So farewell then inheritance tax? Not so fast Is Downing Street really planning to abolish inheritance tax? Source: HMRC Shortly before the so-called ‘silly season’ (Parliament’s summer recess) got underway, several newspapers carried stories that Downing Street was considering the abolition of inheritance tax (IHT) in an attempt to appeal to certain voters. The speculation…

Time to get real on interest rates As interest rates continue to rise, we need to consider why. Source: Bank of England, National Statistics Cast your mind back to July 2020. Covid-19 was creating massive social and economic disruption, reflected in a Bank of England interest rate of just 0.1% and instant access savings rates…

Capital gains tax on the rise – behind the headlines Capital gains tax raised £16.7 billion in 2021/22, according to HMRC – a 15% increase over the previous year. But what lies behind these statistics?  Source: HMRC In early August media outlets reported that the government had raised a record amount of capital gains tax…

What’s next? Looking ahead to new tax policy With a general election less than 18 months away, thoughts are turning towards the potential policies of a new occupant of 11 Downing Street. With most opinion polls showing a lead for the Labour Party of around 20%, what the Shadow Chancellor, Rachel Reeves, says about her…

A banking crisis close to home? Rising mortgage rates are posing some difficult questions for one of the major providers of housing finance. You would think that a group estimated to have provided £8.8 billion of residential property finance to 170,000 first-time buyers in 2022 would be well known, with a high street presence and…

Behind the numbers on income tax New income tax statistics from HMRC appear to be good news, but the numbers are not what they seem.   Taxpayer’s marginal rate Basic Rate Higher Rate Additional Rate 2020/21 Average tax rate 9.5% 21.8% 38.3% 2023/24 Average tax rate 9.9% 20.8% 38.0% Source: HMRC This table, recently released…

The reality of retirement affordability New research reveals that one in three people could face hardship in retirement. Source: Frontier Economics based on Scottish Widows survey data The “cost of living crisis” is a phrase that is hard to avoid in any media. High inflation, stealthily increasing taxation and constrained earnings growth are an unwelcome…

NICs deadline deferred, again If you were planning to fill the gaps in your national insurance contributions (NICs) record by 31 July, you no longer need to rush or worry – you now have until 2025. As is often the case with financial deadlines, publicity in the form of press stories and subsequent public awareness…

FCA takes on crypto: handle with great care The Financial Conduct Authority (FCA) recently announced a plan for tougher regulations of cryptoassets, such as Bitcoin. Recently published research undertaken for the FCA showed that in August 2022, nearly five million UK adults owned cryptoassets, typically cryptocurrencies such as Bitcoin and Ethereum. That was more than…

Tax is too complicated… say the legislators A parliamentary committee has been examining efforts to simplify tax, but progress is still a long way off. Among other things, last year’s ill-fated ‘mini-Budget’ was notable for the swiftness with which Jeremy Hunt reversed most of the proposals it contained. The promise of reduced corporation tax and…