View more on these topics

LibDem conference: Party votes to scrap higher rate pension tax relief

The LibDem conference has backed the Party’s economic policies including plans to scrap higher rate pension tax relief and raise the IHT threshold.

After a summation from Shadow Chancellor Vince Cable in Brighton this morning, delegates voted through the proposals that now become LibDem policy in the run-up to the next election.

As well as restricting tax relief on pension contributions to the basic rate, the Party has called for the IHT threshold to be raised to £500,000 and changes to IHT rules to limit the exemption on lifetime gifts to those made 15 years before death.

The proposals also call for a reform of housing stamp duty, ending the current ‘slab’ structure with the long term objective of ensuring all those buying properties up to £500,000 in value pay less than they currently do.

A LibDem Government would cut the basic rate of income tax by 4p and abolish council tax, replacing it with a new local tax.

Other proposals include an end to taper relief for Capital Gains Tax, a simplification of the tax code, increasing green taxes and bringing gains on property made by non-doms within Capital Gains Tax.

Cable said: “Only the Liberal Democrats have produced a costed plan to create a tax system that is fair, simple and green. I challenge Gordon Brown and David Cameron to back up their rhetoric by endorsing our plans.

“The national tax cuts will be paid for by abolishing the capital gains tax break, which allows the very rich to pay a lower tax rate than the people who clean their offices, as well as only providing tax relief for pensions at the standard rate; and raising taxes on polluters.”

Recommended

Clinical aptitude

When we first heard what wrap platforms had to offer, they seemed too good to be true. One administration system with all the available tax wrappers, unfettered investment choice, performance analysis, fund research tools, discounted funds and more. Sadly, it was too good to be true.In this country, we are yet to see a wrap […]

Harrison calls for charity drive

Positive Solutions has pledged to raise £100,000 for charity through charitable trust the Harrison Foundation.Outgoing PosSol executive chairman David Harrison asked 1,000 advisers at the firm’s annual partner forum in Birmingham last week to dip into their pockets for charity, promising to match their donations through PosSol and Aegon.He said: “Today, why don’t we give […]

Chancellor to chair private meeting with BoE and FSA over Northern Rock

The Chancellor is chairing a meeting of representatives today from the Bank of England and the Financial Services Authority to assess the current situation at Northern Rock. Bank of England Governor Mervyn King and an FSA representative will meet with Alastair Darling in a private meeting about the bank.A Treasury spokesperson says: “I can confirm […]

MM changes see advisers carry the can

It’s all change again on the multi-manager side this week as Marcus Brookes announced his departure from Gartmore to take a new role as head of Cazenove’s own range.

Japan Economic Insight

James Dowey, Chief Economist, and Paul Caruana-Galizia, Economist

The conventional wisdom is that following a roughly 50 per cent rise in the stock market in 2013 in Yen terms, the Japan trade is over and done*. So the story goes, those big gains were due to a one-off boost from quantitative easing (QE) and a depreciation of the Yen — policies that one should think of as a palliative to Japan’s economic weakness, but not a cure. Rather the cure, and by implication the necessary condition for a longer-term investment case, is deep structural reforms — a painstaking re-weaving of Japan’s economic and social fabric, no less. The story continues: this is a much tougher test than launching a blast of QE, and one that prime minister Shinzo Abe, although well intentioned and well supported by the public thus far, is likely to fail. Stick a fork in Japan, it’s done…continue reading

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment