>Whitehall sources say there is growing concern about the limited options for tax rises to fill a hole the Institute for Fiscal Studies (IFS) thinktank says is as big as £25bn, ahead of the budget on 30 October.
Yes! You’re a mug if you get your money from working in the UK
0711steve on
For heaven’s sake bite the fucking bullet and put 2p in the pound on income tax for the NHS fund it directly from everyone’s taxes.
You are happy to give in to the train drivers.
Pay the nurses and carers a decent wage and you will get the staff.
ratttertintattertins on
… Googles to check it doesn’t affect S+S ISAs or pensions…. It does not. Phew.
bobblebob100 on
If we do need to find 20 odd billion from somewhere, all these people against x tax rise, whats your alternative suggestion? All well being against them but that doesnt reduce the black hole in the finances
This is politics all over – whether its MPs or the voters. Quick to criticise without offering an alternative solution
ArtistEngineer on
CGT freebies were already being scaled back under the Tories, none of this should come as any surprise.
I think it’s fair that CGT should just be part of normal income. e.g. Australia has simple rules for Capital Gains, and you get discounts for holding an asset for longer, and primary residence is exempt.
>If you have a net capital gain you pay tax on the gain at your marginal income tax rate.
>If you have a net capital loss you cannot deduct it from your other income but you can carry it forward to reduce capital gains you make in future years.
You were warned. Here come Labour to raid your pockets.
MuthaChucka69 on
We will need it to be even higher if inequality keeps growing. I don’t understand why it’s so hard for people to understand the more money the rich hold and earn the more they need to pay in tax to maintain society.
63% of new wealth went to the top 1% and it gets larger each year, that’s unsustainable. If we don’t tax to redistribute the government and average person will keep getting poorer and poorer.
There are already examples of where we are heading and it’s not pretty.
Careful-Swimmer-2658 on
Workers are taxed at 40% on their wages, why shouldn’t capital gains be taxed at the same rate. Sounds suspiciously like rich people getting a better deal as usual.
Far-Crow-7195 on
I am just quietly hoping that all these stupid tax rises that keep being leaked are done deliberately so whatever she actually does appears quite moderate.
grapplinggigahertz on
Raise CGT to 39% and the evidence from the past is that tax take goes down and not up.
If the tax is increased then those with assets with capital gains, such as property or shares, simply don’t sell them in the expectation that a future Conservative government will reduce the rate.
And no sale means no taxable gain which means no tax.
xParesh on
I hope Reeves takes looks back of Truss’ tenure and makes smart policy choices detached from ideology.
I know its almost Halloween but the markets don’t appreciate being spooked.
Mortgage swap rates have already started rising and lets hope mortgage rates don’t jump back to 6% the day after the budget.
0711steve on
Stop giving money to India and Pakistan they are nuclear powers, and African countries that spend it on weapons rather than people.
According_Word8962 on
I mean, Norway’s dividend tax is 37.84% and from the gains from selling stocks and shares (No brackets or thresholds it seems), whereas it’s 8.75% between £500 and £37,200, 33.75% £37,200 – £125,140 and 39.35% above £125,140 in the UK…
Whereas in Norway their capital gains tax on things like property is 22%. Ours is: Basic rate (10%): £0 – £50,270 annual income
Would this really help that much? Would we not be better off just scrapping the tax brackets for dividend tax? Or at least getting rid of the additional rate tax bracket and setting the higher rate bracket to 39%?
I’m sure people will respond and complain but Norway is overall a happier country than ours.
Meet-me-behind-bins on
Labour expands the state, raises taxes, spends money for a decade until they lose power. Tories shirk the state, cut taxes(usually), cuts spending until they lose power. This is the way of things. Hopefully one balances out the other over long term. So long as the individuals making and delivering the policies don’t do anything stupid. Which is where the dialectic falls apart.
Odd-Loan-5704 on
I keep hearing about capital gains tax recently. Can someone explain in absolute laymen terms what it is?
thebuttonmonkey on
If only there were some recently occurred enormous black hole in the economy we could do something about instead.
NauticalNomad24 on
If you have to raise any tax, it should be this one.
finniruse on
I’ve spent 10 years trying to get on the property ladder by investing in crypto. I feel like I’m about to get absolutely shafted on the year it comes good.
I can speak personally to the not selling thing. I’m either gunna not invest the cash stack I have and just use that for a property. And then just leave the crypto because it’s not worth selling.
I’m really distressed about this potential cap gains rise tbh. Half considering leaving the county.
dalehitchy on
I think my honeymoon period is over with labour. We can’t keep taxing people for everything.
Dependent_Good_1676 on
Cut foreign aid and stop paying for vagrants to live in hotels
xParesh on
It feels like a Student Union debating society have magically got into power and get to run the show. I’m not at all hating on their good intent or wanting society to be a better and balanced place but jeez… if you want to be too ideological, look what happened to the last Lettuce that tried it.
No pressure Rachel, you get paid enough to make the right decisions.
You’ll have your name in history for being famous or infamous.
benl_ on
No one is going to sell at 40% so gov won’t earn income
Vanobers on
22 billion for “carbon capture” ran by 6 private energy companies though…..
It’s mostly a tax on money that has already been taxed (savings invested into stocks/property), it isn’t indexed for inflation and is a gain from taking a risk on an investment.
This would result in a drop in tax revenue and investment into this country drying up, which we desperately need in businesses/housing to keep our economy alive.
Most would prefer to invest their money abroad, in pensions or hold onto their assets until a new government realises the error and reduces the rate.
29 Comments
>Whitehall sources say there is growing concern about the limited options for tax rises to fill a hole the Institute for Fiscal Studies (IFS) thinktank says is as big as £25bn, ahead of the budget on 30 October.
Well well well, it’s not like [_anyone_](https://news.sky.com/story/general-election-2024-conspiracy-of-silence-from-tories-and-labour-over-tax-plans-in-manifestos-thinktank-ifs-says-13157900) warned Rachel Reeves about the danger of ruling out raising the four largest tax revenues. Looks like she has made her own bed.
Yes! You’re a mug if you get your money from working in the UK
For heaven’s sake bite the fucking bullet and put 2p in the pound on income tax for the NHS fund it directly from everyone’s taxes.
You are happy to give in to the train drivers.
Pay the nurses and carers a decent wage and you will get the staff.
… Googles to check it doesn’t affect S+S ISAs or pensions…. It does not. Phew.
If we do need to find 20 odd billion from somewhere, all these people against x tax rise, whats your alternative suggestion? All well being against them but that doesnt reduce the black hole in the finances
This is politics all over – whether its MPs or the voters. Quick to criticise without offering an alternative solution
CGT freebies were already being scaled back under the Tories, none of this should come as any surprise.
I think it’s fair that CGT should just be part of normal income. e.g. Australia has simple rules for Capital Gains, and you get discounts for holding an asset for longer, and primary residence is exempt.
>If you have a net capital gain you pay tax on the gain at your marginal income tax rate.
>If you have a net capital loss you cannot deduct it from your other income but you can carry it forward to reduce capital gains you make in future years.
There is a capital gains tax (CGT) [discount](https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/cgt-discount) of 50% for Australian resident individuals who own an asset for 12 months or more. This means you pay tax on only half the net capital gain on that asset.
Some assets are [exempt from CGT](https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/list-of-cgt-assets-and-exemptions), such as your home.
[https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/calculating-your-cgt](https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/calculating-your-cgt)
You were warned. Here come Labour to raid your pockets.
We will need it to be even higher if inequality keeps growing. I don’t understand why it’s so hard for people to understand the more money the rich hold and earn the more they need to pay in tax to maintain society.
63% of new wealth went to the top 1% and it gets larger each year, that’s unsustainable. If we don’t tax to redistribute the government and average person will keep getting poorer and poorer.
There are already examples of where we are heading and it’s not pretty.
Workers are taxed at 40% on their wages, why shouldn’t capital gains be taxed at the same rate. Sounds suspiciously like rich people getting a better deal as usual.
I am just quietly hoping that all these stupid tax rises that keep being leaked are done deliberately so whatever she actually does appears quite moderate.
Raise CGT to 39% and the evidence from the past is that tax take goes down and not up.
If the tax is increased then those with assets with capital gains, such as property or shares, simply don’t sell them in the expectation that a future Conservative government will reduce the rate.
And no sale means no taxable gain which means no tax.
I hope Reeves takes looks back of Truss’ tenure and makes smart policy choices detached from ideology.
I know its almost Halloween but the markets don’t appreciate being spooked.
Mortgage swap rates have already started rising and lets hope mortgage rates don’t jump back to 6% the day after the budget.
Stop giving money to India and Pakistan they are nuclear powers, and African countries that spend it on weapons rather than people.
I mean, Norway’s dividend tax is 37.84% and from the gains from selling stocks and shares (No brackets or thresholds it seems), whereas it’s 8.75% between £500 and £37,200, 33.75% £37,200 – £125,140 and 39.35% above £125,140 in the UK…
Whereas in Norway their capital gains tax on things like property is 22%. Ours is: Basic rate (10%): £0 – £50,270 annual income
* Basic rate (10%): £0 – £50,270 annual income
* Higher rate (20%): above £50,270 annual income
* Residential property: 18% (basic rate) / 24% (higher rate)
Would this really help that much? Would we not be better off just scrapping the tax brackets for dividend tax? Or at least getting rid of the additional rate tax bracket and setting the higher rate bracket to 39%?
I’m sure people will respond and complain but Norway is overall a happier country than ours.
Labour expands the state, raises taxes, spends money for a decade until they lose power. Tories shirk the state, cut taxes(usually), cuts spending until they lose power. This is the way of things. Hopefully one balances out the other over long term. So long as the individuals making and delivering the policies don’t do anything stupid. Which is where the dialectic falls apart.
I keep hearing about capital gains tax recently. Can someone explain in absolute laymen terms what it is?
If only there were some recently occurred enormous black hole in the economy we could do something about instead.
If you have to raise any tax, it should be this one.
I’ve spent 10 years trying to get on the property ladder by investing in crypto. I feel like I’m about to get absolutely shafted on the year it comes good.
I can speak personally to the not selling thing. I’m either gunna not invest the cash stack I have and just use that for a property. And then just leave the crypto because it’s not worth selling.
I’m really distressed about this potential cap gains rise tbh. Half considering leaving the county.
I think my honeymoon period is over with labour. We can’t keep taxing people for everything.
Cut foreign aid and stop paying for vagrants to live in hotels
It feels like a Student Union debating society have magically got into power and get to run the show. I’m not at all hating on their good intent or wanting society to be a better and balanced place but jeez… if you want to be too ideological, look what happened to the last Lettuce that tried it.
No pressure Rachel, you get paid enough to make the right decisions.
You’ll have your name in history for being famous or infamous.
No one is going to sell at 40% so gov won’t earn income
22 billion for “carbon capture” ran by 6 private energy companies though…..
https://www.independent.co.uk/climate-change/news/ed-miliband-richard-tice-andrew-murrison-government-reform-uk-b2625379.html
Ok, if they do that then I will leave the UK. CGT this high makes it impossible to FIRE in the UK.
Anything less than bringing it into line with income tax is too little.
Insane that someone who sells £100m of stocks will get taxed the same percentage as someone who sells £1K.
How about an e-invoicing mandate to close the tax gap? That could bring in about £40b!
https://www.gov.uk/government/statistics/measuring-tax-gaps/1-tax-gaps-summary
It’s mostly a tax on money that has already been taxed (savings invested into stocks/property), it isn’t indexed for inflation and is a gain from taking a risk on an investment.
This would result in a drop in tax revenue and investment into this country drying up, which we desperately need in businesses/housing to keep our economy alive.
Most would prefer to invest their money abroad, in pensions or hold onto their assets until a new government realises the error and reduces the rate.