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 can Alistair Darling do in his next budget?
As we approach the next UK budget there are many rumours flying around Parliament with regards to potential moves by the UK government, the introduction of new tax allowances and forecasts for the future. There appears to be no doubt that UK savers will receive some form of benefit over the next few weeks although exactly how much and when this will kick in the remains to be seen.
UK share dividends to fall by 13% in 2009
Even though many investors are still reeling from the significant fallout in the UK stock market after the onset of the ongoing recession, they could see a reduction in their income in 2009 with UK dividend set to fall by 13% on average in 2009. So how will this impact upon investors and the stock market?
On one hand the retention of cash by struggling companies will give them more...
RBS unveils manufacturing sector lifeline
Royal Bank of Scotland (RBS), 84% owned by UK taxpayers, has today revealed a £1 billion fund which has been put to one side purely and simply to assist the UK manufacturing sector. This is a sector which has been in terminal decline for many years and one which has been pushed to the limit over the last few months. Manufacturers in the UK will be able to apply for funding from £250,000-£25...Read More
Do you know how much it costs to run your bank account?
Over the last few months, as profitability in UK finance sector has become harder to come by, a number of charges have been introduced to the mix, with very few hitting the financial headlines. Many financial operations, such as Halifax, have used the introduction of new European laws to amend their small print and introduce new charges and potentially expensive changes to customer agreements.
Bradford & Bingley reveals upsurge in mortgage arrears
Revealing a loss of £119.5 million for the first six months of the financial year, government owned Bradford & Bingley saw mortgage arrears more than double from 2.48% to 5.88%. These figures relate to mortgage agreements with at least three month in overdue payments and while the figure is disappointing to say the least it looks as though it could get worse before it gets better.