Wealth tax

[BillyStubbsTears]

You are aware tax avoidance is a legal right in this country and has been for years?

What tax exactly are you increasing? We don't have wealth taxes in this country, perhaps you're confused with CGT?

CGT is what I was talking about above. It's a wealth tax if if taxes those with assets above and over what the average citizen has.

What about the bit where enablers are penalised also?

Very different things. CGT applies regardless of how wealthy you are. Make a decent investment and sell it and you'll pay the tax but you could have a 300k mortgage. You're not wealthy but still taxed.  It needs an overhaul and possibly should be bulked in with earnings, but that makes PAYE very difficult to administer and becomes extremely costly (let's be frank HMRC are very poor at running it as it is).

A proper wealth tax to me makes some sense, not many countries have it and I'd be inclined to offer breaks for investment in UK businesses too.

Really pud? then would you have a little (or big) bet with me that CGT that more of those above the average wage pay it than those below?

It's a similar situation with trusts how many in the lower socio economic bracket would have a trust?

That much is obvious but it's also the case that in the near future someone with £0 income could make a say £6k gain and pay the same tax on a £6k gain as someone who earnt much more. That's pretty daft in my view.

I think that's incorrect. There's an annual £12300 allowance before you pay CGT.

Look at it another way. Someone working 35 hours a weeks and earning £20,000 in a year would pay far more Income Tax and NI than someone not working but getting £20,000 from selling an investment.

[big fat yorkshire pudding]

You are aware tax avoidance is a legal right in this country and has been for years?

What tax exactly are you increasing? We don't have wealth taxes in this country, perhaps you're confused with CGT?

CGT is what I was talking about above. It's a wealth tax if if taxes those with assets above and over what the average citizen has.

What about the bit where enablers are penalised also?

Very different things. CGT applies regardless of how wealthy you are. Make a decent investment and sell it and you'll pay the tax but you could have a 300k mortgage. You're not wealthy but still taxed.  It needs an overhaul and possibly should be bulked in with earnings, but that makes PAYE very difficult to administer and becomes extremely costly (let's be frank HMRC are very poor at running it as it is).

A proper wealth tax to me makes some sense, not many countries have it and I'd be inclined to offer breaks for investment in UK businesses too.

Really pud? then would you have a little (or big) bet with me that CGT that more of those above the average wage pay it than those below?

It's a similar situation with trusts how many in the lower socio economic bracket would have a trust?

That much is obvious but it's also the case that in the near future someone with £0 income could make a say £6k gain and pay the same tax on a £6k gain as someone who earnt much more. That's pretty daft in my view.

I think that's incorrect. There's an annual £12300 allowance before you pay CGT.

Look at it another way. Someone working 35 hours a weeks and earning £20,000 in a year would pay far more Income Tax and NI than someone not working but getting £20,000 from selling an investment.

Not for much longer it isn't.  It drops to £3000 in the next couple of years which was what I based the point on, so yes I was ahead of the curve but it changes drastically.

[SydneyRover]

   



                                                 

[BillyStubbsTears]

I didn't know that BFYP. Thanks for the update.

It's not the way I'd have changed CGT, because, as ever with the Tories, it doesn't hit the very rich. The very wealthy barely notice the annual allowance. I'd have increased the rates of CGT, but there you go.

Actually, in my example, even with the reduced allowance, the worker pays far more tax. On £20k, a worker would pay 20% income tax on roughly £7.5k and 12% NI on roughly £10.2k. So roughly £2725.

The investor, as a basic rate tax payer, would pay 10% CGT on £17k when the lower allowance comes in, so £1700.