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.
Rate hike 'likely' despite Eurozone slowdown
Growth in the eurozone fell moderately last month, according to new figures released by the European Central Bank (ECB).However analysts have warned that despite the slowdown, the bank is still likely to raise its benchmark interest rate to four per cent next week Ã¢â‚¬" as anticipated.The annual rate of growth of M3, a broad measure of money supply in eurozone nations, fell to 10.4 per cent...Read More
Are tax efficient investment vehicles still worth considering in the current environment?
The introduction of ISAs and other tax efficient investment vehicles over the last decade have proved very popular although many people are wondering if they should consider these in light of the current economic climate. While it is essential that any investor looking to invest money into the UK stock market, property market or any other market takes professional advice regarding their own partic...Read More
Wealthy investors shun fund managers
A report by Merrill Lynch Wealth Management has cast a dark shadow over the fund management industry which has suffered a significant loss of confidence over the last 18 months. It is reported that almost half of the world's 8.6 million wealthy investors, those with over $1 million to invest, appear to have lost faith with fund management companies with many of them withdrawing funds.
Commons committee stokes up the pay-as-you-go motoring scheme again
Despite a move to introduce pay as you drive motoring being shot down in flames by UK motorists only 2 years ago it looks as though this particular policy may well be back on the agenda. Citing the fact that motorists no longer believe the government when it introduces tax rises for motorists in the name of "the green revolution" there is a push to put pay as you drive motoring back on the agenda....Read More
UK set to leave recession in the third quarter of 2009
Today's revision of the GDP figures between April and June were well received, even though the adjustment was minimal, and many analysts now believe the UK will move out of recession in the third quarter of 2009. HSBC is forecasting a 0.5% rise in the UK economy in the third quarter and a 0.7% rise in the fourth quarter. So will 2009 be the end of the UK recession?
While there are h...