more as they have a responsibility to the country. These are obviously very rich people who were not talking about buying a new shirt, more of a new mansion or jet plane.

It got my interest as I heard all of the talk about people leaving but these people were the complete opposite and realised that they couldn’t take all their money with them, if you know what I mean.

It’ll be interesting to see how many actually leave the country and my biggest bug-bear is for those who have made the majority of their money, in the UK, moving abroad and not wanting to support the country, after years and years of cuts to the social apparatus, that supported them to make that money.

I must admit I was bloody nervous coming into this budget. I thought reeves was going half my wealth and knacker my business but she's played a blinder here. Yes I'll pay shit loads more tax but it's not a big ask. It's still quite reasonable. I don't mind paying an extra couple of % of NI for all the staff. I don't mind her taking 18% rather than 10% of all my companies shares either. It's needed to sort this country out and I'm happy to give it. I would have been pissed off if that 10% jumped to 40% or NI jumped to 20%+ though. It's just great to finally get a budget written by someone who actually knows what they're doing for once. They just need to work out how to stop private companies creaming off all the public spend and they'll be on fir a great start.

 

[dobingsdobber]

how big are their businesses? How many do they employ and at what rates of pay? And why squeeze your own business - if all around you people are better off and those people are potential customers if you can't service their demands because you have insufficient staff

Catering to the poorer strata of the elderly.They employ 14 people,the rates of pay are none of my business and thus none of yours,but they are certain this will hit them hard.Responding to your last comment,they are frequently understaffed for various reasons and guess what,everyone who is on site works harder.It's called work ethic,not something you hear much about these days.They have also won nine awards in the last five years and the Sunday Times did a full-page article on them a couple of years ago in the business section

 

[alan__mcfc]

and the extra budget for the NHS is a joke, a significant amount will go on increased wages, increased pension contributions and increased employer NI (i don't begrudge the pay rises BTW)

 

[Churchlawtonblue]

IMO this was a very negative budget for SMEs. These companies employ nearly two thirds of working people and already pay the highest percentage of tax and quite often have the smallest margins. Therefore, these additional tax rises will in most cases have to be passed on and the consumer will pay and inflation is likely to rise as a result.

The Chancellor had an opportunity to tax those that don't pay their fair share of tax, the big national and international companies that pay no UK corporation tax or in some cases not even VAT and use tax havens like the ROI and Luxemboug. Unfortunately she chickened out just like the last government.

This article below is just about 7 international tech companies. Add in the FTSE100 none of which paid any UK corporation tax and it isnt difficult to see that Reeves budget deficit of £40b would be an awful lot smaller.

Seven large tech groups estimated to have dodged £2bn in UK tax in...

TaxWatch analysis shows how complex tax driven structures are used to reduce tax bills.

www.taxwatchuk.org

I am not convinced that this budget will grow the economy in the short or medium term, but the proof of the pudding will be in the eating, and it's on that growth that Reeves and the Government will be judged.

 

[bluethrunthru]

Catering to the poorer strata of the elderly.They employ 14 people,the rates of pay are none of my business and thus none of yours,but they are certain this will hit them hard.Responding to your last comment,they are frequently understaffed for various reasons and guess what,everyone who is on site works harder.It's called work ethic,not something you hear much about these days.They have also won nine awards in the last five years and the Sunday Times did a full-page article on them a couple of years ago in the business section

I was just asking because some of the changes announced today took small businesses with fewer employees OUT of the tax band but yeah feels free to feel offended by an innocent query - I hope a future lack of staff doesn't hinder their small businesses growth

 

[Vic]

What is good about it - It’s outright theft - I chose to invest in a pension because the rules were in place that made it the best place for my family. At a stroke this twat has stolen 40 percent.

But it's supposed to be a pension, not an investment for your family. Leave the surplus pension to charity.

"1.4. In recent years, pension schemes have been increasingly used and marketed as a tax planning tool to transfer wealth without an Inheritance Tax charge, rather than for their intended purpose of funding retirement. This has been exacerbated by certain changes in pensions tax policy over the past decade. The introduction of pension freedoms in 2015 removed a 55% charge for pensions funds which remained unused at death and the abolition of the Lifetime Allowance in March 2023 removed the cap on the amount of tax-relievable pension savings an individual can accumulate over their lifetime. This means that individuals can accumulate unlimited tax-free savings in their pension, draw on other means to fund their retirement and leave their unused pension assets to be inherited by beneficiaries without any Inheritance Tax charge."

 

[Churchlawtonblue]

But it's supposed to be a pension, not an investment for your family. Leave the surplus pension to charity.

No it wasn't, the option to pass it on to your family without paying tax has always been there, so people chose to do exactly that, there was absolutely nothing wrong in this as you imply.

I think what she has done will only increase the use of offshore trusts and discourage some people from saving in a pension.

 

[Churchlawtonblue]

Autumn Budget 2024: How will it impact SMEs?

Here are the main points and what it may mean for your business

elitebusinessmagazine.co.uk

This article sums up the impact this Budget may or is likely to have on SMEs.

 

[Vic]

No it wasn't, the option to pass it on to your family without paying tax has always been there, so people chose to do exactly that, there was absolutely nothing wrong in this as you imply.

I think what she has done will only increase the use of offshore trusts and discourage some people from saving in a pension.

See the edited version above.

Telegraph's headline says a lot.

Grieving families face £65,000 blow in Reeves’s inheritance tax grab​