New income tax rate set at 45%
The government has today introduced the new 45% tax rate for those earning over £150,000 per year but this is not planned to come into force until 2011. This has caused obvious concern within the Conservative party and while they have not commented specifically on the new tax, for fear of falling into a government trap, there are grave concerns that Conservative supporters will demand a clear strategy for the new income tax band.
This appears to be more of a political move that a fiscal move with the new tax band only affecting the top 1% of taxpayers in the UK and said to only raise a paltry £4 billion. At the same time as introducing this new tax rate the government has also confirmed that each basic rate taxpayer will be £145 better off next year due to changes in the tax bands. It is hoped that consumers will use this increased income wisely and it should hopefully instigate some form of economic recovery.
The Chancellor has caught many people off guard with his tax changes even though a number of the main ones where already leaked to the press. The 45% tax rate band had been kept under wraps until late last night and appears to have gone down well with traditional Labour supporters.
Northern Rock formally split in two this morning
The Treasury has confirmed that Northern Rock has been split into two separate operations today, commonly referred to as the good bank and the bad bank, with the bad bank renamed Northern Rock (Asset Management). In simple terms the bad bank will be closed to new mortgage arrangements and will retain a £50 billion mortgage book and £4.5 billion of unsecured personal loans. While 90% of the mo...Read More
The UK budget deficit is getting worse
News that Britain's budget deficit reached a colossal £13 billion in June alone, the worst figure on record for this particular month, has further deflated the balloon of those who believe the UK economy has turned. Despite constant denials by the UK authorities regarding the perilous state of the UK finances, the recent IMF (International Monetary Fund) report which cited the UK as potentially a...Read More
UK government tax policy starting to rebound
The UK government is starting to find life very tough with regards to taxation in the UK as more and more companies look offshore to reduce their tax liabilities. The latest company to look overseas is William Hill which will soon be moving its sportsbook operation offshore as a way to reduce corporate taxation from 15% to just 1.5%. While many people will argue that 15% is by no means extortionat...Read More
Is bankruptcy an option in your financial situation?
As consumer debts continue to rise in the UK, despite historically low base rates, more and more people are now taking professional advice regarding their debts. Even though there are many options available such as debt consolidation loans, IVAs and Trust Deeds in Scotland it seems that more and more people are now being forced down the route of bankruptcy.
Even though bankruptcy is...
£15 Million For Your Own Tax Haven
In a move, the like of which has not been seen for many years, one of the eight inhabited Channel Islands is being put up for sale at a price of £15 million. The owners of Herm, Pennie and Adrian Heyworth, took over the running of the island from Pennie's father but they have now decided to call it a day. In common with other Channel Island residents, the new owners of the Herm lease would on...Read More