Which Party Is Best For Investing?
Summary
TLDRThis video script explores the potential impact of the UK's general election on investments, analyzing key policy proposals from major parties including tax changes, pension reforms, and investment directives. It scrutinizes each party's manifesto promises on fiscal drag, income tax thresholds, National Insurance, and capital gains tax, highlighting the possible effects on personal finances and market behavior. The script also touches on special policies like child care, parental leave, and wealth tax, urging viewers to consider these factors when voting and to stay informed for sound financial decision-making.
Takeaways
- 🗳️ The UK general election is on July 4th, coinciding with Independence Day in the US.
- 💡 The video aims to analyze the potential impact of each major party's policies on investments and the economy.
- 📈 The speaker does not support the Conservative party this time and emphasizes the importance of not being blindsided by the election results.
- 📊 The video references data from BBC and Financial Times, acknowledging that exact percentages in polls may not significantly alter outcomes.
- 🏛️ Smaller parties like SNP, Plaid Cymru, and Reform UK are excluded from the main comparison due to their focus on specific regions or lower polling numbers.
- 💼 The speaker criticizes the lack of comprehensive coverage of Reform UK by mainstream websites, despite its significant policy proposals.
- 💰 The script discusses the implications of tax policies, including income tax, National Insurance, capital gains tax, and VAT, on personal finances and investment.
- 📉 The 'fiscal drag' effect of frozen tax thresholds is highlighted as a significant factor increasing the tax burden on the public.
- 🏠 Policies related to housing, such as changes to stamp duty and council tax, are examined for their potential impact on homeowners and the property market.
- 💼 Corporate tax strategies and their potential effects on business growth and investment are also considered.
- 🌱 The video touches on environmental policies, particularly those of the Green Party, and how they might affect the energy sector and investment in green technologies.
Q & A
What is the significance of the UK general election being held on July 4th, Independence Day?
-The significance is that it coincides with Independence Day in the United States, which the speaker finds a fun and interesting timing to discuss the potential impact of the election on investments.
Why might the speaker's previous videos on the election have received both positive and negative feedback?
-The speaker speculates on outcomes and policies of the Labour party, which may not align with all viewers' political views, leading to both love and hate reactions.
What is the term used to describe the situation where not adjusting tax thresholds with inflation effectively increases taxes on wage earners?
-The term is 'fiscal drag', which can push more workers into higher tax brackets as their wages rise with inflation.
What is the 'triple lock' policy regarding state pensions, and why has it been a topic of discussion?
-The 'triple lock' policy ensures that state pensions increase by the highest of average earnings growth, CPI inflation, or 2.5%. It has been discussed due to concerns about its long-term sustainability and the fiscal risk it poses.
How does the speaker plan to compare the parties' policies on the video?
-The speaker plans to compare the parties' policies based on what they have stated in their own manifestos, noting that these are not binding but an indication of what they may do.
What is the impact of freezing income tax thresholds on the number of taxpayers and tax revenue?
-Freezing income tax thresholds is estimated to increase the number of taxpayers in each band by 11% for basic rate, 68% for higher rate, and 49% for additional rate, raising tax revenue by billions by the end of the forecast period.
What are the main tax policies proposed by the Conservative party regarding personal allowances and National Insurance?
-The Conservatives propose introducing a new pensioner personal allowance and cutting National Insurance by 2% from 6% in April 2027, as well as eliminating the main rate of National Insurance for the self-employed.
How do the Labour party's policies on capital gains tax differ from the Conservative party's?
-Labour wants to close a loophole where performance-related pay in private equity is treated as capital gains rather than income tax, while the Conservatives propose tax-free sales for landlords selling to existing tenants.
What is the Green Party's stance on VAT, and how might it affect various sectors?
-The Green Party supports VAT fees for private school fees and proposes changes to VAT, such as reducing it on hard-pressed areas like hospitality and the arts, and increasing it on financial services and private education.
What are the Reform UK party's proposals regarding income tax and National Insurance?
-Reform UK proposes raising the minimum tax threshold from £12,570 to £20,000 and the higher rate from £50,000 to £70,000, and introducing a 25% transferable tax allowance. They also plan to increase National Insurance to 20% for foreign workers.
How do the speaker's views on the parties' policies on inheritance tax differ from the provided manifestos?
-The speaker wishes for more clarity on inheritance tax from all parties, as only the Green Party and Reform UK mention it in their manifestos, with differing proposals for reform and abolition, respectively.
Outlines
🗳️ UK General Election and Investment Implications
The script discusses the upcoming UK General Election coinciding with Independence Day and its potential impact on investments. The speaker intends to analyze each party's manifesto promises to predict their effects on investors. The focus will be on the major parties, excluding smaller ones like the SNP and Plaid Cymru. The speaker expresses concern about the current state of the UK and acknowledges the challenges any new government will face in fulfilling their promises, hinting at potential negative outcomes not explicitly stated in the manifestos.
💼 Impact of Party Policies on Taxation and Personal Finances
This paragraph delves into the tax policies of various parties, highlighting the potential effects on personal finances and investment. It discusses income tax, the triple lock on pensions, and the implications of threshold freezes, which could lead to fiscal drag affecting millions of taxpayers. The speaker outlines the different stances of parties like the Conservatives, Labor, Liberal Democrats, Green Party, and Reform UK on tax thresholds, pension allowances, and National Insurance rates, emphasizing the potential financial burden on citizens and investors.
🏦 Tax Policies on Capital Gains, VAT, and Corporation Tax
The speaker examines capital gains tax, VAT, and corporation tax policies proposed by the parties. They discuss Conservative plans for tax-free land sales to tenants, Labor's aim to close loopholes in private equity, Liberal Democrats' proposals to adjust capital gains tax rates, and the Green Party's intention to align capital gains tax with income tax. VAT policies include Conservative plans to maintain the current rate, Labor's controversial move to tax private school fees, and the Liberal Democrats' unique proposals to scrap VAT on children's dental products and reduce it for electric vehicle charging. Corporation tax plans are also explored, with parties having different strategies to maintain or adjust rates to support businesses.
🏠 Proposals on Stamp Duty, Council Tax, and Inheritance Tax
The paragraph covers the parties' proposals related to stamp duty, council tax, and inheritance tax. Conservative plans to increase the first-time buyer stamp duty threshold and Labor's intention to increase the rate for non-UK residents are highlighted. The Liberal Democrats propose a social charge on second home purchases, while the Green Party suggests a land value tax system. Inheritance tax discussions include the Green Party's proposed reforms and Reform UK's plan to abolish it for estates under £2 million, with a 20% rate for higher values, potentially impacting the way wealth is transferred across generations.
💼 Investment-Related Policies and Pension Fund Implications
This section focuses on investment-specific policies, particularly those affecting pension funds. The Conservatives promise no new tax changes on pensions, while Labor plans to increase investment from pension funds into UK markets. The Liberal Democrats aim to align pension investments with the Paris Agreement, and the Green Party proposes removing fossil fuels from pension assets by 2030. Reform UK suggests a review of the pension landscape to improve outcomes and increase investment in UK markets, with a focus on public ownership of utilities and better management by pension funds.
🤔 Reflections on Party Policies and the Impact on Personal Finances
The speaker reflects on the divisive nature of the party policies based on personal circumstances and views. They express a sense of being lost between the major parties and a desire for more cooperation. The paragraph concludes with a call for transparency, urging viewers to read the manifestos themselves to make informed decisions. The speaker also touches on the importance of kindness and understanding in political discourse and ends with a note on helping viewers improve their finances.
Mindmap
Keywords
💡General Election
💡Manifesto
💡Fiscal Drag
💡Triple Lock
💡National Insurance
💡Capital Gains Tax
💡VAT (Value Added Tax)
💡Corporation Tax
💡Inheritance Tax
💡Tax Avoidance
💡Stamp Duty
💡Council Tax
💡Pension Funds
💡Wealth Tax
Highlights
The UK general election coincides with Independence Day, offering a reflection on the potential impact of each party on investments.
The video aims to compare party manifestos to understand their implications for investors, without bias towards any political stance.
None of the parties plan to raise income tax, but there's concern about fiscal drag due to frozen tax thresholds.
The Conservatives propose a new pensioner personal allowance to save pensioners money, while Labour and Lib Dems aim to protect the existing triple lock.
The triple lock has increased the state pension's value relative to earnings, but its long-term sustainability is in question.
Reform UK's policy suggests raising minimum and higher rate tax thresholds significantly, which could be impactful but also costly.
National Insurance rates may be cut by the Conservatives, with different parties having varying plans that could affect workers and the self-employed.
Capital gains tax proposals vary, with Labour aiming to close a loophole in private equity and the Lib Dems proposing an increase in the allowance.
VAT policies differ, with Labour planning to charge VAT on private school fees and the Lib Dems suggesting a reduction on public charging for electric vehicles.
Corporation tax is a key issue for businesses, with Labour capping it at the current level and the Conservatives not planning to increase it for small businesses.
Inheritance tax proposals are limited, with the Green Party suggesting reforms and Reform UK planning to abolish it for estates under £2 million.
All parties express interest in tackling tax avoidance, with strategies focusing on improving HMRC's capabilities and powers.
Stamp duty proposals include an increase in the threshold for first-time buyers by the Conservatives and a potential increase in rates for non-UK residents by Labour.
Council tax policies are varied, with the Conservatives opposing an increase in bands or revaluation, and the Lib Dems suggesting a significant increase for second homes.
Pension policies are a mix, with Labour aiming to increase investment from pension funds into UK markets and the Green Party proposing to lower pension tax relief for higher earners.
Special policies from parties include the Conservatives offering 30 hours of free childcare, Labour looking to abolish non-dom status, and the Lib Dems proposing a tax on share buyback schemes.
The video concludes by emphasizing the importance of reading party manifestos for a comprehensive understanding and encourages kindness in political discussions.
Transcripts
the general election here in the UK is
happening on July 4th or funnily enough
Independence Day and I thought it's a
good time to look at what each party
will mean for our investments this may
help you to make up your mind but also
be a good reflection of what we should
expect from whoever wins the election in
my last two videos I've tackled a lot of
what we could expect to come from labor
which does include speculating on what
may happen because let's face it whoever
gets in is going to be scrambling down
the back of the sofa to find the money
to fulfill their promises and is likely
going to be much worse to come than what
they're promising I've had a lot of love
and some hate on my previous videos some
calling them a Tory piece and in actual
fact I want to say I'm not voting
conservative this time and I would
presume I don't need to mention the fact
we all know we're in an absolute State
at the moment whether you blame the
Tories or not I feel like we don't need
to point out the obvious it's almost a
certainty that labor will be getting in
come Thursday but it's more interesting
to me to look at what we may expect to
come so we're not complet complet
blindsighted but in this video I want to
do something a little different and
compare what each of the parties are
setting out to do and how it will affect
us as investors for the purpose of
clarity I'm going to be going off what
they've said within their own manifestos
and I want to point out that just
because it's in their Manifesto doesn't
mean it's binding and it's only an
indication of what they may do I wish it
was binding so we could at least know
what we were getting if they had to
stick to their words so let's break down
each of the key areas and look at what's
been promised now I hurt some people's
feelings last time by just including the
U go poll so here's the data from both
the BBC and the financial times of
course he are just an estimate I really
don't think there's much difference
between labor having a 40% majority and
a 37% majority but I will apologize for
anyone that I upset for Eon to keep this
video shorter I'm going to be excluding
both the SNP and ped Cy as I believe
these are much smaller in the polls and
much more country specific so for the
purpose of this comparison I'll be
looking at Labor the conservatives the
liberal Democrats the green party and
yes reform UK I will say that during my
research of this campaign I'm shocked
how many sites have completely excluded
reform as a party which seems a shame as
I do believe in Fair representation
whether you agree with them or not and
also during this research it's
surprising how much is left out by big
websites I'm talking about big websites
with huge reach there's some saying
there's no mention of something when it
clearly outlines their plans quite
drastic in their own man estos so I've
directly taken this from what they have
said I would have liked to see them all
debate against each other in a fair
environment but it's no surprise that
BBC aren't going to give much support to
the party looking to abolish their TV
license fee and what's been going on
seems absolutely crazy so let's avoid
that Minefield and look at what's
actually been said in the key areas
affect us financially going forward
first let's talk about tax because this
is what has the biggest impact on us and
it's going to affect how much we have
available to invest best income tax is
going to be the big one that affects us
the most none of the parties have any
plans to raise income tax as that would
be such an unpopular policy with a
caveat because it's not raising income
tax that's the issue it's then not
raising the thresholds in line with
inflation when they freeze the
thresholds that we pay tax rather than
raising them in line with inflation
increases tax as rising wages plus
greater numbers of workers into the tax
system or onto higher rates it's a trend
known as fiscal drag in each forecast
higher than expected earnings increase
the numbers expected to be paying a
higher rate of tax and the amount of tax
that they pay data from the OB shows at
between 2022 and 2023 and 2028 and 29
this set of threshold freezes means that
nearly 4 million additional people will
be expected to pay income tax 3 million
more will have moved into the higher
rate and 400,000 onto the additional
rate this represents an increase in the
number of taxpayers in each band of
income tax 11 % for the basic round 68%
for the higher rate and 49% for the
additional rate this is a respective
increase by 20128 of 830,000 900,000 and
43,000 this set of freezes are now
estimated to raise 42.9 billion and 44.6
billion by the end of the forecast which
is 1.4% of GDP Frozen thresholds are the
largest contributor to the rising
overall economy wide tax burden
responsible for almost a third 4.5% of
GDP increase in taxes from 2019 to
2028 so what does each party plan to do
about it the conservatives plan to
introduce a new pensioner personal
allowance increasing the triple lot
guarantee from April 2025 which will
save around £1 for 8 million pensioners
rising to 270 per year by the end of
parliament this is a new scheme while
labor and the lib Dems also plan to
protect the existing triple lock that's
in place the trip lock is a commitment
to increase State pensions by whichever
is highest of average earnings growth
CPI inflation or 2.5% the triple lock
along with the introduction of the new
state pension has increased the value of
the state pension relative to earnings
to a level not seen since 1980 when the
policy of operating in line with
earnings was ended from a peak of 26% in
1979 the value of the basic state
pension as a percentage of average
full-time earnings fell to around 16%
between 2000 and 2010 following the
introduction of the triple lock the
value of the basic state pension
increased from 16.8% to 18.8% of
earnings by 2022 the new state pension
was worth 24.5% of earnings in 2022 a
slight increase from 24.1% when it was
introduced in 2016 in March 2023 the
department for work and pensions at DWP
forecasts that the total State Pension
expenditure in 2023 will be
124.32607 billion the triple o has
increased the value of the state pension
leaving pensioners better off than they
would have been otherwise however
concerns have been raised about its
sustainability in the long term
particularly in light of the recent
economic volatility which has
accelerated spending the OB or the
office for Budget responsibility has
identified the triple o as a fiscal risk
this is due to its upward ratcheting
effect which leaves a public finances
exposed to higher pension costs this one
I think is good news for pensioners and
perhaps us when we actually get there
but it's an expensive cost which will
only grow into the future whether it's
sustainable or not we'll have to see
labor haven't mentioned anything to do
with the income thresholds the liberal
Democrats said they would cut income tax
by raising the personal allowance when
public finances allow it the green party
have said and I quote they're committing
to no increases in basic rate of income
tax during this cost of living crisis no
mention of the higher rate taxpayers
which is a little scary and reforms
policy is like the most impactful here
raising the minimum tax threshold from £
12,570 to 20,000 and the higher rate
from 50 to 70,000 and when finan is
allowed they would introduce a 25%
transferable tax allowance meaning no
tax on the first 25,000 of income for
either spouse these would be pretty huge
but how expensive they would be is
another question definitely on the more
radical side out of the bunch on income
tax hand inhand with income tax is
National Insurance
the conservatives are suggesting a 2%
cut in National Insurance from 6% in
April 2027 which they say would save
1,350 for a worker on £335,000 and they
would get rid of the main rate of
national insurance for the self-employed
by the end of parliament labor have no
plans to increase National Insurance and
that's what they've said lib Dems have
no mention of it only they will aim to
make it fairer and the green party would
remove the reduced National Insurance
for higher earners and they quote they
feel that tax rate should not fall as
income increases reform plan to increase
National Insurance to 20% for foreign
workers they say this would incentivize
British businesses to employ British
workers because their national insurance
rate would stay at
13.8% I definitely understand reforms
thinking on this one but I hope it
wouldn't discourage us from getting
essential staff we need from overseas
where we already have shortages we do
have Fair wages in this country in the
sense of it's not like we're paying a
foreign employee less than a British one
at least I would like to think that's
the case I'm not overly convinced we
would be bringing them all here if we
didn't need them but that's open to
debate in terms of cost savings to us
likely conservatives would be best here
with the greens being the most expensive
for higher earners capital gains tax is
the next one that will affect the
majority of us at some point throughout
our lives the conservatives are
suggesting to implement taxfree for
landlords if they sell their property to
existing tenants seemingly in a bid to
get more people into Home Ownership
labor want to close a loophole where
performance related pay in private
Equity Industries is treated as capital
gains rather than income tax which to me
seems pretty fair the lib Debs want to
close loopholes they feel are being
exploited by the super wealthy raise the
allowance to 5,000 which would be better
for normal people remember until
recently it was 12,300 per person which
has now been stripped right down to
£3,000 which seems awfully low they also
want to introduce relief for small
businesses and increase rates to 20 40
and 45 % so it would be in line with
income tax generating a suggested
revenue of 5.2 billion green have said
that they would bring capital gains tax
in line with income tax and say it would
only affect 2% of income tax payers and
reform have no mention of it in their
Manifesto it would be so much easier if
they all had to give their stance on key
areas so we could clearly see where they
all stand but hey ho I think closing
some of these Le polls definitely seems
fair it's unfair that only a few can get
away some of these to pay less tax and
the mass majority of us have no choice
the lib Dems increase is nice to say too
and something I wish others would also
consider a nominal rate of capital gains
tax is nice for us all to benefit from
at some point I suppose the counter
argument is that some people are able to
take advantage of it every year while
for most of us it might be once C BL
Moon next is another tax which affects
us all in different ways which is vat
the conservatives plan to keep it at the
9,000 they had already established which
was good of them to do although we would
have liked to see a larger rise in in
line with Rising inflation labor planed
to charge Vats to private school fees
which has caused quite a bit of
controversy mainly around those parents
who will now be priced out and the
demand on public schools I don't think
many people feel too sorry for the ones
it won't mean a lot too financially now
the liberal Democrats have an
interesting one they want to scrap VAT
on children's toothbrushes and
toothpaste to encourage children to
brush their teeth they also want to cut
vat to 5% on public charging for
electric vehicles and they remove vat
exemption for private first class and
business class lights green is also in
favor of the VAP fees for private skills
and they say that they would propose a
range of changes to vat reducing it on
hard press areas such as hospitality and
the Arts and increasing it on financial
services and private education let's
hope that doesn't include core Financial
education type services or investing
platforms that people need they would
also look to remove or reduce V on
renewable energy installations not a
surprise for the greens which I would
personally like to see a bit more of and
also which I think is quite interesting
they want to remove V on things like
cultural events which includes
everything from theater to museum
tickets to gigs in local pubs which I
think could be pretty nice raor would
reintroduce the vat refund scheme for
Tor shopping which they claim has cost
the economy over 10 billion and perhaps
their most dramatic of their suggestions
is to scrap VAT on energy bills which
they say would save households £500 per
year and also throw in there they would
lower fuel Duty by 20p which would be
welcome change by most they also want to
lift the that threshold to 150,000 which
I think would be a welcome change for
small businesses they've also suggested
that relief in the social care system as
well as in contrast to the others
keeping the 20% relief on Independent
Schools as they think that relief can
ease the strain on public schools
there's some interesting changes on this
one I think reforms would probably be
the most impactful for us as a person
think about the private schools but I do
think also the policy about removing
that on things like museum tickets and
local G would be great for communities
this one's definitely highlighted some
areas that are quite interesting next up
is corporation tax which is integral to
businesses both small and large
conservatives have no plans to increase
corporation tax although they have said
at least not for small businesses which
could mean they do increase it for
larger companies labor will cap
corporation tax at the current level of
25% the lowest in the G7 for the entire
Parliament which is good and they say
they will act if tax changes in other
countries pose a risk to the UK
competitiveness the lib Dems plan to
tackle avoidance on this issue by
working with Partners in international
forums including the oecd and the UN to
tackle International corporate tax
avoidance for the benefit of all
countries and make the case for
increasing Global minimum rates of
corporation tax to 21% green
surprisingly doesn't mention corporation
tax in the manifesto reform plan to and
I quote free over 1.2 small and
medium-sized businesses from paying
corporation tax by lifting the minimum
threshold to 100K they also want to
reduce the main corporation tax rate
from 25% to 20% and then to 15% from
year three I really like the reform
policy on this one in particular it
would be huge for small business growth
although again how expensive some of
these changes could be is a real
question it's nice to see none of the
parties are planning at least for now to
increase it inheritance tax is another
one that's caused quite a fuss the
conservatives labor and the lib DS have
no mention of it in their policies which
isn't amazing it would be so much better
if they said their stance on it because
it does raise red flags on what possibly
could happen that hasn't been mentioned
and it has circulated a lot of rumors
about all the parties the green party
have said that they would reform
inheritance tax ensuring that
intergenerational transfers of wealth
attacks more fairly so we can presume we
would see some increases and maybe less
likely some reductions reform are
planning to abolish inheritance tax for
all the states under2 million that means
98% of all the states the rate above 2
million pound will be 20% tax with the
option to donate to charity instead it's
quite a sensitive subject as for most of
us we feel like we shouldn't be paying
tax to pass on our states we've already
paid tax on our entire lives not a huge
amount of clarity here from the others
hopefully that means they don't plan to
touch it it would have just been nice to
have that Clarity added another
interesting debate around this election
has been tackling tax avoidance which
all parties seem quite keen on the
conservatives are planning to tackle tax
avoidance and evasion raising an
estimated 6 billion pound per year by
the end of Parliament and what they say
is over 200 measures that they've
already implemented labor are planning
to tackle tax avoidance by modernizing
hmrc and increase registration and
Reporting requirements and strengthen
hmrc's powers and focus on large
businesses estimating A5 billion saving
hopefully not too much hassle for a
self-employed I have a feeling this will
mean completing a declaration a lot more
often than once a year most likely
quarterly Li DS is fairly similar they
want to narrow what they claim is a 36
billion pound tax Gap by investing an
extra 1 billion a year into hmrc to
improve support and compliance and
anti-avoidance activities suggesting a
revenue of 7.2 billion green also want
to strengthen hmrc while focusing on
making sure larger corporations pay
their fair share of tax reform have
stated they want to improve hmrc
Staffing and management to address
failure to collect tens of billions of
taxes as well as complaining that they
want to stop the offshore taxpayer
ripoff and they said some larger Care
Home providers are avoiding tax on
hundreds of millions of profits through
complex off share property company
structures and high interest shareholder
loans and they said this has to end they
all seem to be pretty focused on HRC and
we could see more regular reporting for
all I hope the focus here will be more
on the larger corporations and closing
loopholes and not more cost for the
smaller guys and more hassle but we'll
have to see stamp duty is the next one
that will affect all of us at 1 Point or
another in our lives the conservatives
want to increase the threshold for
firsttime buyers from 300K to 425,000
before they start paying stamp Duty with
no plans to increase it for anyone else
labor haven't mentioned a change for
anyone other than increasing the rate of
stamp Duty SE charge paid by non UK
residents which I think is pretty good
lab Dems have a similar policy to labor
and wanting to add a SE charge green
party have no mention of it and reforms
is pretty drastic in comparison they
want to cut resident stamp Duty
substantially by cutting stamp Duty down
to 0% below 750k and cut it to 2% from
750k to 1.5 million and cut it to 4%
over 1.5 million which could mean quite
a big saving for everybody council tax
is another area that's come under a lot
of scrutiny the conservatives have said
that under the family home tax guarantee
we will not increase the number of
council tax bans or undertake an
expensive council tax revaluation or cut
council tax discounts with a lovely dig
at the end as labor is currently doing
in Wales labor have not mentioned in
their plans I would assume that they
would bring England in line with Wales
and go of 2003 values of properties
rather than 1991 but they haven't said
anything the lib DMS have quite a big
one here giving councils the ability to
increase council tax by up to 500% where
homes are being bought as second homes
this one's likely to give local
authorities the ability to put people
off buying up areas where local state
homes and are priced out to the market
this has been particularly pressing
especially in certain areas of Wales
everybody is buying a holiday home the
locals can't buy green have said that
the green party has always opposed
council tax which is a regressive tax
that shifts the emphasis away from a
local tax of property they want what
they say is a fairer system for taxing
landowners they said our long-term
policy aim is a land value tax so those
with the most valuable largest land
Holdings would contribute the most they
want a reevaluation of council banss to
reflect big changes in value since the
1990s they want to remove business rate
relief on Enterprise zones free ports
petrol stations and most empty
properties and they want a survey of all
land Holdings to pave the way for fair
taxation of land reform have made no
mention of Cel tax in the manifesto
before we hop into investment specifics
there's a couple of other special
policies which only apply to certain
parties in these cases the other parties
haven't mentioned these specific
policies which isn't to say they won't
do them but it isn't their manifestos so
from the conservatives we got 30 hours
of free child care a week up to when
they start school but that's in England
only labor want to abolish non-dom
status completely to stop people
avoiding paying tax in the UK the lib DS
want to give each parent 6 weeks of use
it or leave it leave as well as 46 weeks
of Parental leave that they can use
between the two parties greens will push
for a wealth tax this will tax the
wealth of individual taxpayers with
assets above 10 million 1% and assets
above 1 billion at 2% annually in their
own words only a very small minority of
people would be subject to the wealth
tax while the overwhelming majority
would benefit at reform I'm sure you
don't need me to mention will freeze
non-essential immigration as well as
perhaps a radical idea of giving NHS
patients a voucher if they can't see a
GP within 3 days for a consultant it
would be 3 weeks for an operation 9
weeks and they say services will always
be free at the point of use so that's a
stuff I think will mostly affect our
money there's more details each specific
policy but I won't go too specific on
that let's talk about the actual
investment side of things now in terms
of Isis the word Isa was actually
mentioned a whopping zero times across
all of the manifestos so we're left in
the dark on that one it would have been
really nice to see something regarding
the British Isa or the lifetime isers or
some kind of simplification of the
system we could assume that means
nothing will happen but it does
unfortunately I feel leave them all open
to interpretation so nothing on that for
now if that does change I will let you
know as soon as I do so if you aren't
already make sure you subscribe with
notifications on so you don't miss it
pensions however we do have some changes
coming and here are the most noticeable
ones that will affect us the
conservatives are planning no new tax
changes on pensions and said they will
maintain the 25% tax-free lump sum labor
have said that labor will also act to
increase investment from Pension funds
into UK markets we will adopt reforms to
ensure that workplace pension schemes
take advantage of consolidation and
scale to deliver better returns for UK
Savers and greater productive investment
for UK PLC we will also undertake a
review of the pensions landscape to
consider what further steps are needed
to improve pension outcomes and increase
investment in the UK markets the lipm
have said that they will require Pension
funds and managers to show that their
pension portfolios are consistent with
the Paris agreement which essentially
means ensuring the Pension funds are
investing in green companies or
companies with a focus on climate change
greens have two big changes the first is
to make pension funds remove fossil
fuels from the assets by 2030 and the
second is to lower pension tax relief to
20% from 40% for the higher rate earners
a pretty big blow to the higher rate
taxpayers utilizing pension
contributions they say this would help
pay for social care they four mon a
review pension provision they say that
the current system is riddled with
complexity huge cost and poor returns
leading to less uptake countries like
Australia do savings and pensions much
better and cheaper and do it from a much
younger age the o plans around
infrastructure which could impact
pensions they say that the British
taxpayer needs to be in control of
Britain's utilities the launch a new
model brings 50% of each Equity into
public ownership the other 50% would be
owned by UK Pension funds benefiting
from new expertise and better management
these changes for me are quite mixed
personally and perhaps selfishly I don't
want them to lower the pension threshold
contribution to 20% for the higher rate
honestly when you look at the stats the
vast majority of the nation don't have
enough in their pensions as it is I
don't think we should be discouraging
people from putting money into their
pensions it would also tighten the gap
between the iser and the Sip and more
people would lean towards the ISA which
of course they get no tax money from
whatsoever the glaring problem from all
of these is forcing Pension funds to
have UK based assets if we compare for
example the S&P 500 to the footy 100 or
footy 250 you can see the huge
difference in performance personally
what needs to happen is much more
control everyone should be allowed to
have the pension in their own lowc cost
index tracker that tracks the global
markets and matches the stock market
performance not to be forced into some
worse performing option it shouldn't be
the job of an ordinary person to prop up
UK companies using their pension by any
means in my view especially at their
expense there's a couple of other party
specific policies which I think are
quite interesting the lib Dems are
proposing a 4% tax on share buyback
schemes of 4100 listed companies to
incentivize productive investment job
creation and economic growth the idea
would be to get them to reinvest in the
company rather than buying back shares
they suggest would generate a revenue of
1.4 billion this is based on a similar
policy in the USA from the Biden
Administration and seems a bit strange
it's been criticized by senior
economists who said that they would be
surprised if a 4% tax raised much
revenue at all to a large extent I would
expect companies to just stop using
share buyback schemes and just pay
dividend instead if they wanted to
return the money to shareholders there's
no clear justification for the policy
it's an interesting idea they tried to
come up with but there's so many factors
of play into this like the fact we hold
most of our investments in Isis and sips
where we're not applicable to tax on
those dividends and here in the UK we
own quite low amounts of UK equities
compared to the world where for example
in the USA they own a lot more of us
companies which is understandable I
would simply just see them Distributing
cash as dividends instead and the green
party want to make a change to the FCA
Financial conduct Authority will develop
targets to eliminate all equities
relating to fossil fuel exploitation
from UK stock market and will
immediately prohibit the issuing of new
shares for those purposes no surprise
here really from the green party energy
currently makes up 12.9% of the footsy
and it'd be interesting to see what
effect this would have but energy tends
to do well in times of high inflation
but that may change but that may change
when and if the new proposed windfall
taxes it introduced on them suggested by
labor and the lib Dems and if labor do
set up Great British energy this could
also have a huge impact on the energy
sector if it goes ahead so there could
be a lot of turbulence in that sector
going forward I think having read
through these manifestos multiple times
I created this comparison what I find
sad almost is how all of this just
divides people so much depending on your
personal circumstance and Views if I was
to look at this at just a surface level
view reforms policies would give me the
most financial gain personally
regardless if you were to agree with
other policies or not how viable you
think that is is open to inter
reputation it's clearly not the only
Factor we need to consider as it's much
more complex than that can you imagine
if you could just cherry pick or we
could just vote on each of these
policies that we believed in as a nation
as I think most of us would agree and I
think if I'm completely honest I
probably feel like most of you I don't
want to vote for the conservatives I
don't really want to vote for labor and
I just feel kind of lost in the middle
and I don't really like any of them can
you imagine if these parties instead of
poking holes and bickering at one
another actually work together to
achieve something it all seems like such
a big waste of taxpayers money to me no
matter what happens we'll get through it
and as always I will do my best to keep
you updated as things progress I put
these side by side as I want you to have
as much transparency and material as you
can please do go ahead and read the
manifesto yourself so you can fully
understand it and make up your own mind
and most of all let's be kind to one
another if you want to take some steps
that could help to improve your finances
then this video right here could help
thanks
Voir Plus de Vidéos Connexes
Autumn Budget 2024: How “Painful” Will It Be?
How the rich avoid paying taxes
Budget 2024 impact on financial planning - Latest Income tax changes | Tax on stocks & mutual funds
Beating the Tax-Man with Dan Thompson
Five Hidden Costs in Rachel Reeves' Upcoming Budget You Should Know
Sadece Fakirler Vergi Öder - Zenginlerin Vergiden Kaçınma Sırrı
5.0 / 5 (0 votes)