Looking forward to next week's Budget, does anyone have comments on what they expect / would like to see in it to support Individual Investors and investing in general? We are preparing a piece on this at the moment and would really welcome your views. The following elements would presumably be welcome by everyone in the PI community - let us know if you disagree.
- Restoration of dividend tax credits;
- Reduction of stamp duty on share transactions;
- Raising the Inheritance Tax Threshold;
- Increasing ISA allowances beyond 10.2k
See latest Brewin Dolphin survey on this: http://www.brewindolphinmedia.co.uk/brw/media/pressreleases/2010/2010-03-15 :
47% called for the restoration of dividend tax credits, ahead of raising the Inheritance Tax Threshold (“IHT”) highlighted as a priority by 36% and the reduction of stamp duty by 29%.
What about increasing VAT to shift tax burden onto consumption rather than investment? Is everyone in favour of that? It's perhaps less clear given the macro-economic consequences of such a shift.
And is anyone aware of anything novel being proposed by the Opposition in this area? George Osborne's recent New Economic Model speech talked about restoring a savings culture but the main measures proposed by the policy document seem to be:
- Raising the Inheritance Tax threshold to £1 million.
- Raising the stamp duty threshold to £250,000.
- Ending effective compulsory annuitisation at age 75.
- Over the longer term, "reversing the effects on pension savers of the 1997 abolition of the dividend tax credit for pension funds" (but not clear how).
Back to the budget, the big risk for PIs seems to be the risk of a significant increase in CGT given the income vs. CGT disparity. Anything else on your minds?
Feel free to add comments here or email us (to admin @ stockopedia.co.uk if you'd rather keep your thoughts confidential).