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.
What will happen when more properties come onto the market?
As we have covered over the last few weeks, a number of property experts believe that the UK property sector is set to move higher in the latter part of 2009 and may actually move into positive ground compared to prices at the start of the year. However, cynics suggest that much of the increase in the "average price of a UK home" is primarily because of a shortage of quality homes on the market wh...Read More
The £65 billion pension hit
It has been reported that the top 100 companies in the UK, as denoted by the FTSE 100 index, have lost around £65 billion from the value of their pension assets over the last 12 months. When added to the previous deficit this equates to a shortfall of £135 billion which will at some stage need to be replaced. So how and when will company pension funds recover?
In the past we have...
HBOS Introduce Mortgage Entry Fee
After the industry was heavily criticised by the regulators for the old mortgage exit fees, it seems that Halifax (now part of HBOS) has taken a new route to raising money from mortgage customers – the mortgage entry fee. Payable on completion of a mortgage, the £245 fee is described as covering costs for setting up the mortgage account, the paper work for the mortgage and closing the acco...Read More
Hargreaves Lansdown contemplates life as part of a larger group
UK financial outfit Hargreaves Lansdown is currently reflecting on the retail distribution review draft proposals announced by the Financial Services Authority (FSA). As we covered in one of our earlier post, these draft proposals could see the abolishment of commission only transactions and force investors to pay fees upfront either as part of their investment or as a one-off payment.
How many times have you been to your local supermarket and been beckoned over by a salesperson looking to sell you their in-store loyalty card? Are you like the vast majority of the UK population and walk away? Are you really missing out on any significant cost savings?
To understand the logic at work it is worth remembering that basically they are a means of attracting you back to...