mrk
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Post by mrk on Nov 10, 2020 11:53:21 GMT
What are the odds that ISAs will be targeted at some point? They always struck me as almost too good to last. If anyone else did a little bit of research on moving abroad you'll probably know that they're a UK "anomaly"; in most other countries you'd pay regular income / capital gains taxes on all your investments.
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r00lish67
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Post by r00lish67 on Nov 10, 2020 12:53:39 GMT
What are the odds that ISAs will be targeted at some point? They always struck me as almost too good to last. If anyone else did a little bit of research on moving abroad you'll probably know that they're a UK "anomaly"; in most other countries you'd pay regular income / capital gains taxes on all your investments. <waves hand> Compared to Spain, the UK is absurdly generous. Imagine having all savings income lumped on top of your income and taxed as such, no ISAs, a personal tax-free limit of £5000 and being taxed on all capital gains of your equity investments each year (even if you don't sell them!).
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mrk
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Post by mrk on Nov 10, 2020 13:26:49 GMT
<waves hand> Compared to Spain, the UK is absurdly generous. Imagine having all savings income lumped on top of your income and taxed as such, no ISAs, a personal tax-free limit of £5000 and being taxed on all capital gains of your equity investments each year (even if you don't sell them!). Having to pay taxes on unrealised gains is definitely not fair. But otherwise I don't see much wrong in taxing all your income. Although I'm doing my best to take advantage of ISAs while they last. From HMRC stats "The estimated Exchequer cost of the tax relief for ISAs in 2018-19 was around £3.3 billion."
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Post by Deleted on Nov 10, 2020 13:54:41 GMT
What are the odds that ISAs will be targeted at some point? They always struck me as almost too good to last. If anyone else did a little bit of research on moving abroad you'll probably know that they're a UK "anomaly"; in most other countries you'd pay regular income / capital gains taxes on all your investments. [b Capital gains tax does not exist in many places. Switzerland and New Zealand for example.
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IFISAcava
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Post by IFISAcava on Nov 10, 2020 13:58:56 GMT
<waves hand> Compared to Spain, the UK is absurdly generous. Imagine having all savings income lumped on top of your income and taxed as such, no ISAs, a personal tax-free limit of £5000 and being taxed on all capital gains of your equity investments each year (even if you don't sell them!). Having to pay taxes on unrealised gains is definitely not fair. But otherwise I don't see much wrong in taxing all your income. Although I'm doing my best to take advantage of ISAs while they last. From HMRC stats "The estimated Exchequer cost of the tax relief for ISAs in 2018-19 was around £3.3 billion." Which is nothing compared to pensions, which is why they will go after pensions (again) instead.
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james100
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Post by james100 on Nov 10, 2020 14:37:23 GMT
What are the odds that ISAs will be targeted at some point? They always struck me as almost too good to last. If anyone else did a little bit of research on moving abroad you'll probably know that they're a UK "anomaly"; in most other countries you'd pay regular income / capital gains taxes on all your investments. Crystal ball time! I would guess that assets already within an ISA are safe in terms of future tax exemptions. Would not be surprised if the contribution allowance were frozen for 5 years though. The government will need to balance the interests of its core voting demographic (older, wealthier) and facilitating the public's motivation/ability to pay for itself in future (implied roll back of state provision in areas of pensions, health & aged care), versus their desire to be seen as fiscally responsible and not too nasty. So, lots of freezes: cgt allowance, isa allowance, personal allowance, state pension. Small-medium income tax raise positioned as "we're all in it together". A few headline grabbers attacking the very wealthy 75% tax rate on income > 500K etc. Some QE or equivalent measures on the side (but no negative interest rates). There are 2 key economic/financial/social themes which are uncomfortable outliers for the government and itching to be matched IMHO: over-inflated house prices and too little money in aged care provision. The Australian government (which the treasury has previously considered a model worth studying wrt pension reforms review) was looking at a state-run equity release scheme so that homeowners when down to their last $X,000 can effectively withdraw living and aged care expenses from their property value at a regulated, non-commercial rate of interest (charge goes on the property and bill gets settled after death) without selling their home or relying on state funds. I would expect to see more policy-based solutions like this considered to manage future state expenditure without risking too much short-term voter alienation through further tax increases.
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registerme
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Post by registerme on Nov 10, 2020 14:52:54 GMT
Don't forget the old "inflate away the debt" chestnut as another possible string to their bow.
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Post by Deleted on Nov 10, 2020 14:56:27 GMT
To do that they have to be able to stimulate inflation. Given that the Japanese have been trying to do that for 20 years and failed. Exactly how do we do that with most of the wealth in the hands of old people who just don't need another toaster?
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registerme
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Post by registerme on Nov 10, 2020 15:05:59 GMT
Print money?
Note, I'm not disagreeing with you, I understand the situation in Japan, and I have no idea why inflation has been so quiescent since the GFC (but I worry that it's hiding somewhere and we're just not capturing it appropriately for measurement purposes), but it is part of the armoury when dealing with massive public debt.
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r00lish67
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Post by r00lish67 on Nov 10, 2020 15:09:03 GMT
To do that they have to be able to stimulate inflation. Given that the Japanese have been trying to do that for 20 years and failed. Exactly how do we do that with most of the wealth in the hands of old people who just don't need another toaster? Impose a series of tariffs and additional bureaucracy related costs on UK businesses and make the labour market less competitive by discouraging the movement of labour across borders?
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Post by Deleted on Nov 10, 2020 15:14:25 GMT
labour movement across border! We are not Luxembourg
Wilson tried it in 197? and put up vat on so called "luxury" items. Just about destroyed most of those industries.
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IFISAcava
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Post by IFISAcava on Nov 10, 2020 15:51:52 GMT
To do that they have to be able to stimulate inflation. Given that the Japanese have been trying to do that for 20 years and failed. Exactly how do we do that with most of the wealth in the hands of old people who just don't need another toaster? But the accompaniment to no inflation is low interest rates, which means you can afford the interest on the debt, as in Japan (developed world's largest deficit) It may not be as drastic as we think, especially since most countries are in the same boat
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IFISAcava
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Post by IFISAcava on Nov 10, 2020 15:54:07 GMT
To do that they have to be able to stimulate inflation. Given that the Japanese have been trying to do that for 20 years and failed. Exactly how do we do that with most of the wealth in the hands of old people who just don't need another toaster? Impose a series of tariffs and additional bureaucracy related costs on UK businesses and make the labour market less competitive by discouraging the movement of labour across borders? Ah yes, I nearly forgot, we aren't all in the same boat - only we have added no-deal or wafer thin deal Brexit to the menu.
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agent69
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Post by agent69 on Nov 10, 2020 16:48:42 GMT
labour movement across border! We are not Luxembourg
Wilson tried it in 197? and put up vat on so called "luxury" items. Just about destroyed most of those industries.
Not Harold 'the pound in your pocket is still worth a pound' Wilson?
Still, I guess VAT on luxury goods went down better that Mrs Thatch putting VAT on takeaway food.
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macq
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Post by macq on Nov 10, 2020 22:49:43 GMT
Having considered the points raised i have decided to move my money offshore - this follows a phone call today from a man with an American accent who said he had a warehouse full of Red baseball caps going very cheap.So i did the deal and all i need is to find out which team uses the nickname maga and i should make a fortune
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