[Finance] Tax Rates Going Forward

[blue-shifted]

Personally I would like to see a big hike on inheritance tax to help pay for this.

I know this is unpopular in some quarters, but not only does it impact those who need the money least of all, but it also does more for fairer redistribution of wealth than any other tax. Most of us have kids, and yes our future inheritances and theirs would be impacted by this, but at the end of the day they have their whole lives ahead of them and really don't need the leg up that a hefty inheritance would provide. Especially at a time when food banks are busy, and Brexit was likely to hit the economy (at least in the short term) and that was before Covid 19 absolutely decimated it.

And, as has been said, IHT doesn't raise that much. You would have to drop the Nil Rate Band to about £200k and remove spouse exemption to make much of a dent.

I'd love the see the tabloid headlines the day after they announce that one.

 

[Weststander]

The Scandinavian taxation system, which McDonnell kept quoting, is adminstered in a totally different way to the image he spinned in 2019. In essence everyone in Sweden, Finland and Denmark forfeit a huge proportion of their income in national and local taxes. They are happy to do it because they trust politicians per se to spend it wisely, giving them amongst other things envied welfare systems.



Taxing high earners (those who do the honest thing and are the UK tax system radar) until the pips squeak, will not give the per capita tax take of Sweden etc. As in those countries, here if the ten of millions across in the middle categories participate, we would raise the revenue.

But, we’re a funny nation when it comes to taxes, always have been. People on £30k, £40k, £50k, £60k and so on, do not in the main want to lose any net pay. Those of us on NSC who say we would to finance a better NHS and so, and really mean it, are I feel the exception.

 

[NooBHA]

main problem with hitting IHT is its easily avoided while unduly politically sensitive. people will simply sell or otherwise distribute thier assets in their lifetime.

That's OK .

If they are daft enough to sell or transfer their property which in all likelihood would be their largest asset in their lifetime then the Treasury will get SDLT from the recipient

And if they continue to stay in the property the new owner is taxable on the Commercial Annual Rental Value of the property every year that they live there.

So quids in for the Treasury.

 

[Creaky]

That's OK .

If they are daft enough to sell or transfer their property which in all likelihood would be their largest asset in their lifetime then the Treasury will get SDLT from the recipient

And if they continue to stay in the property the new owner is taxable on the Commercial Annual Rental Value of the property every year that they live there.

So quids in for the Treasury.

There is no SDLT on property without a mortgage that is gifted - likewise there is no tax regarding a commercial rent if only part of the property is gifted and the original owner remains in the property - however the 7 year exemption period will only start when rent is paid, (and taxed), or the person the gift is made to also lives in the property.

 

[Blue3]

Would be nice if the likes of Amazon, Starbucks, Google, Vodaphone etc were compelled to pay their fair share of tax on UK profits.

Not going to happen, obvs, so the burden will fall on those of us lucky enough to still be in jobs and our children thereafter.

The Government should just switch their internet access off from the UK I suspect that this might resolve the issue quickly

 

[Shropshire Seagull]

Loving all this: "if I were in charge I'd do this and that ..."

Here's mine:
a) abolish vehicle road fund excise duty and add 10% to fuel duty to compensate - yes, the army of civil servants employed to administer vehicle excise duty will lose their jobs but the salary saving will be a plus.
b) legalise prostitution and then tax hookers at 40% - they must have a weekly medical MOT to confirm healthy & clean - they'd be able to advertise their services on the internet [inc price list] - money saved by police [vice] and resources redeployed to other crimes- may also reduce sexual assault crime if "relief" is more accessible [win/win/win]

Bound not to be everyone's cup of tea but if raising government income is the objective, these would be simple starting points as "every little helps ..."

 

[Tim Over Whelmed]

Loving all this: "if I were in charge I'd do this and that ..."

Here's mine:
a) abolish vehicle road fund excise duty and add 10% to fuel duty to compensate - yes, the army of civil servants employed to administer vehicle excise duty will lose their jobs but the salary saving will be a plus. (and will mean those that use the roads more pay more, seems fair)
b) legalise prostitution and then tax hookers at 40% - they must have a weekly medical MOT to confirm healthy & clean - they'd be able to advertise their services on the internet [inc price list] - money saved by police [vice] and resources redeployed to other crimes- may also reduce sexual assault crime if "relief" is more accessible [win/win/win] Would this be tax deductible though, providing you kept the VAT receipt?

Bound not to be everyone's cup of tea but if raising government income is the objective, these would be simple starting points as "every little helps ..."

...... or just abolish cash, that would bring more people into the earnings calculation and fairer for all.

 

[Machiavelli]

It is in the Tory Party's DNA to cut taxes. Higher taxation is the biggest stick they beat Labour with. Johnson's manifesto pledges to spend, spend, spend and the results of Covid-19 proves - if any further proof were needed - they've lost the austerity argument. If they raise taxes they will have lost the tax argument as well, and as I said earlier if you raise taxes you make Britain a less attractive place for foreign investment, and that is something they can ill-afford as we approach the end of the transition period in just over 7 months.

Great previous, multi-pointed post. I'm not entirely sure it is in their DNA to cut taxes. They accepted high taxes 1945-79, it was Thatcher that shifted the ideological approach.
The argument on taxes, the size of the state, etc is heading in one direction. It's something that even that quartet of Thatcherite thinktanks -- the IEA, Adam Smith Institute, Policy Exchange, and the Centre for Policy Studies -- now accept. What's more interesting is that they've all done it simultaneously. It's as if they're thought police that all work in the same building ...

... Oh, they do all work in the same building.

 

[Machiavelli]

This - the last thing that the lenders want is for the debt to be repaid.

The majority of the U.K. National Debt is owed to UK based financial institutions, corporations and pension funds. Roughly 75% last year.

Exactly. It's why Japan's debt to GDP is north of 200%.

 

[schmunk]

Loving all this: "if I were in charge I'd do this and that ..."

Here's mine:
a) abolish vehicle road fund excise duty and add 10% to fuel duty to compensate - yes, the army of civil servants employed to administer vehicle excise duty will lose their jobs but the salary saving will be a plus.
b) legalise prostitution and then tax hookers at 40% - they must have a weekly medical MOT to confirm healthy & clean - they'd be able to advertise their services on the internet [inc price list] - money saved by police [vice] and resources redeployed to other crimes- may also reduce sexual assault crime if "relief" is more accessible [win/win/win]

Bound not to be everyone's cup of tea but if raising government income is the objective, these would be simple starting points as "every little helps ..."

Point of order - prostitution is legal in Great Britain (but not Northern Ireland), within a relatively narrow set of rules, and the income earned from it should be declared as taxable self-employment income.