Facts & Figures Financial Planning managing director Simon Webster
’The 50p rate should go. It is politically inspired, perversely it drives down revenue, it undermines entrepreneurship and we have one of the highest tax rates in the world.
’The small business rates exemption is due to end in October 2012 and I think it should be extended. It would remove a barrier to entry for the establishment of new businesses by keeping start-up costs low. Small firms will be the engine of the recovery.
“The Government should continue higher-rate relief on pension contributions. People say these people can afford to save but it is actually the hard-pressed middle who would be hit because the super-rich take their money offshore.’
Forty Two Wealth Management partner Alan Dick
’The Government should not tinker with anything to do with pension tax relief. If it is trying to encourage people to save, then constantly shifting the goal-posts will confuse people and put them off.
’Currently, people lose £1 of their personal allowance for every £2 they earn above £100,000. This means people earning between £100,000 and £114,950 pay a notional tax rate of 60 per cent. This should end because it affects far more people than the 50p rate.’
Axxis Financial Planning director Owen Wintersgill
’I would like to see the Government index-link the pension lifetime allowance. It is due to fall from £1.8m where it is now, to £1.5m in April. It used to be index-linked and it should go back to that.
“Cutting the amount people can put into pensions tax free from the current limit of £50,000 would be a reasonable way of reducing the cost of tax relief. Some very well paid people are using it to avoid tax on earnings at the end of their careers.’
Key Financial Consultants senior consultant Lee Rawding
’There is talk of a 25 per cent VAT rate for luxury items but these items will probably not be super yachts but things like mid-sized German cars. The Government should be trying to reduce taxes instead of raising them.
’Raising the personal allowance would take some lower earners out of tax, but even people on low wages should contribute something so the Government should introduce a living wage so people can afford to do that.’