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Budget 2024

B

Badger11

Member
Location
Beckenham
Country
England
A thread to share your views.

The first thing I spotted is this. Lots of other complains but to start with:

Including pensions in IHT is a tax on the private sector.

Like most in the private sector I have a pension pot which is now liable for IHT when I die. However all those civil servants, teachers MPs and other public servants get a guaranteed annuity instead of a pot. So not only do they have better pensions than us but when they die this is not an issue for them.

Nice one Angela.
 
Badger11 said:
A thread to share your views.

The first thing I spotted is this. Lots of other complains but to start with:

Including pensions in IHT is a tax on the private sector.

Like most in the private sector I have a pension pot which is now liable for IHT when I die. However all those civil servants, teachers MPs and other public servants get a guaranteed annuity instead of a pot. So not only do they have better pensions than us but when they die this is not an issue for them.

Nice one Angela.
Click to expand...
What a f***ing con.
 
Badger11 said:
A thread to share your views.

The first thing I spotted is this. Lots of other complains but to start with:

Including pensions in IHT is a tax on the private sector.

Like most in the private sector I have a pension pot which is now liable for IHT when I die. However all those civil servants, teachers MPs and other public servants get a guaranteed annuity instead of a pot. So not only do they have better pensions than us but when they die this is not an issue for them.

Nice one Angela.
Click to expand...
I am puzzled as to what your complaint is.

Your pension is effectively money set aside by you and your employer to pay for your retirement. It isn’t taxed when received, but is when drawn. I had one with which I purchased annuities on which I pay tax and which disappear when I die.

This change appears to me to only pension pots which remain undrawn when someone dies. Is it not therefore reasonable that these should then be taxed being earnings that have never been taxed?

There seems more justification for this than taxing other types of wealth which has often already been taxed.
 
A slight drop in tax on beer in pubs means 1p, yes one whole penny, off the price of a pint. This could save the pub industry. Keith Starlin does love pubs after all.
 
My concern is the effects on inflation, and rises in the minimums wage could be nullified anyway by inflation. I hope both don’t happen. We’ll see.
 
Yes this part isn’t great for growth…

Firms to pay National Insurance on workers’ earnings above £5,000 from April, down from £9,100 currently, with the rate increasing from 13.8% to 15%

And this isn’t great for ‘working people’, but they’ve got away by saying they weren’t going to increase taxes on working people…

Tax threshold to be frozen until 2028-29.

https://twitter.com/x/status/1851641658778984871
 
Wisbech Eagle said:
I am puzzled as to what your complaint is.

Your pension is effectively money set aside by you and your employer to pay for your retirement. It isn’t taxed when received, but is when drawn. I had one with which I purchased annuities on which I pay tax and which disappear when I die.

This change appears to me to only pension pots which remain undrawn when someone dies. Is it not therefore reasonable that these should then be taxed being earnings that have never been taxed?

There seems more justification for this than taxing other types of wealth which has often already been taxed.
Click to expand...
Agree, some people seem to complain for the sake of it without understanding the details.

A defined benefits/ final salary/ public sector pension essentially pays you a fix amount per year after you retire. If you die before pension age you receive nothing (although a life assurance element might kick in). If you die once being paid (whether it be year 1 or year 30) the pension stops (although the spouse might get a % depending on scheme rules).
Either way there is nothing to go into the IHT pot.

A defined contribution/private pension let's you accrue money that will eventually fund a pension (either an annuity or via drawdown). A pension pot of c£500k sounds a lot but might buy an annuity of £20k a year.

It seems reasonable to me that this pension pot, especially if undrawn, forms part of your estate for IHT.

Incidentally if you were to get divorced you pension would be included in your assets.
 
Rudi Hedman said:
Yes this part isn’t great for growth…

Firms to pay National Insurance on workers’ earnings above £5,000 from April, down from £9,100 currently, with the rate increasing from 13.8% to 15%

And this isn’t great for ‘working people’, but they’ve got away by saying they weren’t going to increase taxes on working people…

Tax threshold to be frozen until 2028-29.

https://twitter.com/x/status/1851641658778984871
Click to expand...

May i suggest you don't take any economic advice from Farage or the Reform party.

In the Reform manifesto they stated they would 'fund' their changes by making £50bn savings.

On the detail the £50bn was based on £1 trillion annual combined dept expenditure with a 5% saving.

So this would include 2 of the biggest depts - NHS and Military - both of which they also stated would rise.

I see the Farage still has time for his video messages business

 
NMPalace said:
May i suggest you don't take any economic advice from Farage or the Reform party.

In the Reform manifesto they stated they would 'fund' their changes by making £50bn savings.

On the detail the £50bn was based on £1 trillion annual combined dept expenditure with a 5% saving.

So this would include 2 of the biggest depts - NHS and Military - both of which they also stated would rise.

I see the Farage still has time for his video messages business

Click to expand...
What are you on about? It’s the post underneath it that’s the one to take note of. It lists every part of the budget. I’ll try and repost it without Farsge if it makes you feel better. Oh I’ve just tried and I can’t.

As a result you’ve just wasted your time typing that out.
 
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The £22 billion has not been backed up by the OBR.

£11.8 billion for blood infection.

£1.8 billion for post office scandal.

£40 billion needed to fix the country.

2% saving from all government departments required.

Welfare savings, crack down on fraud, including looking at peoples bank accounts.

HMRC, crack down on tax avoidance.

Minimum wage, 18 to 20 year olds £10, living wage to rise £12.21, apprentice £7.55.

Careers allowance to increase the amount they can earn, £195 per week, for a max of 16 hours.

State pension to rise by 4.1%

Fuel duty freeze.

Firms to pay National Insurance on workers’ earnings above £5,000 from April, down from £9,100 currently, with the rate increasing from 13.8% to 15%

Tax paid by private equity managers on share of profits from successful deals to rise from up to 28% to up to 32% from April.

Capital gains tax to rise, lower rate to 18%, the higher rate to 24%

Inheritance tax frozen to 2030.

Inheritance pensions to be taxed.

Benefits will rise by 1.7% in April, in line with inflation.

The cap on bus fares change from £2 to £3.

Tax on tobacco to increase by 2% above inflation, and 10% above inflation for hand-rolling tobacco. Duty will be applied on all vaping liquid from October 2026, at £2.20 per 10ml vaping liquid.

Air passenger private jets to rise by 50%

Lower tax rates for hospitality, apparently, but so far I can't find out what it is.

Alcoholic, draft but cut by 1.7%, 1p off a pint in the pub.

Abolish Non Doms.

Stamp duty for second homes to increase from 3% to 5%.

VAT on private schools.

Tax threshold to be frozen until 2028-29.

MOD to get £2.9 billion.

Local government to get increase ****

£230 million to tackle homeless.

£2 million for Holocaust education.

Scraping the low leave shoplifting limit.

An extra £3.4 billion for Scotland, Wales. ***, Northern Ireland £1.5 billion.

Extra funding to tackle criminal gangs.

£5 billion for house building.

£520m for science funding.

£2 billion for the automative sector.

£1 billion for aerospace sector.

£30 million for breakfast clubs.

HS2 funding *******

Road network, £500 million for potholes.

£1 billion to remove dangerous cladding.

11 new hydrogen projects, cost *****

£3.4 billion for warm home plan.

Social housing providers to be allowed to increase rents above inflation under multi-year settlement.

School to get £6.8 billion, £1.4 billion for repairs.

NHS to get 10 year plan, increased by £22.6 billion for day to day, £1 billion for repairs and £3.1 billion in capital budget.

Reduces the amount off the right to buy.

Overall £100 billion to be spent in the next 5 years.
 
NMPalace said:
Agree, some people seem to complain for the sake of it without understanding the details.

A defined benefits/ final salary/ public sector pension essentially pays you a fix amount per year after you retire. If you die before pension age you receive nothing (although a life assurance element might kick in). If you die once being paid (whether it be year 1 or year 30) the pension stops (although the spouse might get a % depending on scheme rules).
Either way there is nothing to go into the IHT pot.

A defined contribution/private pension let's you accrue money that will eventually fund a pension (either an annuity or via drawdown). A pension pot of c£500k sounds a lot but might buy an annuity of £20k a year.

It seems reasonable to me that this pension pot, especially if undrawn, forms part of your estate for IHT.

Incidentally if you were to get divorced you pension would be included in your assets.
Click to expand...
DC pensions come with a a built in risk, I know my pension pot took a bit hit 2 years ago and it still have not recovered. DB pensions offer security in retirement with a guaranteed income that DC don't.

How many public sector workers would willing swap from DB to DC.

And then the tax man comes along and screws the DB pensioners, nice.
 
Some of the biggest losses in tax revenue must be Amazon replacing local shops and barely paying any tax AND new shops like Starbucks also paying barely any tax. I expect bilateral action across Europe and beyond is required but where is the appetite for it? At least one crime is being committed in my opinion.
 
Badger11 said:
A thread to share your views.

The first thing I spotted is this. Lots of other complains but to start with:

Including pensions in IHT is a tax on the private sector.

Like most in the private sector I have a pension pot which is now liable for IHT when I die. However all those civil servants, teachers MPs and other public servants get a guaranteed annuity instead of a pot. So not only do they have better pensions than us but when they die this is not an issue for them.

Nice one Angela.
Click to expand...
But a civil service pension is never fully passed on upon death. There is an element ) rate that passes to spouse/partner and that is pretty much it ) there are some limited succession roghts to kids still in education but that is it.

I am never ever going to deny that a civil service pension is a good one (and yes I have one paying out soon,) but it is only on part passed to my wife on death then it's gone
 
Sunak jumping up and down just makes the budget changes look necessary.

Spending up substantially to repair public services, the 'markets' quiet due to OBR consultation, politically centrist where elections are won, as the tories lurch to the right.

Lot of things I don't like of course, but overall it looks reasonable, in particular brexit damage does not look repairable, not going to be much growth but better than nothing.

To conjure up 40 billions without breaking the manifesto pledge on tax increases for working people is pretty good.

The contrast to Truss could not be more obvious.

👍
 
Rudi Hedman said:
Some of the biggest losses in tax revenue must be Amazon replacing local shops and barely paying any tax AND new shops like Starbucks also paying barely any tax. I expect bilateral action across Europe and beyond is required but where is the appetite for it? At least one crime is being committed in my opinion.
Click to expand...
It looks like your own thread,no one else gives a 4x about the budget.It won't affect me.
 
orpingtoneagle said:
But a civil service pension is never fully passed on upon death. There is an element ) rate that passes to spouse/partner and that is pretty much it ) there are some limited succession roghts to kids still in education but that is it.

I am never ever going to deny that a civil service pension is a good one (and yes I have one paying out soon,) but it is only on part passed to my wife on death then it's gone
Click to expand...
Unless she remarries or co-habits with another partner after you, when she will also lose any right to it.
 
orpingtoneagle said:
But a civil service pension is never fully passed on upon death. There is an element ) rate that passes to spouse/partner and that is pretty much it ) there are some limited succession roghts to kids still in education but that is it.

I am never ever going to deny that a civil service pension is a good one (and yes I have one paying out soon,) but it is only on part passed to my wife on death then it's gone
Click to expand...
Unions fight tooth and nail to hold onto DC pensions and I don't blame then.

DB pensions have a built in risk which the pensioner has to carry rather than the employer and now this, it does seem a trifle unfair.
 
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