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.
Mortgage approvals up but net lending down
Again we are seeing very different signals from the UK property market with the Bank of England today confirming that mortgage approvals were up in May but net mortgage lending was down by over 30%. This seems to be the general format of the UK property market with each report bringing positive aspects and negative aspects at same time. More and more investors and homeowners are becoming totally c...Read More
Art makes a great investment
Contemporary art has gone up in value by 55 per cent in the last 12 months alone, according to a study of auction sales from around the world conducted by Hiscox, making art an attractive prospect for those looking for a different kind of investment. In August, an investment group bucked the trend, paying an unbelievable £50 million for Damien Hirst's For the Love of God, a human skull covered in...Read More
How has the Northern Rock gone so badly wrong?
The announcement that Northern Rock is to cease payment of interest, where possible, on a number of the company's bonds and the confirmation that the UK government will be injecting a further £3 billion into the operation, which will be reorganised, has caused fury up and down the country. When the business was taken over, using taxpayers money, the government promised a return on investment in t...Read More
Council tenants and their right to buy
Even in the midst of the current economic downturn which has seen property prices plummet across the UK there are still many council tenants able to acquire their properties at a significant discount to the current market price. While a number of tenants may not be in a position to acquire their homes at this point in time it is worthwhile checking out what rights you have and when they may expire...Read More
Government minister finances shrouded in secrecy
Despite a promise by Gordon Brown to be "whiter than white" during his time in office it appears that this promise has yet again been broken. It has taken two years for the government to agree to release the financial details of each and every minister and even now it would appear that many ministers are looking to hide their investments and finances behind "blind trusts". The latest name to be me...Read More