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Pre-budget Report 2007


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HOLA441
so they steal the best ideas from the tories, such as the inheritance tax one

Only because the sheeple think this is good. Dispicable! The IHT threashold needs to come down, not go up. What happens when house prices fall, will it come down then? I don't think so.

We have policies for the country dictated by those few who live in marginal seats. I wouldn't wish for a Tory Governement (ever), but I do wish we changed the electoral system to mean more people's vote counted.

The only good thing I can see out of this is he exposed one of the Tory's secret weapons -- and so it reduces the chances of a Tory Government. But otherwise this is bad... :(:(:(

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HOLA442
Only because the sheeple think this is good. Dispicable! The IHT threashold needs to come down, not go up. What happens when house prices fall, will it come down then? I don't think so.

We have policies for the country dictated by those few who live in marginal seats. I wouldn't wish for a Tory Governement (ever), but I do wish we changed the electoral system to mean more people's vote counted.

The only good thing I can see out of this is he exposed one of the Tory's secret weapons -- and so it reduces the chances of a Tory Government. But otherwise this is bad... :(:(:(

No comment on your politics but from what I've read he has raised the IHT threshold 'for married couples'. Now maybe I'm being daft here but isn't the spouse exempt anyway from IHT if the other half passes away? I'm sure I can be corrected on this one but sounds like yet another load of spin to try and sell something we already have as 'new'...???

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HOLA443

The Inheritance Tax change is a bit of a headline-grabbing red herring.

Chapter 5.76 of the detailed report says that your IHT threshold remains at £300,000, but if you die without using it, it gets passed over to your surviving spouse.

It's a good thing but it's nothing to get excited about.

Edited by doogie
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HOLA444

Credit to the Lib Dems spokesman, he asked Gordon to explain how he thought the UK would do, when our Housing Bubble bursts and what are the chances of a recession in the UK. Infact, in two sentances he summed up everything we have been talking about on this site.

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HOLA445
Only because the sheeple think this is good. Dispicable! The IHT threashold needs to come down, not go up. What happens when house prices fall, will it come down then? I don't think so.

We have policies for the country dictated by those few who live in marginal seats. I wouldn't wish for a Tory Governement (ever), but I do wish we changed the electoral system to mean more people's vote counted.

The only good thing I can see out of this is he exposed one of the Tory's secret weapons -- and so it reduces the chances of a Tory Government. But otherwise this is bad... :(:(:(

A lot of people would disagree with you. I take it you are in no danger of paying it yourself?

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HOLA446
No comment on your politics but from what I've read he has raised the IHT threshold 'for married couples'. Now maybe I'm being daft here but isn't the spouse exempt anyway from IHT if the other half passes away? I'm sure I can be corrected on this one but sounds like yet another load of spin to try and sell something we already have as 'new'...???

Apparently the IHT allowance can be transferred to the surviving partner so that on their death they get 2x the allowance.

Quite how this will work remains to be seen. Presumably the deceased would have to leave their entire estate to their partner or else the IHT allowance could be used twice? So in practice this may have little affect other than to make it a little easier for widow(er)s to remain in the family house without having to enter into complex trust arrangements with any children.

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HOLA447
The Inheritance Tax change is a bit of a headline-grabbing red herring.

Chapter 5.76 of the detailed report says that your IHT threshold remains at £300,000, but if you die without using it, it gets passed over to your surviving spouse.

It's a good thing but it's nothing to get excited about.

haha! so the labour spin machine will make sure £600-700k appears in the media to make the tories's popular pledge of £1m be not quite as attractive. And people will fall for this misunderstanding, oh yes.

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HOLA448
"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?

If this is true (I have not heard the speech) then this is HUGELY significant and will have a dramatic effect on the BtL market. Previously BtL (shown on the various shortcuts above) had a real incentive to hold on to a property for 10 years and even then expect a rather large CGT bill. If it is standardised at 18% and there is no requirement to keep the property for any amount of time then BtLers are again dipping in. The taper relief previously available went down only about 5% per year (after year three) and then halted at 60% of the profit being taxed. The optimum time to keep a property therefore equated to 10 years. I believe that we shall look back on this as being a major factor in BTLers divesting themselves of properties that they would otherwise have thought they should retain for ten years (and co-incidentaly one of the reasons that I have previously been saying that many BTLers would not sell even if prices did drop significantly).

Edited by pimperne1
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HOLA449
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. :(

Yeah, all sounds pretty dire news for someone in your position. This report appears to be continuing the last budget's theme of punishing small businesses in favour of big business.

It's amazing how little coverage the CGT change has got so far, it passed with barely a murmur in the house, but it's a pretty dramatic scrapping of a policy designed to encourage long term investment.

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HOLA4410
If this is true (I have not heard the speech) then this is HUGELY significant and will have a dramatic effect on the BtL market. Previously BtL (shown on the various shortcuts above) had a real incentive to hold on to a property for 10 years and even then expect a rather large CGT bill. If it is standardised at 18% and there is no requirement to keep the property for any amount of time then BtLers are again dipping in. The taper relief previously available went down only about 5% per year (after year three) and then halted at 60% of the profit being taxed. The optimum time to keep a property therefore equated to 10 years. I believe that we shall look back on this as being a major factor in BTLers divesting themselves of properties that they would otherwise have thought they should retain for ten years (and co-incidentaly one of the reasons that I have previously been saying that many BTLers would not sell even if prices did drop significantly).

Nice post, dupe it on this thread also ;)

CGT good or bad?

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HOLA4411
Investment on science and technology to rise to £6bn in three years' time.

Sounds OK?!

Except they are increasing bribes to foreign despot..er...I mean humanitarian aid to £9billion. Personally I would rather cut the bribing tyrants bit to £0 and boost the science and technology to £15bn

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HOLA4412

All in all, a pretty bad report for hard working would-be first time buyers:

* Massive windfall for property flippers as CGT is slashed from 40% to 18%.

* £4 billion in home improvement handouts to 'poor' home owners.

* Protection for all houses up to £600,000 from IHT-enforced sales.

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HOLA4413
"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."

We already have them. But they are little used. Goodness knows what the Empty Homes Officer does at this council. I don't even know what she looks like.

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HOLA4414
Guest Charlie The Tramp

Watching Evan on BBC News

Not so much of you`ve never had it so good, but you shouldn`t have had it so good, therefore a couple of years of austerity is on its way. :D

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HOLA4415
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.

The report talks about lenders using interest rate hedges to enable them to offer longer-term fixes. They would still need to pass this cost onto the punter though, so not sure if it would provide much benefit in practice.

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HOLA4416
so they steal the best ideas from the tories, such as the inheritance tax one

A-HA!!!......do you spot what I spot.

BOTH parties are shamelessly positioning themselves for the "grey" vote.

knowing that the boomers are fast approaching that point in their lives when they have to consider that inconvenient prospect of death,I'm sure we can see a lot more bribery thrown at the pensioners(and soon-to-be pensioners) just prior to the election.

they also happen to be the most active part of the electorate.

....I really hope people do have the sense to see through this crap,it's a one-off.Quickly reversed after the election with more fiddled figures and derisory rises in pensions.

To all the skilled people out there with a warchest of a few bob and a trade to ply,it's time to fly from old blighty and see how this shower get on without the productive young working folk to support them.It may take tough tactics like this for our politicians to wake up and treat workers with more respect.

PS NOT EUROPE!!!...THEIR BIRTH RATE IS EVEN LOWER THAN OURS!!

We are about to reap the whirlwind of WW2....60 years hence it has consequences.

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HOLA4417

I don't know much about the intracacies of this inheritance tax change, but by reducing the rate to 18% are they possibly trying to get as much cash in the coffers by encouraging buy to letters to sell their properties now. In which case this could add quite strongly to the already increasing esate agents inventories. And obviously help to drive prices down.

Cheers all

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HOLA4418
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HOLA4419
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HOLA4420
Guest KingCharles1st
All in all, a pretty bad report for hard working would-be first time buyers:

* Massive windfall for property flippers as CGT is slashed from 40% to 18%.

* £4 billion in home improvement handouts to 'poor' home owners.

* Protection for all houses up to £600,000 from IHT-enforced sales.

Soooo--- IF somehow, the present government suddenly print enough money to make the average UK home now worth 550K- ummm. they will get a lot of people in the 600+ mark wont they. So how exactly could they do that- would be a good trick...

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HOLA4421
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HOLA4422
Guest Charlie The Tramp
knowing that the boomers are fast approaching that point in their lives when they have to consider that inconvenient prospect of death,I'm sure we can see a lot more bribery thrown at the pensioners(and soon-to-be pensioners) just prior to the election.

If the Boomers get away from paying inheritance tax then that advantage will be to the benefit of their children, Generation X/Y. ;)

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HOLA4423
If the Boomers get away from paying inheritance tax

They will get away from paying it by virtue of not being alive! No Chancellor yet has found a way to tax beyond the grave, although perhaps there is a Ouija Unit working on that one...

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HOLA4424
Apparently the IHT allowance can be transferred to the surviving partner so that on their death they get 2x the allowance.

Quite how this will work remains to be seen. Presumably the deceased would have to leave their entire estate to their partner or else the IHT allowance could be used twice? So in practice this may have little affect other than to make it a little easier for widow(er)s to remain in the family house without having to enter into complex trust arrangements with any children.

Errr, you can do this anyway with a half decent accountant!

Typical Labour rip off, giving us something we already have!

http://www.avoidinginheritancetax.com/how_it_works.htm

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HOLA4425

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