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Pre-budget Report 2007

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Discuss.

Didn't get to hear all of it, but I liked the aviation tax proposal.

I think it is what Ryan air have been lobbying for, which is that efficient new aircraft that are full of passengers shouldn't have to pay more duty than some dirty old aircraft that runs half empty.

No doubt he has done something to make me pay 50% more tax. Most of the other budgets are like that, but thankfully we will have the STR wherewithall this year to skew our earnings and pay much less tax by keeping it in the company.

Might buy some gold within the company too. Or some Euros, thus paying even less tax. ha ******ing ha

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Discuss.

Well discuss what part? how the government is going to cut public spending meaning less jobs, expanding into the private sector. They are just coating the candy thats about to come, economic growth is revised down however its still too high, its increase in tax hitting yet again single people, and air tax hitting an easy group to increase tax.

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"Capital gains tax rate to be standardised at 18%"

"Capital gains tax taper relief to be withdrawn from next April"

Maybe the above throws an easy exit stratergy to some recent BTLs?

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Well discuss what part? how the government is going to cut public spending meaning less jobs, expanding into the private sector. They are just coating the candy thats about to come, economic growth is revised down however its still too high, its increase in tax hitting yet again single people, and air tax hitting an easy group to increase tax.

Well, I must say I was expecting a running commentary on here, hotbed of cutting economic insight that this is. But broader economics aside there were some announcements of particular interest to would be buyers I'd have thought...

"As we build more homes, we need to ensure that properties are not left unrented, unsold or unavailable for people to live in. I am introducing measures today to help bring empty residential properties back onto the market."

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"Capital gains tax rate to be standardised at 18%"

"Capital gains tax taper relief to be withdrawn from next April"

Maybe the above throws an easy exit stratergy to some recent BTLs?

I thought CGT was 40%. What's the taper relief?

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Investment on science and technology to rise to £6bn in three years' time.

Sounds OK?!

Assuming it's as easy to get as the cash available from certain current schemes, I presume the distribution method will be something like this...

"We have deposited £6bn worth of gold in the middle of the Sea of Tranquility, in a pit of radioactive sludge, surrounded by 20ft tall rabid space panthers. Feel free to take as many as you want."

(bid... not pid)

Edited by Moo

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I thought CGT was 40%. What's the taper relief?

It is, but taper relief makes it go down the longer you've held the asset. There are various other schemes for business owners as well.

His "empty houses" statement sounded vaguely Stalinist, what happens to people sitting on empty homes (or BTLers who can't find tenants?)

The IHT level being upped to £600K has well and truely shot the Tories' fox. Now they need another big idea (and to learn to keep their big ideas to themselves unless the election is actually called.)

Edited by Nationalist

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"As we build more homes, we need to ensure that properties are not left unrented, unsold or unavailable for people to live in. I am introducing measures today to help bring empty residential properties back onto the market."

So do you know what the measures were?

I had a look on the treasury site for anything of interest and didn't spot that, although I wasn't looking for anything on property, more on Arctic systems type stuff.

On the CGT changes, it could spark a rush for the exit, but the golden rule of investment is that you shouldn't use tax as a means of driving what you think is a good opportunity.

I would say there will probably be some "bed and breakfast" deals on BTL properties, such that the property is sold to a.n.other company and then bought back at the same price on the following day in order to set the bar for CGT before april 2008.

Although tbh it is not going to be a problem for some LLs if prices continue to go down. :D

Taper relief is where the longer you hold an asset, the less tax you have to pay. Which is why the private Equity bods don't immediately flip a company after doing their thang. They can hold it for 2 years and then only pay 10%, or something like that.

As you can see my knowledge of Private Equity firms is seriously deep. ;)

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I thought CGT was 40%. What's the taper relief?

It's the allowable relief against through-time appreciation of an asset, e.g. if you bought it for 100K 3 years ago and you sell it for 200K today you take off ~115 before CGT. That's not the exact %, there are tables to look at based on RPI or something.

Basically it IS quite a hit on BTL future gains so far as I can see :rolleyes:

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It's the allowable relief against through-time appreciation of an asset, e.g. if you bought it for 100K 3 years ago and you sell it for 200K today you take off ~115 before CGT. That's not the exact %, there are tables to look at based on RPI or something.

Basically it IS quite a hit on BTL future gains so far as I can see :rolleyes:

Although for the amateurs it doesn't matter cos they actually live there don't they? ;)

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"Capital gains tax rate to be standardised at 18%"

"Capital gains tax taper relief to be withdrawn from next April"

Maybe the above throws an easy exit stratergy to some recent BTLs?

Bum! Been using that one regulary to shut my companies down and trouser the lolly.

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On housing:

The Government will introduce measures to ensure unoccupied residential houses come onto the market.

Telegraph

I recon they are going to make you pay for full rates even if the house is unoccupied.

Other measures may be involved but i believe that this may be one of them

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Bum! Been using that one regulary to shut my companies down and trouser the lolly.

Ooooh I might try that one then.

Before April of course. :)

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It was. Now it's 18. An outstanding windfall for property flippers.

Until they close it next year claiming it's a 'tax loophole' because, er, people are using it. Thicky Brown has done that a couple of times already.

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Tax, less services, more tax,tax and - oh yeah tax- no changes to normal releif levels so fiscal drag will do its work again this year

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Until they close it next year claiming it's a 'tax loophole' because, er, people are using it. Thicky Brown has done that a couple of times already.

but they removes taper releif, i gues that now long term BTLs will pay a flat 18% on their gains when they sell, not much less as was the case with taper releif- more tax- yes- they/we really are in the poop!

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"As we build more homes, we need to ensure that properties are not left unrented, unsold or unavailable for people to live in. I am introducing measures today to help bring empty residential properties back onto the market."

In answer to bobthe~, we don't know what those measures are, because he didn't say. Neither did he say how he intended to extend the availability and use of long-term fixed-rate mortgages, only that he was 'putting measures in place' to do it.

I suspect that he has no intention of doing either, and only said it because it sounded good.

Excellent riposte from Osbourne, I thought - tore Darling completely to bits, and forced him to dodge the five straight questions at the end. After two years of waiting, it finally looks like we've got an opposition again.

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Bum! Been using that one regulary to shut my companies down and trouser the lolly.

What a sh*tter. I own and run my own company, grown from 2 to 15 in 4 yrs. Having provided HM Govt's economy with jobs and thousands in tax and had to work 7 day weeks, occasioanlly with no take home, pump all my own cash in it (that I was going to use to buy a house with), nearly gone bust and lost everything and now doing quite okay thank you very much, the only benefit of this sweat has been whipped off by my darling Darling in one swipe at the city boys. Cheers mate. Good job inspiring entreprenuerialism in the UK by taxing the buggers to the hilt. Oh... and the increase in Corporation tax for small compaines too annonced by flash Gordon on his last budget... I feel mighty depressed. :(

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"The theme for this year's pre-budget report is that, provided we maintain the course for economic stability that we have set, we can respond to this global environment," he said."We will do so by taking no risks with stability, no risks with unaffordable promises that put the public finances at risk."

Economic stability?

The country is sinking further into DEBT by the second - what are they going to do about this slight 'problem'?

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