Wednesday, 3 December 2014

Rabbits out of the hat

We all wonder what eye-catching give aways, reforms or consulations the Chancellor will put on show today.

Stamp Duty
One being mooted is a reform to Stamp Duty, whereby you'd pay a bit more on each extra portion of the purchase price of a home, replacing the current method of paying a higher rate on the whole purchase price each time the price goes over a threshold.
This change is already being brought in Scotland.

Pensioner Bonds
Special high interest bond for pensions, starting in January. Yes, we already know about them, but Osborne's likely to say more about the rates being offered.

Inheritance Tax
The Conservatives wanted to raise the threshold to £1m from £325,000. One for the Budget, maybe.

Personal Allowance increases.
Going to £10,500 in April, but perhaps we could be given detail about the stepped increases to the further goal of £12,500.

Pension Tax Relief
Lots of speculation recently about taking full tax relief from 40% taxpayers, taking them down to the standard 20% or something in between. And lots of warnings that a Tory Chancellor wouldn't do this. The lure is the billions of pounds that could be released to cover the Tories' promise of £7bn in tax cuts if they won the election.
A possible half way house would be to restrict the tax relief for 45% taxpayers.

Fuel Duty
Keep going with the freeze.

Peer to Peer lending
More about including this and Crowdfunding in tax-free Individual Savings Accounts. And more on promoting new Financial Technology. The Chancellor's very keen on cyber-banking and how the UK can be a leader.

That's a start, anyway.

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