Previous UK government ‘covered up’ financial turmoil ahead of election

Mazzarelli's Swiss Cheese said:
I think there is an element of economic sleight of hand going on with the tax bands remaining the same for so long. The triple lock looks like it will now put pensioners into the top band, and 30-60k is now where a lot fairly ordinary earners sit. My own job now puts me firmly in the 40p tax bracket whereas it was nowhere near that 10 years ago. Granted wages have gone up but nowhere near as much as prices and property so we are all getting poorer in real terms.
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There is definitely some of that going on, particularly in inflation-adjusting earnings creep. That is a flaw in the current system, though, and one that most policy analysts and economists have been pointing out from even before the pandemic. Much of those issues stem from having a truly historically long period of relative price stability that lulled policymakers in to ignoring the underlying dangers of inflation impacts on real wages and, subsequently, effective tax obligations (the old “it will always be sunny because the sun is out today” problem).

I think the Tories have absolutely jumped on that and have intentionally avoided correcting that flaw, though, as it benefits the narrative that overall wealth has increased amongst the lower ends of the wealth distribution.
 
DenisLawBackHeel74 said:

What you pay it on​

You pay Capital Gains Tax on the gain when you sell (or ‘dispose of’):

I wouldn’t say owning assets above £6k can be defined as being rich….nor having shares outside an isa or pep..
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And yet just 1% pay it every year.

Having over 6k of non housing/car assets isn't unusual, but how many have £6k+ of disposable assets that grow in value, that they need to sell in one tax year? Looking at the guidance, the suggestion is that it's paintings, antiques etc. Not your sofa and TV.

And how many have shares outside an ISA? Mostly people who are saving more than the £20k a year ISA limit?

And they would only be paying CGT on the gain, and then, even with the recent Tory cuts, it's only the gain above 3k in an individual year. That suggests having much more than £6k of shares, that you didn't put in an ISA. and also that you need to sell at once in order to have made a £3k profit.
 
Labour proving once again jobs for the boys.Unions already saying could be strike action over restorative pay rises.
Meanwhile pensioners will be dying off the cold.
This country needs a different way of electing cunts.The manifestos arwnot worth the paper they were printed on.
 
DenisLawBackHeel74 said:
It’s from the Govt website so no idea …
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They do give examples:

You may have to pay Capital Gains Tax if you make a profit (‘gain’) when you sell (or ‘dispose of’) a personal possession for £6,000 or more.

Possessions you may need to pay tax on include:

  • jewellery
  • paintings
  • antiques
  • coins and stamps
  • sets of things, eg matching vases or chessmen
You’ll need to work out your gain to find out whether you need to pay tax.
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I guess anyone can get lucky with an antique in the family, but let's be honest, these examples are mainly rich people stuff. I don't know many people who are selling second hand possessions for over 6 grand. The explanation there makes it clear that it's referring to a single possession being worth more than £6k, not a total value of multiple possessions (unless it's a set).

But personally, I don't really care whether it hits some people on a more modest income. Ultimately capital gains tax is aimed at unearned income, and I have very little sympathy for anyone arguing that they should be charged less tax on the profits from an antique they found, or a watch they bought, left in a drawer and sold for a profit, than they should on a year of working full time.
 
Not sure why they don’t put up the additional rate back up to 50% where it used to be. Anyone on £125k a year is not exactly poor.
 
MouldensChippy said:
Sounds like a preamble to some tax rises to me ?
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It certainly is. Those who think life is easier under labour may have a rude awakening. I am not taking political sides, I worked in central government for years under Tory/Labour and Coalition administrations and I know the previous Labour incumbents were pretty tough on tax and welfare claimants.Just saying. They are all as bad as each other imo.
 
bluenova said:
And yet just 1% pay it every year.

Having over 6k of non housing/car assets isn't unusual, but how many have £6k+ of disposable assets that grow in value, that they need to sell in one tax year? Looking at the guidance, the suggestion is that it's paintings, antiques etc. Not your sofa and TV.

And how many have shares outside an ISA? Mostly people who are saving more than the £20k a year ISA limit?

And they would only be paying CGT on the gain, and then, even with the recent Tory cuts, it's only the gain above 3k in an individual year. That suggests having much more than £6k of shares, that you didn't put in an ISA. and also that you need to sell at once in order to have made a £3k profit.
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In addition to this, my reading is that it is only paid on the gain realised on the sale of individual possessions worth £6,000 or more.

The frequency of those types of transactions for those in the bottom half of the wealth distribution is going to be very low (unfortunately, as it is an indication of the current rampant asset poverty).
 
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