Labour's Alleged Tax Raid on Pension, ISAs, CGT & IHT

[@JamesShack]

If you want my synopsis of the Budget on the day, sign up for my Newsletter here: james-shack.co.uk/newsletter

[@Radictor44]

I started investing because of your video's James. Small incremental steps for long term gain. 👍

[@DrakeBuilders]

So far they have done a beautiful job at poking the country to date... PRENTENDING THERE AWESOME? Still???

[@iainrichardson1420]

@@JamesShack no thanks

[@mphomokoena8835]

Mate I have a question about gaining access to my pension before retirement. Could you kindly make a video about that. Is transferring to a preservation fund a good idea?

[@ClareFolkard]

@jamesshack - sounds great. I’ve also requested some personalised financial planning advice with you. Can you let me know roughly how long the waiting list is?

[@Hannahbenowitz]

The tax code seems overly complex, making it difficult to identify the most tax-efficient strategies for my income and investments. Are there resources available to help me understand relevant deductions and credits that could maximize my after-tax returns?

[@bartlyAD]

You're right, the code can be a beast. There are definitely resources available to help you understand deductions and credits. The IRS website has a wealth of information, but for a more personalized approach, consider consulting with a tax advisor who specializes in investments. They can help you identify strategies that maximize your after-tax returns.

[@DaliaCohen2230]

I love the insight. Professionals could make a really big difference in investing, and I think everyone should have one. There are aspects of market trend that is difficult for the untrained eyes to see. I have made more than 350% through my estateplanner(fa) by alternative investing. The portfolio comes with perks as well.

[@HildaBennet]

One of my goals is to employ the service of an asset-manager this year. I've seen some off social media but wasn't able to get a response. Could you recommend one?

[@DaliaCohen2230]

Don't be hesitant to contact Sonya Lee Mitchell and follow her directions.

[@HildaBennet]

It's good you make your own research. and make sure whoever you work with is licensed n verifiable with a repute, this Sonya looks the part but i'd do my due diligence. I set up a call, thanks.

[@colinhudman]

The risk of making poor financial decisions based on the press stoking up fear about the budget is way greater than the risk of financial losses from the budget. Some parts of the media can be so damaging to peoples financial and mental wellbeing.

[@JamesShack]

Agreed.

[@guyr7351]

Exactly, as has often been pointed out if you leave your pot to grow then the tax free sum can increase. This of course is referring to those of us whose pots are much lower than the £268K maximum. Nothing is being mentioned about DB scheme lump sums, as it stands I have a DB scheme scheduled to pay out Feb 25, which has a £50K approx lump sum, and about £25K in a DC scheme. I’m hoping/thinking both of these combined are below what might be what Labour consider a new maximum amount. As James has said with pensions being so complex it is rare for any major changes ever to be implemented overnight.

[@TheRealRobG]

You mean like the Daily Mail and Brexit.

[@jam99]

Not only so damaging to finances and mental wellbeing but to the cohesion of society and morale. And don’t forget that the point of media is to educate through information. Educate! On the whole, they disgust me through their irresponsibility.

[@FirstMM]

@@jam99 The point of media is to make money. It always has been. Reporters don't report, they speculate. Editor's don't edit, they set agenda's. Readers don't read, they validate their own narrative.

[@Scott-dg4nq]

I can make one guarantee. Just because “they previously said they won’t” is absolutely in no way a guarantee that they won’t.

[@manapause]

Student university fees day HI! 😂

[@kdog3908]

I saw a clip of Rachel Reeves herself sharing a sob story from the Labour party conference from a year ago. It was a heartfelt (apparently) anecdote about an elderly constituent who, upon answering the door, had purple hands because she was afraid of heating her home adequately so she was sat in the cold. Anecdote aged like a pint of milk on a summer day.

[@backgammonbacon]

@@kdog3908 Nothing can be done about stupidity like that, she was sitting in the cold when she had the winter fuel money what are we supposed to do? If she's not getting the money this winter then she already has enough to pay for her heating. Only those than can afford it are losing the money. You don't even need to pay for the fuel use at the point of use they get the bill in the spring. You will have forgotten about this next year so no idea why I am arguing with you.

[@tigading2177]

When it comes to politicians not only they won't, they would actually do the opposite, often double down!

[@kdog3908]

@@backgammonbacon Didn't stop Rachel using the anecdote to show, apparent, sympathy to the plight then go and stick the boot in when she's in the driving seat. How many Labour MPs have resigned the whip, or are thinking about it, now?

[@Endpoint101]

Thank you for the level-headed analysis of this.. so much better than the scaremongering we're seeing in the newspapers!

[@JamesShack]

You're welcome!

[@silondon9010]

People remember Gordon Brown's pension Raid 😢

[@Flashheartwoof]

They have form. Applying VAT on school fees through pure spite indicates that they are likely to introduce more spiteful tax rises in the future.

[@AgileSnowWeasel]

@@silondon9010 interestingly I believe his pension raid effect was far smaller in real terms than the effect of Truss's budget on pensions nearing retirement age.

[@1292liam]

@@Flashheartwoof we'll have to wait and see

[@jjsmallpiece9234]

Labour would do better closing the tax loop holes used by big business to avoid paying tax. Big business should pay tax at the same rate as small businesses.

[@akula9713]

They get sweetheart deals from HMRC or else they threaten to move to Ireland that has a low corporate tax rate of 12.5% compared to the U.K. tax rate of 25%, and the job losses would be substantial. It’s blackmail. I’d tax them, and if they move, ban their services or products. However a lot of these companies are US owned and the U.K. does what Washington tells them to do.

[@MCDONALD6969]

​@@northernrogue1smaller businesses still have the benefit of 19% corporation tax as well as offsetting lots as expenses & we are still able to draw money through dividends. So still a good deal.

[@oumuamua1963]

If you tax them they move abroad meaning no one has a job. Give big business tax breaks

[@BocaoZ]

@@oumuamua1963 no.

[@TrumanShow-im2ve]

The sams parasites that own the big corporations own the Governments and the installed puppets.

[@andyd3177]

Phew, I have nothing to worry about, as I’ve eff all pension, no isa’s and just the one house. A hard working self employed person with nothing to show for it, has finally paid off.

[@paulduncan789]

😂😂😂

[@rodneyhull9764]

the state is adding its name to your deeds as you sleep

[@iainrichardson1420]

Just used all the tax breaks for being self employed though..eh

[@kw8757]

Think you'll find you're going to be paying a lot more council tax on your house when the council tax bands get re-evaluated.....just me speculating of course.

[@goodhackergolf]

Don't be too happy, you have the 'unacceptable' label of being "self employed", they'll find a way to stiff you over!!

[@AndrewHepburn]

Thank goodness for a balanced and non-scaremongering view of the upcoming budget. Well done James 😊

[@Mora41]

Wait till the 30th... these morons running things will screw us.. one way or another.

[@voxley19]

I wonder if they are considering increasing the taxes on gifts such as thousands of pounds worth of free clothes, expensive spectacles, rent free use of plush apartments for months on end etc.

[@BLOCKsignallingUK]

Nice

[@Kefford666]

A drop in the ocean compared to what the old government did. If only they were so strict and loud mouthed about their own conniving

[@stermindelves4251]

Errrrr……..No!

[@Monty_VW]

Good point 👍🏻

[@neilbevan6480]

More chance of stopping the boats

[@marcbebbington6784]

In a time when everyone seems to be losing their head (understandably given the persistent negativity and hypothesizing in the media at large), I am very grateful to hear a voice of reason. Yours seems to be the only calming influence and likely will remain so until the doom and gloom peaks in one months time. Thank you James.

[@JamesShack]

Glad to be of service!

[@steveb3]

One of the few sensible videos, thanks for posting this.

[@JamesShack]

Glad it was helpful!

[@andrewwrench1959]

Couldn't agree more. I would say the UK has one of the worlds least capable investor bases (evidence, almost weekly take outs of listed companies and funds at significant premiums) so it is little surprise to see imprints in the stock market that are likely to cost investors more than they save even if e.g. CGT is increased.

[@Danxr-k4j]

Always the same. Those people with the “broadest shoulder” are actually working people. Just those working people who actually work very hard to better their lives for the future and once again we have to prop up those who can’t be arsed

[@noggintube]

It's not even the "broadest shoulders". It's just the middle class that have worked hard to get where they are. The super rich will of course get away through their usual avoidance tactics, and it's those people who should be the real target to bring more financial equality back.

[@tonybytheway7543]

100%

[@GrooveTasticThang]

Indeed if you are over £50k in the UK you are considered‘broad shoulders’- laughable- the problem in the UK is that so many people have low skill low pay- so the government take aim at the middle class on PAYE- in Europe more people pay more take not just ‘broad shoulders’- take responsibility for yiur housing / pension/ savings then get clobbered- elites just move their money / funds/ trusts/ abroad’

[@AzadBus-i7b]

Broad shoulders and unable to mitigate to be more accurate. PAYE, Pension etc all trackable and therefore easy target…

[@Kotka67]

You're ignoring the vast amount of money being defrauded by the rich by loopholes, off shore tax havens, etc and concentrating on the peanuts ( relatively speaking) claimed by benefit cheats. Well done for giving the gutter press what they want...

[@MrTonio1962]

Thanks James. Some sensible perspective and balance that was much-needed and is appreciated.

[@Shelboy249]

An oasis of common sense in a world of hype, speculation, clickbait and fear. Thanks James.

[@andljoy]

Can we stop calling it tax and call it what it is......theft.

[@MrKlawUK]

also as the conservatives have shown - no need to cut tax free cash. Freezing the amount like it currently is, *is* reducing it by inflation so we’ve had effective reductions by over 10% already and that will continue. Freezing and fiscal drag is the favourite new tool of chancellors as we are frogs in a pot and don’t notice it seems

[@mw01908]

Very true and the hidden tax they they cause - inflation. They do QE and hold rates too low so that we all loose

[@michaelmontagu3979]

The problem is that Labour will be making decisions based on political dogma, rather than what is good for the country. Reeves stupidly said that paying winter fuel money, about £1.5 billion, would cause issues with the bond market and a run on the pound. I'm not an economist (obviously neither is she,) but I would say that spending £8.5 on unemployed immigrants is more likely to cause a problem. She is clearly out of her depth. Mind you, she would be out of her depth doing the accounts for a back street grocery shop. She claimed that working at the Bank of England for a few years qualified her to be chancellor. Well, I must be qualified to be a doctor, having spent some years as a senior manager at a well-known medical professional body. I'm happy to be her surgeon! She is really useless. Much like everyone else in this cabinet, which is more like a bunch of student activists and thieves.

[@jablot5054]

It's the civil servants and the Bank of England that make policy. She is just a figure head.

[@craigfoulkes]

So we're you spunking your trousers when Truss was in charge. The budget that fucked the country.

[@michaelmontagu3979]

@@craigfoulkes I can't stand any politicians.

[@taxitoloei2055]

Student activists is exactly what they are. Could not have put it any better.

[@jbarea2080]

God help us in the coming couple of years in uk due to Rachel Thieves and dodgy Keir Harmer.

[@UnimportantAcc]

They better not touch my S&S isa or im finding some other country to put my money in

[@FirstMM]

You know other countries have tax too, right?

[@UnimportantAcc]

@@FirstMM not all sillyyyy

[@tf2368]

@@FirstMM🤡

[@johncenator3146]

@@FirstMM Lol not if he knows what he is doing, 9% is a lot better than 50%

[@andrewwrench1959]

You mean other country to move to? Your tax base is still here no matter where in the world your money is.

[@nheather]

I'm in the fortunate position that I could consider early retirement at any time. I will be looking closely at what happens to Pensions in the budget, I think that whatever they do will not be introduced until April 2025 at the earliest. Suffice it to say, I will retire if the changes are severe enough. And that will bring another unwanted consequence for Labour, my wife will retire too (adding to the STEM teacher shortage), our combined income will fall to a third of what it is now, but we will be comfortable with pension and savings, but the income taxes and NI that we pay will be significantly reduced. Like the Non-Dom debacle, Labour may find this backfires in their faces as many highly paid and highly skilled workers in their 50s and 60s decide to retire early rather than be crucified by Rachel Reeves.

[@MegaAndygo]

'Suffice it to say, I will retire if the changes are severe enough. ' Exactly the position I'm in, any severe changes definitely will back fire, same as yourselves, we could call it a day, we won't be earning what we once did, but we'll be fine, but will be contributing much less tax, much less growth (I own a business), much less employment, much less capital outlay into the economy, etc. I don't want to, but if I get punished too severely for achieving things and working hard, then I'll simply stop and everyone else loses out.... Having gone through the pain of Labour government before, I haven't the fight left in me to battle it again...

[@dereklawrence4622]

As a retired IfA this is balanced and sensible advice. This guy explains and balances his reasoning really well. Well done Sir.

[@matthewryan4844]

Tax adviser here. Indexation did help reduce gains but made the calculation much more complicated because each expense needed indexing from different times (difficult for buying shares over time). Also events like bonus issues and rebasing made the indexation run from different times from the actual date. The simplification was to increase the annual exemption to make it worth investing. Now we have no indexation and very little exemption, but the ISA exemption is a lot higher. Looking forward to lots of planning opportunities after 30th Oct!

[@matthewryan4844]

Also IHT is easy to avoid by giving assets away except your own house which is deemed to be in your estate as long as you use it. The only easy way to avoid this is have wealthy kids who buy you a new house so you can give the old one away (downsizing is a partial solution but still leaves a smaller house in your estate). Seems counterintuitive to have a tax payable only if you aren’t rich enough to avoid it. I would be happy to see a radical overhaul of IHT rules.

[@MattRoszak]

Very clear explanation of CGT, inflation, and other details one may not immediately think of. Very helpful!

[@jonathanburson4994]

Working in IT in the wealth management area if they make radical changes to pensions and ISA’s there is no way the systems, both HMRC and wealth platforms would be ready for next tax year!

[@JamesShack]

This!

[@AgileSnowWeasel]

I think a system to calculate (e.g.) indexation relief would be new for many financial companies in these areas, and the development process (in my experience of financial software engineering) would be a year at least, with devs only getting their hands dirty at the six month mark (minimum) once the rest of the business has churned on the legal, compliance and high level implementation details. w8ben took long enough, and that boils down to a question about US tax residency on sign-up forms! On the other hand, removing the code for tax free pension inheritance under 75 would be far quicker, and they already have the code for over 75, that's some tests and an if condition in some pension-inheritance-engine microservice (in reality it's 20 microservices each doing some aspect of the process or handling minor variation differences in account type or third party whitelabel system... so again, 6 months of architect investigation ...)

[@markdemariassy8685]

Hopefully the lessons have been learned from LTA Abolishment...

[@apb3251]

Whist I agree with the sentiment, which IT systems are incapable of coping with a simple change to a percentage (e.g. a spreadsheet or calculator)

[@JustinUK]

@@jonathanburson4994 she did it with winter fuel allowance

[@michaeld5888]

Has a budget ever had such an effect on the country causing such panic and despair without it having occurred yet. The despatch box they use seems to have got very leaky.

[@A-Name-101]

I would suggest to do a financial audit in preparation for any changes Ie get all account details of savings / debts / insurances / work benefits etc. That way if you do need to make a quick decision on something you don’t need to mess around trying to get the info sorted.

[@yamyam3905]

I always did well under a Tory government. They allowed me to take 25% of my private pension and they raised ISA allowance to £20,000 . What's not to like .

[@caparn100]

Farms and forests are frequently used by wealthy hedge fund managers and bankers as a means to transfer their wealth. If these assets were excluded from inheritance tax exemptions, they might initially be concerned. However, within a few years, they would likely move their investments elsewhere and establish trust funds to achieve similar wealth transfer benefits.

[@tonyjones9051]

Thank you for this timely and helpful commentary, nicely counterbalances the hysteria from other quarters.

[@kenniththomas2167]

Never in the field of British politics, have so many hid behind their sofas on budget day., inflicted by the few. 🤔

[@TheGaffer69]

Great advice, I’ve seen 1st hand the stress this has put good working people under and your video shows the dangers of getting caught up in the noise and speculations, well done James.

[@chrisbarlow5968]

Great video. Second time I've watched it after Toby Newbatt referenced it in his broadcast released today.

[@stephenbrown4211]

One change that we can be sure on is there will be an attack on average Joe who lives in the countryside. Budget cuts to affect education, policing, Health and transport. Then destroy the countryside with house building and massive solar farms which will destroy hedgerows, woodland and habitat. (I’m not against wind farms, they cause less damage). But they will not improve infrastructure. They hate rural area as they think it’s all green wellies and Range Rovers. It biggest threat to working class rural people will be fuel duty where working class have to travel anywhere by car because public transport is always cut.

[@TheNobbynoonar]

The UK has the highest overall taxation in over 70 years. Introducing more taxes will not help anyone in the long run. Maybe, just maybe, the chancellor should have a good hard look at why taxation is so high in the UK. A nation cannot tax itself to wealth.

[@derekr1113]

Please consider which Government managed to put you in this position - not the current one.

[@C-L66]

I’m one of the lucky ones about to retire one month in to the next tax year so will be very interested in any of these changes, I do have the option to start most of my pensions before then, so I feel I will be ok. As you stated when people are this close surely they would not change things to completely mess up finances plans that have been made over years and years!

[@maxodidily]

If the goverment makes capital gains tax unreasonable or ruins ISAs with a cap or lowering the amount you can deposit each tax year, they can enjoy taxing £0 gains.

[@nev-dd9jq]

exactly. My CGT bill will go from 'something' to 'nothing' as I wait it out for these clowns to be voted out.

[@BLOCKsignallingUK]

Capital gain is a reward for taking a risk. If it is taxed heavily, there is less incentive to take that risk, and so less tax collected for the government. It is self defeating.

[@zlatysmola]

💯

[@willspeakman2461]

Same here. 20% is already pretty extreme considering I paid tax when I earned the money and I will pay it again when I spend it in the economy. I personally think it should be taxed 10%.

[@silvershadowjsh]

Yeah stress and confusion pretty much sums this up- guess we'll finally find out tomorrow...

[@michaelboyle5563]

Thank you James, I am 67 and retired at Christmas last year, must admit i was thinking of cashing in the 25% tax free before the budget, think I will take your advice and wait, there is a lot of hysteria out there !

[@andrewnicholls9519]

If u can take a tax free 25% sum then take it now and enjoy

[@_Hollie_]

@@andrewnicholls9519it may screw him over in the future though, especially depending on his situation and future needs. In most cases you actually shouldnt take the full sum, especially if you have other investments like an isa you can take out of. That being said this is why its best to talk to a qualified financial advisor specialising in pensions, especially for retirement when you can essentially screw yourself over for the last decade of your life when done wrong

[@1414141x]

I am concerned about potential rise in CGT because I have a couple of buy to let properties I will probably sell pretty soon as I am now retired. The government just too away the 'taper relief' which gradually reduced CGT you would pay on property sales over the years. This was a massive blow. They have also reduced annual CGT reliefs - now it is only on £3000 which is a pittance. If they rise CGT substantially on property sales then they will likely get less money coming in because people will resist selling properties. It is a historical fact that high rates of CGT produce less money for the HMRC.

[@axelmacdonald6422]

Essentially keep calm and carry on

[@acxezknightnite1377]

Typical. I was planning on taking a 25% tax free lump sum when I turn 55 in 2 years. I always seem to have plans such as this scuppered. WTF?

[@twig1the1dog]

Spent an hour yesterday listening to a client stress and panic about all the potential changes that may or may not happen. I concluded with read less news and enjoy life a bit more. There is always a budget coming, always a market correction, always change. We adapt and make best decisions with confirmed information in hand

[@bobbysega3839]

Spot on.

[@terryh8421]

Labour have said a lot, I have a problem believing anything they have said.

[@ameriscm7351]

the CGT not being applied in respects to inflation is the equivalent of fiscal drag on income tax right?

[@nikossolomou9507]

I don't think you can expect any time to plan for the changes/rises as you suggest at 1:50 because this government pulled the rug out from beneath everyone on the Winter Fuel Allowance which was announced last month, with immediate effect. The vast majority of pensioners will be affected but have had NO time to try and save over the summer months to prepare for the loss of this allowance.

[@wakeywarrior]

Just paid the full £60k gross of 20% into the pension just in case…… The tax free cash will be evil if they reduce that. They need to ensure that anyone who has paid in so far gets at least the current sum of the fund at 25% cash free.

[@tantramantra1]

Luckily they seem to be reversing course on pensions as it will antagonise public sector workers. The previous Govt reluctantly admitted it had over taxed senior doctors and other upper echelon public sector workers. So going after their pensions right now is really abrasive. It would only make the best senior people retire early or emigrate, totally counter productive. Same mistake as going after landlords because it ends up hurting all the tenants too. Or going after private schools, which ends up costing the taxpayer more.

[@filo2517]

The one rumoured change on pensions which I think is maybe more likely than equalisation of tax relief, is introducing employers NI on company pension contributions, that would pretty much wipe out salary sacrifice schemes, but could be managed so as not to affect public sector employees (unlike equalisation of tax rates)

[@MrDuncl]

I was just thinking about that myself. On the subject of Salary Sacrifice there are loads of EVs at work since you can lease one on Salary Sacrifice. I could lease a very nice EV for half of what I am paying into my AVC to avoid higher rate tax.

[@abee4199]

The (world economic forum) knows what’s next even if the government doesn’t know.

[@MaidanRustle]

Why is no-one talking about tax haven economics? Close the tax havens if you actually want to make up the 21 billion deficit.

[@FelekeFerhiwot]

Very clear explanation of CGT inflation and other detail one may not immediate think of labour

[@mw3586]

Maybe a simplistic view, but this seems like once again it's purely the middle class who are going to be effected. The rich will avoid the taxes and the poor Wont be impacted. As someone who started with nothing and has worked for everything I have it's hugely demotivating to think I'll get less from investments, less pension relief... Why did I waste my 30s and half my 20s slogging away and being prudent? May as well have not bothered.

[@thomasjohnrobinson4658]

Pensioners who have little income except their pension which is just over the Threshold will be affected dramatically.The winter fuel allowance come before the onset of winter,the pension increase is 3 weeks after the start of spring.How can he justify this,or maybe he can start the pension increase on November 1st.

[@jasminehasan890]

Middle class is vanishing everywhere. Other countries too.

[@firebyrd437]

Ridiculous comment. There's the 2 child benefit cap, pensioners losing their WFA, and the sick and disabled targeted as well. If the wealthiest are targeted, they're joining the list, but it's the poorest so far that have been targeted. Why should the middle class be left out, it seem fair to me

[@ollyrukes]

I feel like you missed the point of this video - we have no real idea what is going to change and speculation is pretty pointless

[@willywest1493]

Brilliant James - definitely a wise old head sitting on those young shoulders of yours 😊

[@kevatnorthfield]

They know exactly what they gonna do They're just not going to tell you

[@MrDuncl]

With good reason. Nigel Lawson pre-announced changes in MIRAS causing a stampede to buy a house (my neighbours sold in eight hours) followed by a massive bust in house prices when new buyers couldn't get tax relief.

[@Vacheron7]

Thanks for another great video James. Re GCT, I'm in the tricky position of having a significant amount of shares purchased via our company SAYE scheme and most of which are in a GIA. They are currently trading at 4x the original option price, with most analysts still rating them a "strong buy", so your tip about using the Bed and Breakfasting rules as a hedge by Selling before the announcement but retaining the option to buy back after (but before the CGT has crystalised) is an inspired use of the rules! Bravo :)

[@chrissharratt2563]

The Conservatives always (privately) dropped hints to journalists about nightmare scenarios that they might do, or that were being considered. Journalists reported these speculations in the hope of being first to break the news in advance. When the actual actions were announced, they seemed tame in comparison to the speculation, therefore leaving the consumer to think they had good news from the budget announcements. Looks like Labour are doing the same thing...

[@mw01908]

They also leak policy to test public reaction. If it's bad they don't do it or tweak it

[@mikes7218]

Is it though! The majority of the press doing this scaremongering is Tory owned. I would say it’s more like Labour are saying we need to take action, the Tory press is then extrapolating, guessing worst case scenarios in order to scaremonger to whip up even more ill feeling, and add to the sense of hatred against the Labour Party and anyone that didn’t vote Tory or Reform. Either way, it’s all just a game, and we are all being played. Best thing is to wait and see whatever they do actually announce in two weeks time! It won’t be as bad, as if they did half of what the Tory Press are suggesting the country would go bankrupt, which kind of defeats the objective!

[@chrissharratt2563]

@@mikes7218 Yes. I have literally just read an article in a Tory paper describing how a lawyer is “snowed under” with property transfer (IHT) requests, and a “raid” on taxes such as CGT and IHT. “Rush to beat tax rises”… total speculation and no evidence to back it up. As James points out, some of the admin behind making these changes would take (at least) months to implement. We are being subjected to complete scaremongering.

[@mikes7218]

@@george6977daft question! I said the majority of the press doing the manipulation is Tory ‘owned’. I still stand by that. The printed press is dominated by titles and by far the highest circulation (Mail, Express, Sun and Telegraph) that are or have been right leaning. The papers that are supposedly in the middle (Times, Standard) also support Tory in an election, only the Guardian and Mirror are considered left leaning (with a fraction of the circulation). The readership on right or supposed centre printed press are far higher than left, and hence the stories that I mentioned that are scaremongering are coming predominantly from them. PS- the Sun, as you say is an interesting one, flipping over to support Keir, but it is NOT a left leaning paper by any means. It’s still a right leaning paper that decided it couldn’t support Tory just before this election. Which pretty much sums up my politics!

[@jaaguitar]

Maybe not let so many people drift into become higher rate taxpayers then? If you forgot to account for the pensions thing. Raise the thresholds!

[@kjeksklaus7944]

broader shoulders to a government is £30k a year. To have a tax code that treats people earning £52k the same as £100k shows it's insanity.

[@hitchjack]

You do realise if you earn £52k you only pay 40% on the 2k right? You still get your tax free allowance and most of your earnings at 20% in addition you get to keep all your child benefit.

[@kjeksklaus7944]

@@hitchjack yeh, of course, so the government takes 40% of every pound earned over £52k, thats just not right, add in NI and thats close to 50% of every pound gone to the government because you are a 'high' earner. Add in to that the decimation of savings interest, gains etc etc etc. My point is the government thinking £52k is a high salary and worth taxing the same as someone on £100k is nonsense.

[@manapause]

Try 125k with 60+ effective tax 😂

[@markianross]

Which government created those tax bands though? It certainly wasn't this one...

[@guyr7351]

@@kjeksklaus7944 don’t forget the sub £52K earners ( vast majority of workers) are also paying NI and lower paid workers have less spare cash to cover sudden expenditures or the still high fuel bills. As someone who went from about £60K a year to £30K a year salary I know which wage cheque I preferred

[@JoshPalmer21]

I really appreciate this level of detail! I recently got hit because I didn't fully understand the UK tax system.

[@malcolmjohnson9481]

If this government touch pensions it will be the last thing they ever do ,I will not vote for them

[@NumptyBumpty-w9j]

The Turkeys realising they voted for Christmas.

[@Gold.Circle.]

🤡 voting for any of them thinking it changes anything

[@eddieoconnor8560]

Did you change your vote when the Tories reduced massively the lifetime allowance, reduced the amount higher rate tax payers could pay into pensions to £10,000. I’m guessing not

[@Black-Circle]

@@eddieoconnor8560 voting does not work

[@neilhilton35]

An excellent and balanced overview of the fiscal debate and speculation. Well done.

[@Chipchap-xu6pk]

I am sick of these taxes on being born after 1970. So many pension benefits for the older generations are being taken from others. We need to start taking inter-generational fairness into account.

[@robertmarsh3588]

Please tell me the significance of 1970. I was born a few years before that and I can't see any difference to someone a few years younger.

[@tone.1]

Personal pension age uplift to 57 from 2028. If you were born after April 1971 this will affect you……there’s probably more things like increased state pension age too. I reckon the post 1970 born people will dip out on thousands of pounds of benefits earlier generations enjoyed….🧐

[@guyr7351]

@@tone.1well I was born in 1960, siblings born earlier. We have seen state pension age raised to 65 for women, then 66 and soon to be 67. Messing around with state pension with SERPS, companies not having to have pension scheme, auto enrollment. The one factor of companies having to offer pensions and auto enrolment means that someone who is 40 now has a much better chance of ensuring they build a substantial pension pot on top of any state pension.

[@kaymilstead4374]

Doesn’t every generation think that ?

[@mikewallace1723]

@@tone.1think you mean 67. That’s not true I was born a few years before 1971 and state pension age is 67 for me.

[@draftsmann]

Many years ago- late 1980s if I recall- there was a rumour that classic cars would be brought within scope of capital gains tax. There was talk of someone, as a piece of pre-budget tax planning, transferring a Ferrari or some other high value supercar, to an insurance company in the Isle of Man, as premium for a single premium “investment bond”. This would have taken any gain on subsequent sale of the car out of CGT, if such a change had been made to the tax rules. Tax on the sale would’ve been deferred until the investment bond was cashed in, and could’ve been avoided altogether if in the meantime the owner had gone to live overseas. Except the CGT rules were never changed to include cars. And for good measure the classic car market fell, leaving the investor paying fees to the insurance company based on a percentage of the higher value when the car was first transferred. I have no idea what happened but assume that the structure was unscrambled, the owner having paid probably a fair amount of fees for nothing. The story may well be at least in part apocryphal- but even if it is, it’s still a fair cautionary tale about the risks of panic tax planning based on rumours.

[@pmbpmb5416]

Unfortunately the potential tax tail is wagging my tax free pension dog and against my wishes otherwise but talking the 25 per cent now .

[@colinfieldgate4719]

No doubt you have worked out where you will put it to still grow but not pay any tax?

[@pmbpmb5416]

As it happens I have , it’s fairly straightforward under the current regs .

[@trader548]

Me too. If there are huge changes to the 25% tax free lump sum, and I didn't act, knowing they could quite possibly stop me taking it, I would be furious with myself until the day I die.

[@pmbpmb5416]

I think James is likely correct the upheaval an instant implementation would cause makes it unlikely but I can not take the risk , you may at an extreme wonder if they would make it a little retrospective but that’s a real stretch . They should have learnt something from the Winter debacle but who knows ?

[@bobbysega3839]

@@pmbpmb5416 And what if those change too?

[@stephenpritchard5296]

Thanks James

[@andrewharris3900]

Removing the death before 75 tax free inheritance would be a kick in the balls. I've been paying extra into my pension so that it is a kind of life insurance if I pass away early. But hey, thieves are always going to do what they do best. The speculation isn't helpful but we know one thing for sure; they'll have more money to dole out in exchange for votes and we'll be all the poorer for it.

[@caio5987]

I think what you’re doing wasn’t the intention when the concept of a pension and retirement were invented

[@andrewharris3900]

@@caio5987 finally the government failed in a beneficial way, they accidentally created a product that works better than intended, so of course they have to 'correct' that error.

[@ollyrukes]

Why though? By paying in you have avoided the income tax on that money. If you allow people to inherit that tax free then that money will have never been taxed. Unfair on people who do pay income tax

[@andrewharris3900]

@@ollyrukes Everyone can do the same thing, that’s the point, the government wants people to save for their retirement and so gives them incentives to do so. It would only be unfair if not everyone could do the same thing. I’m all for making a completely fair tax system and abolishing pensions. A flat tax for everyone from the very first £ earned. It’s only fair that we all pay the same rate of tax, why should some people pay a lot of tax and some pay none at all?

[@ollyrukes]

@@andrewharris3900 not everyone can get the same tax benefits of saving for a pension though because not everyone has enough money to save that well. Better-off people can save more, get more tax credit.

[@brahmsnliszt]

worth noting that you get 30 day period to change your mind if you are taking your 25 pct tax free portion for the first time, so apply for it and you have a free option depending on the 30 Oct

[@mattroguesmith]

Good video, thank you. But… one thing we can all likely agree on is that investors, business owners and higher rate tax contributors will be screwed over. With the vast majority of tax being paid by the top 10% earners, many of whom are planning to leave the UK or shut their businesses, this government is going to start a stampede of wealthy people leaving these shores. (We all know it’s already started)

[@MrBizteck]

AHH they have been threatening to leave for YEARS. Funny how everyone thinks leaving is like hopping into a taxi easy and waking up in Dubai. I've lived there is a Shthole ! Too warm too fake and a horrible place to have family. Anywhere else in Europe will tax you double than here. The USA maybe but then if your going to go you will probably leave anyway even if no changes are made. Many MANY will come back within a year or two.

[@maverick6631]

If they pay next to bugger all to live here now, then they won't be missed.

[@bobbysega3839]

I rather think you're believing the scaremongering from The Torygraph. "...top 10% earners, many of whom are planning to leave the UK" Really? Who? How many is many?

[@mattroguesmith]

@@maverick6631 top 10% pay more than 60% of all the tax in the entire country. People mistake the top 0.1% who are not PAYE with the top 10% all the time.

[@mattroguesmith]

@@MrBizteck Spain - Beckham law is what most of the wealthy that I know of are using - about to use.

[@TejashPatel-z2r]

Can we stop saying a labour have a mandate for change. They don't. They have alarge majority because people wanted the tories out.

[@bingbong7316]

20% of the electorate is not a "mandate" for anything.

[@dog_chasing_cars7576]

33% researchbriefings.files.parliament.uk/documents/CBP-10009/CBP-10009.pdf - page 9

[@bingbong7316]

@@dog_chasing_cars7576 that's 33% of the 60% who voted, i.e 20% of the electorate.

[@dog_chasing_cars7576]

@@bingbong7316 if you don't vote you aren't counted. Sorry mate. The other 60% is hypothetical. It's disturbing that so little people in the UK vote. But you get what you vote for and if 60% of the UK doesn't vote. Then it's 33% and there is nothing you can change about it. But at least stop slapping up figures which aren't accurate. It's the equivalent of fake news. Especially in a place that is trying to help people with giving them the truth about the budget and people's livelihoods and money

[@wineweasel]

Yep they only won because people didn't vote enough for anyone else

[@BocaoZ]

Those who didn’t vote has no right to contest

[@intruder313]

I shall simply wait and see (and then look for updates here after the Budget!)

[@UKRR]

Thanks James. Very reassuring comments

[@sparky6996]

Uk absolutely sucks

[@BocaoZ]

@@Capri-x8m wrong

[@acxezknightnite1377]

I agree. I’m outa here as soon as I get my assets here sorted out.

[@sparky6996]

@@acxezknightnite1377 I left pre brexit and my life is so much better. I really hope the uk fixes itself. I'm sure it can

[@Prasutagucaster]

Hmmm until you’ve lived elsewhere you don’t realise how well the UK is run. The media is the UK’s worst feature, we no longer have great journalists, news reporters or intelligent presenters. Hence like the USA the UK media has followed suit and is totally dumbed down.

[@Prasutagucaster]

@@sparky6996hope it works out for you. Hopefully you’re outside of the EU where it’s totally shambolic and corrupt in certain countries

[@IrenaHájko]

f Labour's tax plans go through, it could have a huge impact on pensions, ISAs, and more. Definitely something to keep an eye on. Thanks for breaking it down so clearly!

[@bobbysega3839]

What plans? Who knows what the plans are other than Reeves and her team.

[@FirstMM]

Making important (and, as I understand it in the case of tax free cash or ISA withdrawals, irreversible) financial decisions, based on speculation from media sources with clickbait headlines but few facts, has a minimal chance of a successful outcome. Labour are very clear what they want to achieve, but we don't know how they will try to get there until the budget.

[@Simon-uj6qo]

You make perfect sensible sense. Thank you

[@Themanincumbent]

Tax revenue has risen from a historical average of 33% ish to nearly 50% of gdp since 2000. If the government still cannot balance the books at this level of taxation then something is very wrong indeed. They already in the territory where rich people( who pay the bulk of taxes) are leaving the country in their thousands. This means tax revenue will reduce and they will put taxes up for everyone else. Soon having a full time job will mark you out as rich.

[@kayoedowner6711]

I have recently spoken to one of your colleagues at Nova, I’ve decided to wait until after the budget before going any further.

[@JamesShack]

You're in good hands then! Out of interest, what are you specifically concerned about regarding the budget that would affect your decision of whether you should work with a financial planner?

[@CRAZYCR1T1C]

The UK is risking losing all of its hard working tax payers and the only people left are on some sort of benefit or welfare. There is no reward for investing here.

[@davidmaslen6063]

I don’t think that you can describe anything to do with CGT as a “raid”. You only pay CGT when you dispose of a chargeable asset. If you don’t want to pay it, don’t sell it.

[@namaewa-vx5rl]

discourage investment on personal level only means the public spending will goes up, more people claim benefits because you cant help yourself out anyway. whatever this govt will do will only damage the economy in long run.

[@GrantThomas]

So no raid on Pension Contributions or the tax-free lump sum, but with pension pots now being brought into Inheritance tax from April 2027, what do you think the impact will be? Will more people retire early to use the pots up? Should ISAs first now be the approach until our £20k annual limit has been used, THEN pensions? Also interesting that DB pensions not impacted by this IHT rule, so MPs pensions all nice and safe! There could even be an argument to now take the free lump sum an move into an ISA (£20k per year) in one go to reduce the size of the pension pot and IHT liability from 2027.

[@cannonfodder1198]

appreciate the UK focused content, subbed :)

[@madeleinebell559]

For many years wages did not go up in line with inflation. I don't recall anyone suggesting income tax should be paid taking inflation into account.

[@JamesShack]

So you don't think income tax bands should rise with inflation?

[@madeleinebell559]

@@JamesShack No I'm not suggesting anything of the sort.

[@JamesShack]

@@madeleinebell559 But they usually do. Until Jeremey Hunt froze them until 2028.

[@martinarscott3524]

I committed a few months ago to retire at the end of the year, I'm literally locked in, if Labour mess with the tax free amount of my pension I'll be completely stuffed.....

[@acxezknightnite1377]

The best laid plans…

[@chrisduffill5248]

Super reasoning of what to do , given the what we don’t know and how this could cause chaos with the finance world if she did something stupid , let alone another nail in there chances of keeping themselves in Parliament for only one hit…

[@333nickmcd]

Growth. That should be the only focus All of these (potential l) policies are the equivalent of trying to get rich by shopping at Lidl instead of Tesco

[@palmtree-e2l]

100% agree. I have heard nothing about their supposed plans for growth. They need to borrow to invest and promote growth in our moribund economy but they've ruled out any borrowing. They should also rejoin the customs union and single market on whatever terms we can get, beggars can't be choosers. But they're too scared even with a huge majority and the polls showing 60/40 in favour of rejoining. Hopeless.

[@KelticStingray]

There's is no growth. We are pensioner island. We rightly should be against immigration but as a society we are even more against young people buying homes or starting families. The future looks very very bleak.

[@tommaguzzi1723]

I read that Churchill once said something like, " trying to stimulate economic growth via increased taxation is like trying to pull yourself out of a bucket of water with your bootstraps"

[@alrightdave6135]

​@shellyperera2010 yes dear. Look at how well the eu is doing.....

[@onlineo2263]

​@@alrightdave6135 the UK had a "lost decade" from 2010. Tory austerity led to remarkably low growth of the UK economy compared to other developed nations. As such we are now playing catch up from a very low base. We need to outperform other countries for the next 10 years just to catch up to our gdp position. We went from having the 2nd strong economy in the g7 to having the 2nd weakest economy.

[@pataleno]

Apparently around 9000 high earning Millionaires have left the country which is double the amount this year. Quite worrying if we have a money drain. Labour are not helping themselves.

[@MrBizteck]

Source?

[@pataleno]

@@MrBizteck Henley & Partners' latest Private Wealth Migration Report 2024 predicts that 9,500 millionaires will leave the U.K. through 2024, double 2023.

[@smp5577]

@@pataleno And they have business interests in this prediction, go figure.

[@davidpearson243]

@@pataleno MRD applies here “They would say that wouldn’t they”

[@pf844]

Since they pay little or no tax, it’s no loss

[@malcolmsmith2083]

at 10:30 James suggests that people could pay more tax on accessing their pension than the relief they received. Actually, you can withdraw > 100K in a year and pay less than 20% tax (assuming no other taxable income). The 25% tax free element does the heavy lifting.

[@philipdrew1066]

The government have caused 3 months of unnecessary stress and worry

[@leejames1792]

Not like we were not warned of what Labour were all about, and that is not me being a fan of the Tories either.

[@1292liam]

yep, pretty dim isnt it

[@allthegearuk]

​@@1292liambetter than it coming as a surprise

[@swngwyrdd3552]

Still better than the preceding 14 years of unnecessary stress and worry

[@backgammonbacon]

Stress and worry for rich people...who cares.

[@fazerider9287]

My own suspicion is that NI contributions will be extended to pension income. Setting the threshold above the basic state pension and excluding any additional state benefits from the calculation would be an effective way of raising tax from well-off retirees without breaking the promise not to raise tax from earned income (though I accept that Governments break promises all the time anyway).

[@Chanesmyname]

At the very least you know what you get with the Tories and voters were warned, over and over, about the danger of a huge Labour majority.

[@kiljaeden7663]

So vote for the guys who have run things into the ground for 14 years and have no policies other than "Brexit means Brexit", "Stop the boats" , culture wars and constant infighting.

[@OneAndOnlyMe]

Torsten Bell of the Resolution Foundation who proposed the idea of an ISA is now a PPS to the Cabinet, so he most certainly is influential. I think if the ISA cap is introduced, then that would be one of the changes that would need time for systems and processes to be updated so cannot be implemented overnight. That woule give people time to take money out of ISAs and just pay down their mortgages instead.

[@fjrxj1134]

What about the possible rise in road tax per mile scam. I got off my butt to find work and travel miles each day. If this comes in, it won't be worth going to work. Whoever voted for labour has got what they deserve, This lot will destroy the country. God help the working-class pensioners

[@acxezknightnite1377]

The country didn’t vote Labour in, they voted the conservatives out. Massive difference, but same result. We’re screwed.

[@bobbysega3839]

It's just speculation. If they did bring it in, when do you think it will be ready by? Think about the investment needed in roads, the amount of data storage and IT systems needed to track 40million vehicles, every day... Not to mention the kit needed in each and every vehicle. And have they even trialled it anywhere? Does the current tech even work? In theory it does, but for 40million vehicles? If it does happen, it will likely be limited to EVs only at first, to compensate for loss of fuel duty. Even then, it's years away.

[@anthonyfaucy2761]

I regret voting for Labour

[@scottsmith1413]

Unfortunately, Labour said many things to get into power then did the dirty!

[@FirstMM]

Examples please.

[@scottsmith1413]

@@FirstMM Winter fuel, Starmer gave a huge interview waffling on about meeting a lady of 86 who could not heat her home if she bought food! And how this was unacceptable. Let us start with that one.

[@FirstMM]

@@scottsmith1413 Not sure I see your point; Labour are expected to announce that that people who don't need financial support will get less financial support, whilst people who do need financial support will get more financial support. The devil is in the detail, we will have to wait and see what they actually say, how they say it and when they say they will do it.

[@sid35gb]

Lots of pensioners who qualify for pension credit haven’t claimed and would be better off and will still get winter fuel allowance.

[@scottsmith1413]

@@sid35gb Labour said 4000 would die if the payment was removed! You cannot defend the indefensible. stop trying!

[@DanSnipe-k8o]

What happens when people move abroad for a year, never to come back, and then sell whatever? Do they still get hit by CGT, inheritance tax if you live abroad?

[@richardjo01]

Well done everyone who voted Labour in absolute shambles of a government

[@forest_169]

What’s the point of saving for a pension as all they do is take tax off you you work 40 to 50 years paying tax only to be taxed when you need the money it’s point less there is no incentive to save.

[@OwenFlex]

My retirement account has gone down by 13.7% in the past year due to rebalancing I did out of fear uncertainty and doubt. What are best alternatives to take in other to secure a financially free retirement and achieve ultimate peace? I don’t want to fail after years of working hard.

[@John-ww2fv]

If you want to rebuild your portfolio by yourself, without help, I will tell you it is near impossible. Even NewRetirement and co can’t do the job of an FA with expertise, a large following/client base and experience. Vet and hire one and begin to develop a rapport.

[@GibsonJames-gr3on]

You honestly should hire a private advisor, they are reliable. Look up online for a for one, That way you have an expert perspective and contributions

[@SeanJohns-ze8ie]

How can you hire someone like that?

[@GibsonJames-gr3on]

NORA JEAN ERICKSON is an example, competent and ready to help sort out issues

[@GibsonJames-gr3on]

She is very well known in the financial sector. She not only understands the intricacies of the stock market and real estate but also has insights into navigating the financial sector for potential gains.

[@vasugupta1]

If they Raid ISA's and LISA's it probably time to move