Original Broadcast: This is Money
While the average household pays £16,700 in direct tax on income, our audit shows this is just the tip of the iceberg. We all pay a multitude of other taxes, from air passenger duty to environmental levies on our energy bills. Lee Boyce, Simon Lambert and Georgie Frost discuss what the total sum is - and that our tax rate is more like 57%. And tax rises don't always bring in more cash for the Treasury coffers. As the Government weighs up introducing yet another tax — this time a wealth tax — we explore why despite the allowance being slashed the capital gains tax take is down and what it means for the Chancellor's plans. How much you need to feel wealthy in different areas of Britain? Does £1 million still cut it? The six burning questions everyone is asking financial advisers right now… and their expert answers. And we answer a reader query: 'Could I give £250 gifts to 400 people who then pay them to my daughters to beat inheritance tax on £100,000?'
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Original Broadcast: This is Money
Georgie Frost, Simon Lambert and Lee Boyce consider how your money has been impacted by the first 12 months of the Labour Government: the good, the bad and the ugly. It's now looking almost inevitable that the limits on Cash ISA investment will be cut, and the team look ahead to the prospect of more tax rises on the way. Meanwhile, the IFS plans to sort out the state pension, and they discuss a key question for those looking to move home: what's putting people off buying your house?
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Original Broadcast: This is Money
Tax is an increasingly taxing subject for many people who feel hard done by as Britain’s complicated system catches them out. From quirks of the system, such as the 60 per cent tax trap and child benefit removal, to the childcare cliff edge, frozen thresholds, and pensions soon to be dragged into inheritance tax, there’s a whole host of things to drive us mad. And, it’s getting worse. The Tories and now Labour have both chosen to ratchet up the things that trip people up to raise money, rather than sort out a tax system that most economists say is a total mess. So how far would you go to avoid your personal tax raid? And is tax changing people’s behaviour? Lee highlights how. Georgie Frost, Lee Boyce and Simon Lambert dive into how the British tax tail is wagging the dog. Plus, as the Switch 2 arrives and the video game industry goes from strength to strength, should you invest in video game firms? How much do you need for a comfortable retirement – and what does that get you? And finally, you put up an eight foot fence for privacy, your neighbour has gone from non-plussed to threatening to call the council over a planning breach, what do you do? The team have some answers. Are we allowed an eight foot fence? Our neighbour says we've broken planning rules.
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Original Broadcast: This is Money
What would you do with a £50,000 windfall? Exclusive research shows that many people would be too nervous to invest it. Georgie Frost, Simon Lambert and Lee Boyce discuss this, and they draw your attention to the pension inheritance tax trap. They also consider the leaked plot to raise taxes still further and the winter fuel payment u-turn. Simon speaks with the CEO of regulator OFGEM, and finally — Mastercard are to pay out £100m to their customers. Could this include you?
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Original Broadcast: This is Money
Technically, £100k annual earnings would meet the 'rich' definition, but many would say 'no'. Simon Lambert and Georgie Frost discuss with a psychologist how to address this vexed question. Also, following the new energy tariff changes, should you fix or not fix? And finally, Carol Knight explains why reducing the tax benefits on Cash ISAs will not make more people buy shares.
Guests: Carol Knight
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Original Broadcast: This is Money
More than a million people switched current account last year — the second time it has ticked over the 1m mark. So, who is winning the switching battle and is it all driven by people chasing a quick and easy buck from banks? Lee Boyce and Georgie Frost dive into the data and also look at why you might not be rich enough to bank with HSBC anymore — if you want its exclusive account. The Government rules out forcing businesses to accept cash — is that a smart move? Need help with your tax return? HMRC slammed for poor customer service record via the telephone, is all the criticism justified? And your next car insurance quote might just be significantly lower, as Lee sees a huge drop with an auto-renewal that had him smiling from ear-to-ear.
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Original Broadcast: This is Money
There's a spike in 30-year mortgages at present — does this rise in ultra-long mortgages, extending into retirement for many people, just store up problems for the future? Georgie Frost, Simon Lambert and Lee Boyce discuss this, and: are dazzling LED headlights about to be banned? Also, an iPhone 14 ordered from Tesco is delivered as a toy! Plus, we've all heard about high earners in England suffering excess taxation, but is it worse in Scotland?
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Inflation's spell below the Bank of England's 2% target has been brief and the latest CPI figure came in at a higher than expected 2.3%. Meanwhile, Bank of England boss Andrew Bailey has joined the Office of Budget Responsibility in stating that the recent Autumn Budget is likely to lift inflation, as employers face higher costs from national insurance and the rising minimum wage. On the other side of the Atlantic, President-elect Donald Trump is seen as bringing his own inflationary pressure, which could spread from the US to the rest of the world. So what does this mean for interest rates? Are cuts about to stall — and what happens next for borrowers and savers? Georgie Frost, Helen Crane and Simon Lambert, talk inflation, rates, mortgages and savings. The team also look at whether those needing to get a mortgage now should fix for two or five years. Plus, why the row over inheritance tax and farmers is symptomatic of Britain's bad tax system — and Simon's plan for a trade-off on IHT-free land. Crane goes on the case of money refunded for a faulty coffee machine much later to an empty gift voucher that had understandably gone in the bin. And finally, the listener question of the week is up and running, and it's one on sticking it to the man and having enough money to quit work for good.
Guests: Helen Crane
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Original Broadcast: This is Money
Are private sector retirement plans being put at risk in order to help strengthen public-sector gold-plated pensions? Georgie Frost discusses this and other topics with Simon Lambert and Lee Boyce, including a couple of irritating taxes, where interest rates will be next year and whether you should get a LISA if you already own a home. Plus, they identify some key property hotspots.
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UK Education Secretary Bridget Phillipson describes our current system for financing higher education as 'the worst of all worlds', and she's right. The combination of loan funding and universality has generated chronic problems for both students and universities. We need to apply inter-generational logic to address both this problem and the challenges faced by other disadvantaged young people from low-income backgrounds. The Times placed this story on its front page last Saturday, and re-introduction of maintenance grants for these young people will be part of the solution: this issue will clearly get some focus in the UK Budget on 30th October. Hopefully it will also include those other areas where focused help is needed for disadvantaged young people, including starter capital accounts and incentivised learning, with funding to be drawn from IHT receipts. Background music: 'Generations Away' by Unicorn Heads
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